Comparing Nektar Therapeutics (NASDAQ:NKTR) and Tricida (NASDAQ:TCDA)

Nektar Therapeutics (NASDAQ:NKTR) and Tricida (NASDAQ:TCDA) are both mid-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.

Earnings and Valuation

This table compares Nektar Therapeutics and Tricida’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nektar Therapeutics $1.19 billion 3.01 $681.31 million $3.78 5.41
Tricida N/A N/A -$102.81 million ($4.64) -9.06

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

Risk & Volatility

Nektar Therapeutics has a beta of 2.61, indicating that its share price is 161% more volatile than the S&P 500. Comparatively, Tricida has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500.

Profitability

This table compares Nektar Therapeutics and Tricida’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nektar Therapeutics -352.83% -26.60% -20.01%
Tricida N/A -57.81% -46.22%

Insider & Institutional Ownership

99.8% of Nektar Therapeutics shares are owned by institutional investors. Comparatively, 76.5% of Tricida shares are owned by institutional investors. 4.0% of Nektar Therapeutics shares are owned by insiders. Comparatively, 66.7% of Tricida shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for Nektar Therapeutics and Tricida, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nektar Therapeutics 1 8 5 0 2.29
Tricida 0 0 3 0 3.00

Nektar Therapeutics currently has a consensus target price of $30.46, suggesting a potential upside of 48.96%. Tricida has a consensus target price of $51.50, suggesting a potential upside of 22.44%. Given Nektar Therapeutics’ higher possible upside, equities analysts clearly believe Nektar Therapeutics is more favorable than Tricida.

Summary

Nektar Therapeutics beats Tricida on 10 of the 13 factors compared between the two stocks.

About Nektar Therapeutics

Nektar Therapeutics, a biopharmaceutical company, develops drug candidates for cancer, auto-immune disease, and chronic pain in the United States. The company develops NKTR-181, an orally-available mu-opioid analgesic molecule, which is in Phase III clinical trial for moderate to severe chronic pain; ONZEALD, a topoisomerase I inhibitor that is in Phase III clinical trial for advanced metastatic breast cancer in patients with brain metastases; and NKTR-214, a CD122-preferential interleukin-2 (IL-2) pathway agonist, which is in Phase I to treat immuno-oncology. It also develops NKTR-358, cytokine Treg stimulant, which is in Phase I to treat autoimmune diseases; NKTR-262, a toll-like receptor agonist that is in Phase I for solid tumors; and NKTR-255, which is in preclinical stage for immuno-oncology. In addition, the is developing ADYNOVATE and ADYNOVI for hemophilia A; MOVANTIK for opioid-induced constipation in adult patients with chronic non-cancer pain, and who have an inadequate response to laxatives; CIMZIA for crohn's disease, rheumatoid arthritis, and psoriasis/ankylosing spondylitis; and MIRCERA for anemia associated with chronic kidney disease. Further, it is developing Macugen for age-related macular degeneration; Somavert for acromegaly; Neulasta for neutropenia; Dapirolizumab Pegol for systemic lupus erythematosus; PEGPH20 for pancreatic, non-small cell lung cancer, and other tumor types; and longer-acting blood clotting proteins for hemophilia. The company has collaboration agreement with Takeda Pharmaceutical Company Ltd.; AstraZeneca AB; UCB Pharma S.A.; F. Hoffmann-La Roche Ltd; Bausch Health Companies Inc.; Pfizer Inc.; Amgen Inc.; UCB Pharma (Biogen); Halozyme Therapeutics, Inc.; Bristol-Myers Squibb Company; Baxalta Incorporated; and Eli Lilly and Company, as well as with Merck KGaA and Pfizer Inc to develop a therapy for treating pancreatic cancer. Nektar Therapeutics was founded in 1990 and is headquartered in San Francisco, California.

About Tricida

Tricida, Inc., a pharmaceutical company, focuses on the development and commercialization of its drug candidate, TRC101, a non-absorbed, orally-administered polymer designed as a potential treatment for metabolic acidosis in patients with chronic kidney disease (CKD). It has completed a Phase 3, double-blind, placebo-controlled trial of TRC101 in patients with CKD and metabolic acidosis. Tricida, Inc. was founded in 2013 and is headquartered in South San Francisco, California.

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