Critical Contrast: Arrowhead Pharmaceuticals (NASDAQ:ARWR) versus Chiasma (NASDAQ:CHMA)

Arrowhead Pharmaceuticals (NASDAQ:ARWR) and Chiasma (NASDAQ:CHMA) are both medical companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, dividends, valuation and earnings.

Valuation and Earnings

This table compares Arrowhead Pharmaceuticals and Chiasma’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Arrowhead Pharmaceuticals $16.14 million 183.22 -$54.45 million ($0.65) -47.98
Chiasma N/A N/A -$31.26 million ($1.28) -3.81



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

Profitability

This table compares Arrowhead Pharmaceuticals and Chiasma’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Arrowhead Pharmaceuticals 33.28% 26.27% 16.20%
Chiasma N/A -84.13% -55.97%

Insider & Institutional Ownership

62.9% of Arrowhead Pharmaceuticals shares are held by institutional investors. Comparatively, 63.2% of Chiasma shares are held by institutional investors. 4.8% of Arrowhead Pharmaceuticals shares are held by company insiders. Comparatively, 8.3% of Chiasma shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Arrowhead Pharmaceuticals has a beta of 1.59, meaning that its share price is 59% more volatile than the S&P 500. Comparatively, Chiasma has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for Arrowhead Pharmaceuticals and Chiasma, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Arrowhead Pharmaceuticals 0 1 5 0 2.83
Chiasma 0 0 5 0 3.00

Arrowhead Pharmaceuticals presently has a consensus target price of $30.90, suggesting a potential downside of 0.93%. Chiasma has a consensus target price of $14.00, suggesting a potential upside of 186.89%. Given Chiasma’s stronger consensus rating and higher possible upside, analysts plainly believe Chiasma is more favorable than Arrowhead Pharmaceuticals.

Arrowhead Pharmaceuticals Company Profile

Arrowhead Pharmaceuticals, Inc. develops medicines for the treatment of intractable diseases in the United States. The company's pipeline include ARO-AAT, a RNA interference (RNAi) therapeutic candidate for the treatment of liver diseases associated with alpha-1 antitrypsin deficiency; ARO-APOC3 to treat hypertriglyceridemia; ARO-ANG3 to reduce production of angiopoietin-like protein 3; ARO-ENaC to reduce production of the epithelial sodium channel alpha subunit in the airways of the lung; and ARO-HIF2 for the treatment of clear cell renal cell carcinoma. It is also involved in the development of ARO-HBV, a third-generation subcutaneously administered RNAi therapeutic candidate to treat chronic hepatitis B virus infection; AMG 890 to reduce production of apolipoprotein A; and ARO-AMG1 for treating undisclosed genetically-validated cardiovascular target. Arrowhead Pharmaceuticals, Inc. has collaboration and license agreement with Amgen, Inc.; and Janssen Pharmaceuticals, Inc. to develop RNAi therapeutics. The company was formerly known as Arrowhead Research Corporation and changed its name to Arrowhead Pharmaceuticals, Inc. in April 2016. Arrowhead Pharmaceuticals, Inc. was incorporated in 1989 and is headquartered in Pasadena, California.

Chiasma Company Profile

Chiasma, Inc., a clinical-stage biopharmaceutical company, focuses on developing oral medications using transient permeability enhancer technology platform for the treatment of rare and serious chronic disease in the United States, Europe, and internationally. The company offers oral octreotide capsules for adult patients under the MYCAPSSA name, which is in two Phase III clinical trials for the treatment of acromegaly, a condition that results in the body's production of excess growth hormone. Chiasma, Inc. was founded in 2001 and is headquartered in Waltham, Massachusetts.

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