Critical Survey: Xenetic Biosciences (XBIO) versus Ariad Pharmaceuticals (ARIA)

Xenetic Biosciences (NASDAQ: XBIO) and Ariad Pharmaceuticals (NASDAQ:ARIA) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, valuation, earnings and profitability.

Earnings and Valuation

This table compares Xenetic Biosciences and Ariad Pharmaceuticals’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Xenetic Biosciences $3.00 million 5.58 -$54.20 million ($1.24) -1.55
Ariad Pharmaceuticals N/A N/A N/A ($0.18) -133.28

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

Profitability

This table compares Xenetic Biosciences and Ariad Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Xenetic Biosciences N/A -64.21% -46.31%
Ariad Pharmaceuticals -60.47% N/A -17.16%

Insider and Institutional Ownership

3.9% of Xenetic Biosciences shares are held by institutional investors. Comparatively, 87.0% of Ariad Pharmaceuticals shares are held by institutional investors. 7.9% of Xenetic Biosciences shares are held by insiders. Comparatively, 8.2% of Ariad Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Xenetic Biosciences and Ariad Pharmaceuticals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Xenetic Biosciences 0 0 0 0 N/A
Ariad Pharmaceuticals 0 4 1 0 2.20

Ariad Pharmaceuticals has a consensus price target of $22.00, suggesting a potential downside of 8.30%. Given Ariad Pharmaceuticals’ higher probable upside, analysts plainly believe Ariad Pharmaceuticals is more favorable than Xenetic Biosciences.

Summary

Ariad Pharmaceuticals beats Xenetic Biosciences on 7 of the 10 factors compared between the two stocks.

Xenetic Biosciences Company Profile

Xenetic Biosciences, Inc. is a clinical-stage biopharmaceutical company. The Company is focused on the research and development of certain pharmaceutical products for use in humans that includes the use of the Company’s platform technologies that enables the creation of drug therapies primarily for orphan indications. The Company’s technologies include PolyXen, Virexxa, OncoHist and ImuXen. The Company is focused primarily on developing its lead product candidates, including ErepoXen, Virexxa and OncoHist, and PolyXen technology. The Company’s lead product candidate ErepoXen, a polysialylated form of erythropoietin (EPO) for the treatment of anemia in pre-dialysis patients with chronic kidney disease, and Food and Drug Administration (FDA) orphan designated oncology therapeutics Virexxa and OncoHist for the treatment of progesterone receptor negative endometrial cancer and refractory Acute Myeloid Leukemia, respectively. It is also developing PSA-FVIII.

Ariad Pharmaceuticals Company Profile

ARIAD Pharmaceuticals, Inc. (ARIAD) is an oncology company. The Company is focused on transforming the lives of cancer patients with medicines. The Company’s product pipeline includes Iclusig (ponatinib), brigatinib, AP32788 and ridaforolimus. The Company’s Iclusig is a tyrosine kinase inhibitor (TKI) that is approved in the United States, the European Union, Australia, Switzerland, Israel and Canada for the treatment of adult patients with chronic myeloid leukemia (CML), and Philadelphia chromosome-positive acute lymphoblastic leukemia (Ph+ ALL). Its Brigatinib is an investigational inhibitor of anaplastic lymphoma kinase (ALK). Its AP32788 is a TKI, which is designed as a targeted therapy for patients with non-small cell lung cancer (NSCLC) with specific mutations in two kinases, epidermal growth factor receptor (EGFR), or human epidermal growth factor receptor 2 (HER2). Its Ridaforolimus is an investigational inhibitor of the mammalian target of rapamycin (mTOR).

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