Head-To-Head Analysis: Wave Life Sciences (WVE) & HUTCHISON CHINA/S (HCM)

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Wave Life Sciences (NASDAQ:WVE) and HUTCHISON CHINA/S (NASDAQ:HCM) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, valuation, earnings and dividends.

Risk and Volatility

Wave Life Sciences has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500. Comparatively, HUTCHISON CHINA/S has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500.

Institutional and Insider Ownership

75.4% of Wave Life Sciences shares are owned by institutional investors. Comparatively, 17.9% of HUTCHISON CHINA/S shares are owned by institutional investors. 44.2% of Wave Life Sciences shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Wave Life Sciences and HUTCHISON CHINA/S’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Wave Life Sciences $14.41 million 59.25 -$146.65 million ($5.06) -4.92
HUTCHISON CHINA/S $214.11 million 16.72 -$74.81 million ($0.57) -47.12

HUTCHISON CHINA/S has higher revenue and earnings than Wave Life Sciences. HUTCHISON CHINA/S is trading at a lower price-to-earnings ratio than Wave Life Sciences, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Wave Life Sciences and HUTCHISON CHINA/S, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wave Life Sciences 0 1 4 0 2.80
HUTCHISON CHINA/S 0 0 2 0 3.00

Wave Life Sciences presently has a consensus target price of $50.80, indicating a potential upside of 103.85%. HUTCHISON CHINA/S has a consensus target price of $26.82, indicating a potential downside of 0.15%. Given Wave Life Sciences’ higher possible upside, equities research analysts plainly believe Wave Life Sciences is more favorable than HUTCHISON CHINA/S.

Profitability

This table compares Wave Life Sciences and HUTCHISON CHINA/S’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Wave Life Sciences -971.48% -120.60% -44.31%
HUTCHISON CHINA/S N/A N/A N/A

Summary

HUTCHISON CHINA/S beats Wave Life Sciences on 8 of the 14 factors compared between the two stocks.

About Wave Life Sciences

Wave Life Sciences Ltd., a clinical stage genetic medicine company, designs, optimizes, and produces of novel stereopure oligonucleotides through PRISM, a discovery and drug developing platform. The company is primarily developing oligonucleotides that target genetic defects to either reduce the expression of disease-promoting proteins or transform the production of dysfunctional mutant proteins into the production of functional proteins. It focuses on proprietary programs in neurology in the central nervous system and neuromuscular system. The company has a research, license, and option agreement with Pfizer Inc. and Takeda Pharmaceutical Company Limited for the research, development, and commercialization of stereopure oligonucleotide therapeutics and oligonucleotide therapeutics. Wave Life Sciences Ltd. was founded in 2012 and is based in Singapore.

About HUTCHISON CHINA/S

Hutchison China MediTech Limited, a commercial-stage biopharmaceutical company, engages in discovery, development, and commercialization of targeted therapeutics and immunotherapies for oncology and immunological diseases in the People's Republic of China and Hong Kong. The company operates through Innovation Platform and Commercial Platform segments. The company discovers and develops therapeutics in oncology and autoimmune diseases, as well as provides research and development services; and develops, manufactures, distributes, markets, and sells prescription and over-the-counter pharmaceutical products, and consumer health products under the Baiyunshan and Shang Yao brands. Its clinical stage drugs include Savolitinib, a c-MET inhibitor for the treatment of non-small cell lung cancer (NSCLC), papillary renal cell carcinoma, colorectal cancer, gastric cancer, and prostate cancer; and Fruquintinib, a inhibitor for the treatment of colorectal cancer and solid tumors. The company is also developing Surufatinib, an inhibitor for the treatment of pancreatic neuroendocrine tumors and solid tumors; and HMPL-523, an inhibitor for the treatment of indolent non-Hodgkin's lymphoma, as well as HMPL-689, a treatment for indolent non-Hodgkin's lymphoma and healthy volunteers. The company was incorporated in 2000 and is headquartered in Central, Hong Kong. Hutchison China MediTech Limited is a subsidiary of Hutchison Healthcare Holdings Limited.

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