Head to Head Analysis: GW Pharmaceuticals PLC (GWPH) and Paratek Pharmaceuticals (PRTK)

Paratek Pharmaceuticals (NASDAQ: PRTK) and GW Pharmaceuticals PLC (NASDAQ:GWPH) are both medical companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, risk, dividends, earnings, institutional ownership, analyst recommendations and valuation.

Profitability

This table compares Paratek Pharmaceuticals and GW Pharmaceuticals PLC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Paratek Pharmaceuticals N/A -107.52% -64.00%
GW Pharmaceuticals PLC -1,384.41% -28.80% -25.20%

Volatility & Risk

Paratek Pharmaceuticals has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500. Comparatively, GW Pharmaceuticals PLC has a beta of 2.68, indicating that its stock price is 168% more volatile than the S&P 500.

Earnings and Valuation

This table compares Paratek Pharmaceuticals and GW Pharmaceuticals PLC’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Paratek Pharmaceuticals $7.56 million 90.88 -$90.38 million ($4.00) -6.19
GW Pharmaceuticals PLC $10.04 million 273.00 -$168.10 million ($5.43) -19.93

Paratek Pharmaceuticals has higher revenue, but lower earnings than GW Pharmaceuticals PLC. GW Pharmaceuticals PLC is trading at a lower price-to-earnings ratio than Paratek Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

82.3% of Paratek Pharmaceuticals shares are held by institutional investors. Comparatively, 75.1% of GW Pharmaceuticals PLC shares are held by institutional investors. 4.9% of Paratek Pharmaceuticals shares are held by insiders. Comparatively, 5.5% of GW Pharmaceuticals PLC shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations and price targets for Paratek Pharmaceuticals and GW Pharmaceuticals PLC, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Paratek Pharmaceuticals 0 0 7 1 3.13
GW Pharmaceuticals PLC 0 1 7 0 2.88

Paratek Pharmaceuticals currently has a consensus target price of $39.50, suggesting a potential upside of 59.60%. GW Pharmaceuticals PLC has a consensus target price of $151.25, suggesting a potential upside of 39.75%. Given Paratek Pharmaceuticals’ stronger consensus rating and higher possible upside, research analysts plainly believe Paratek Pharmaceuticals is more favorable than GW Pharmaceuticals PLC.

Summary

Paratek Pharmaceuticals beats GW Pharmaceuticals PLC on 7 of the 13 factors compared between the two stocks.

About Paratek Pharmaceuticals

Paratek Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company. The Company is focused on the development and commercialization of therapeutics based upon tetracycline chemistry. Its product candidates are the antibacterials omadacycline and sarecycline. Omadacycline is an antibiotic being developed for use as an empiric monotherapy option for patients suffering from serious, community-acquired bacterial infections. Sarecycline is a tetracycline-derived compound designed for use in the treatment of acne and rosacea. Its other product candidates are tetracycline-derived, molecular entities and are designed to utilize the recognized immune-modulation, anti-inflammatory and other beneficial properties of the tetracycline class. These research stage programs include product candidates for multiple sclerosis, spinal muscular atrophy, systemic inflammatory diseases, such as rheumatoid arthritis and inflammatory bowel diseases.

About GW Pharmaceuticals PLC

GW Pharmaceuticals plc is a biopharmaceutical company focused on developing and commercializing therapeutics from its cannabinoid product platform in a range of disease areas. The Company’s lead cannabinoid product candidate is Epidiolex, which is a liquid formulation of pure plant-derived cannabidiol (CBD). The Company offers Sativex (nabiximols), which is indicated for the treatment of spasticity due to multiple sclerosis (MS). The Company operates through three segments: Commercial, Sativex Research and Development, and Pipeline Research and Development. The Commercial segment distributes and sells the Company’s commercial products. The Sativex Research and Development segment seeks to maximize the potential of Sativex through the development of new indications. The Pipeline Research and Development segment seeks to develop cannabinoid medications other than Sativex across a range of therapeutic areas using its cannabinoid technology platform.

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