Fennec Pharmaceuticals (NASDAQ: PDLI) and PDL BioPharma (NASDAQ:PDLI) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, earnings, risk, dividends, valuation, analyst recommendations and profitability.
Volatility & Risk
Fennec Pharmaceuticals has a beta of -0.71, indicating that its stock price is 171% less volatile than the S&P 500. Comparatively, PDL BioPharma has a beta of 0.3, indicating that its stock price is 70% less volatile than the S&P 500.
This is a breakdown of recent recommendations for Fennec Pharmaceuticals and PDL BioPharma, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Fennec Pharmaceuticals currently has a consensus price target of $19.00, suggesting a potential upside of 116.15%. PDL BioPharma has a consensus price target of $2.50, suggesting a potential upside of 2.04%. Given Fennec Pharmaceuticals’ stronger consensus rating and higher possible upside, equities analysts clearly believe Fennec Pharmaceuticals is more favorable than PDL BioPharma.
Institutional & Insider Ownership
49.8% of Fennec Pharmaceuticals shares are owned by institutional investors. Comparatively, 87.4% of PDL BioPharma shares are owned by institutional investors. 9.9% of Fennec Pharmaceuticals shares are owned by insiders. Comparatively, 2.3% of PDL BioPharma shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This table compares Fennec Pharmaceuticals and PDL BioPharma’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares Fennec Pharmaceuticals and PDL BioPharma’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Fennec Pharmaceuticals||N/A||N/A||-$7.04 million||($0.47)||-18.70|
|PDL BioPharma||$320.06 million||1.11||$110.74 million||$0.63||3.89|
PDL BioPharma has higher revenue and earnings than Fennec Pharmaceuticals. Fennec Pharmaceuticals is trading at a lower price-to-earnings ratio than PDL BioPharma, indicating that it is currently the more affordable of the two stocks.
PDL BioPharma beats Fennec Pharmaceuticals on 8 of the 13 factors compared between the two stocks.
Fennec Pharmaceuticals Company Profile
Fennec Pharmaceuticals Inc., a biopharmaceutical company, develops product candidates for use in the treatment of cancer in the United States. Its lead product candidate is the Sodium Thiosulfate, which has completed the Phase III clinical trial for the prevention of cisplatin induced hearing loss or ototoxicity in children. The company was formerly known as Adherex Technologies Inc. and changed its name to Fennec Pharmaceuticals Inc. in September 2014. Fennec Pharmaceuticals Inc. was founded in 1996 and is based in Research Triangle Park, North Carolina.
PDL BioPharma Company Profile
PDL BioPharma, Inc. acquires and manages companies, products, royalty agreements, and debt facilities in the biotechnology, pharmaceutical, and medical device industries in the United States, Europe, and internationally. The company operates in three segments: Income Generating Assets, Pharmaceutical, and Medical Devices. The Income Generating Assets segment consists of notes and other long-term receivables; royalty rights and hybrid notes/royalty receivables; equity investments in healthcare companies; and royalties from issued patents covering the humanization of antibodies, including Avastin, Herceptin, Xolair, Lucentis, Perjeta, Kadcyla, and Tysabri. The Pharmaceutical segment manufactures, markets, and sells prescription medicine products for the treatment of hypertension to wholesalers under the Tekturna and Tekturna HCT names in the United States, as well as under the Rasilez and Rasilez HCT names internationally. The Medical Devices segment manufactures and sells LENSAR laser systems for anterior capsulotomy, lens fragmentation, corneal and arcuate incisions to ophthalmic ambulatory surgical centers, specialty ophthalmic hospitals, and multi-specialty hospitals through a direct sales force. The company was formerly known as Protein Design Labs, Inc. and changed its name to PDL BioPharma, Inc. in 2006. PDL BioPharma, Inc. was founded in 1986 and is headquartered in Incline Village, Nevada.
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