Financial Survey: Iterum Therapeutics (NASDAQ:ITRM) vs. Neurocrine Biosciences (NASDAQ:NBIX)

by · The Markets Daily

Neurocrine Biosciences (NASDAQ:NBIXGet Free Report) and Iterum Therapeutics (NASDAQ:ITRMGet Free Report) are both medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, institutional ownership and profitability.

Volatility and Risk

Neurocrine Biosciences has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500. Comparatively, Iterum Therapeutics has a beta of 2.96, indicating that its share price is 196% more volatile than the S&P 500.

Profitability

This table compares Neurocrine Biosciences and Iterum Therapeutics’ net margins, return on equity and return on assets.

Net MarginsReturn on EquityReturn on Assets
Neurocrine Biosciences21.55%19.79%13.82%
Iterum TherapeuticsN/AN/A-65.54%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Neurocrine Biosciences and Iterum Therapeutics, as reported by MarketBeat.com.

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
Neurocrine Biosciences031822.96
Iterum Therapeutics12001.67

Neurocrine Biosciences presently has a consensus price target of $187.52, suggesting a potential upside of 7.61%. Given Neurocrine Biosciences’ stronger consensus rating and higher probable upside, analysts clearly believe Neurocrine Biosciences is more favorable than Iterum Therapeutics.

Valuation & Earnings

This table compares Neurocrine Biosciences and Iterum Therapeutics”s gross revenue, earnings per share (EPS) and valuation.

Gross RevenuePrice/Sales RatioNet IncomeEarnings Per SharePrice/Earnings Ratio
Neurocrine Biosciences$2.86 billion6.13$478.60 million$6.4926.85
Iterum Therapeutics$390,000.004.10-$24.77 million($0.75)-0.04

Neurocrine Biosciences has higher revenue and earnings than Iterum Therapeutics. Iterum Therapeutics is trading at a lower price-to-earnings ratio than Neurocrine Biosciences, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

92.6% of Neurocrine Biosciences shares are held by institutional investors. Comparatively, 9.2% of Iterum Therapeutics shares are held by institutional investors. 4.6% of Neurocrine Biosciences shares are held by insiders. Comparatively, 2.0% of Iterum Therapeutics shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Neurocrine Biosciences beats Iterum Therapeutics on 14 of the 15 factors compared between the two stocks.

About Neurocrine Biosciences

(Get Free Report)

Neurocrine Biosciences, Inc. discovers, develops, and markets pharmaceuticals for neurological, neuroendocrine, and neuropsychiatric disorders in the United States and internationally. The company’s products include INGREZZA for tardive dyskinesia and chorea associated with Huntington’s disease; ALKINDI for adrenal insufficiency; Efmody capsules for classic congenital adrenal hyperplasia; Orilissa tablets for endometriosis; and Oriahnn capsules to treat uterine fibroids. Its product candidates in clinical development include valbenazine to treat dyskinetic cerebral palsy in pediatrics and adults; NBI-921352 to treat developmental and epileptic encephalopathy syndrome in pediatrics and adults; NBI-827104 to treat epileptic encephalopathy with continuous spike-and-wave during sleep; NBI-1076986 to treat movement disorders; crinecerfront to treat congenital adrenal hyperplasia in adults and children; EFMODY to treat congenital adrenal hyperplasia and adrenal insufficiency in adults; valbenazine for the adjunctive treatment of schizophrenia; NBI-1065845 for the treatment of inadequate response to treatment in major depressive disorder; luvadaxistat to treat cognitive impairment related to schizophrenia; NBI-1117568 for the treatment of schizophrenia; NBI-1070770 to treat major depressive disorder; NBI-1117570 for the treatment of symptoms of psychosis and cognition in neurological and neuropsychiatric conditions; and NBI-1117569, NBI-1117567, and NBI-1065890 to treat CNS indications. The company also has license and collaboration agreements with Heptares Therapeutics Limited; Takeda Pharmaceutical Company Limited; Idorsia Pharmaceuticals Ltd; Xenon Pharmaceuticals Inc.; Voyager Therapeutics, Inc.; BIAL Portela & Ca, S.A.; Mitsubishi Tanabe Pharma Corporation; and AbbVie Inc. The company was incorporated in 1992 and is headquartered in San Diego, California.

About Iterum Therapeutics

(Get Free Report)

Iterum Therapeutics plc, a clinical-stage pharmaceutical company, engages in developing and commercializing anti-infectives in Ireland, Bermuda, and the United States. It is developing sulopenem, a novel anti-infective compound with oral and intravenous formulations that is in Phase III clinical trials for the treatment of uncomplicated urinary tract infections, complicated urinary tract infections, and complicated intra-abdominal infections. The company was incorporated in 2015 and is headquartered in Dublin, Ireland.