Financial Analysis: Seattle Genetics (SGEN) & Nabriva Therapeutics AG (NBRV)

Seattle Genetics (NASDAQ: SGEN) and Nabriva Therapeutics AG (NASDAQ:NBRV) are both medical companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.

Institutional and Insider Ownership

97.6% of Seattle Genetics shares are held by institutional investors. Comparatively, 68.6% of Nabriva Therapeutics AG shares are held by institutional investors. 34.7% of Seattle Genetics shares are held by company insiders. Comparatively, 2.8% of Nabriva Therapeutics AG shares are held by company 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.

Profitability

This table compares Seattle Genetics and Nabriva Therapeutics AG’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Seattle Genetics -47.38% -32.87% -25.17%
Nabriva Therapeutics AG N/A -90.54% -72.82%

Volatility & Risk

Seattle Genetics has a beta of 2.38, meaning that its share price is 138% more volatile than the S&P 500. Comparatively, Nabriva Therapeutics AG has a beta of 1.71, meaning that its share price is 71% more volatile than the S&P 500.

Valuation & Earnings

This table compares Seattle Genetics and Nabriva Therapeutics AG’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Seattle Genetics $428.94 million 17.62 -$187.25 million ($1.43) -36.95
Nabriva Therapeutics AG $6.01 million 36.89 -$59.30 million ($2.45) -3.37

Nabriva Therapeutics AG has higher revenue, but lower earnings than Seattle Genetics. Seattle Genetics is trading at a lower price-to-earnings ratio than Nabriva Therapeutics AG, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and recommmendations for Seattle Genetics and Nabriva Therapeutics AG, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Seattle Genetics 2 9 7 0 2.28
Nabriva Therapeutics AG 0 0 7 0 3.00

Seattle Genetics presently has a consensus target price of $61.25, suggesting a potential upside of 15.92%. Nabriva Therapeutics AG has a consensus target price of $20.14, suggesting a potential upside of 143.86%. Given Nabriva Therapeutics AG’s stronger consensus rating and higher possible upside, analysts clearly believe Nabriva Therapeutics AG is more favorable than Seattle Genetics.

Summary

Seattle Genetics beats Nabriva Therapeutics AG on 7 of the 12 factors compared between the two stocks.

Seattle Genetics Company Profile

Seattle Genetics, Inc. is a biotechnology company focused on the development and commercialization of therapies for the treatment of cancer. The Company is engaged in the development and sale of pharmaceutical products on its own behalf or in collaboration with others. The Company’s marketed product ADCETRIS, or brentuximab vedotin, is an antibody-drug conjugate (ADC). In addition to ADCETRIS, the Company’s pipeline includes other clinical-stage ADC programs, such as ASG-22ME, SGN-LIV1A, SGN-CD19A, SGN-CD19B, SGN-CD123A, SGN-352A, and ASG-15ME, as well as two immuno-oncology agents, SEA-CD40, which is based on its sugar-engineered antibody (SEA) technology, and SGN-2FF, which is a small molecule. It also has multiple preclinical and research-stage programs that employ its technologies, including SGN-CD48A and a preclinical ADC. ADCETRIS is an ADC comprising an anti-CD30 monoclonal antibody attached by a protease-cleavable linker to a microtubule disrupting agent.

Nabriva Therapeutics AG Company Profile

Nabriva Therapeutics plc is a clinical stage biopharmaceutical company. The Company is engaged in engaged in the research and development of novel anti-infectives to treat serious infections, with a focus on the pleuromutilin class of antibiotics. The Company’s medicinal chemistry has enabled targeted discovery of novel pleuromutilins, including both intravenous and oral formulations of its lead product candidate, lefamulin. Lefamulin is a novel semi-synthetic pleuromutilin antibiotic with the potential to be the first-in-class available for systemic administration in humans. Lefamulin is being evaluated in two global, registrational Phase III clinical trials in patients with moderate to severe community-acquired bacterial pneumonia (CABP).It seeks to further pursue development of lefamulin for additional indications, including the treatment of acute bacterial skin and skin structure infections (ABSSSI), and is developing a formulation of lefamulin appropriate for pediatric use.

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