Auxilium Pharmaceuticals (NASDAQ: AUXL) and BioMarin Pharmaceutical (NASDAQ:BMRN) are both healthcare companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, dividends and analyst recommendations.

Profitability

This table compares Auxilium Pharmaceuticals and BioMarin Pharmaceutical’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Auxilium Pharmaceuticals -29.78% -76.75% -11.59%
BioMarin Pharmaceutical -15.54% -5.77% -4.00%

Valuation & Earnings

This table compares Auxilium Pharmaceuticals and BioMarin Pharmaceutical’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Auxilium Pharmaceuticals N/A N/A N/A N/A N/A
BioMarin Pharmaceutical $1.20 billion 13.79 -$106.70 million ($1.09) -86.61

Auxilium Pharmaceuticals has higher revenue, but lower earnings than BioMarin Pharmaceutical.

Insider & Institutional Ownership

97.5% of BioMarin Pharmaceutical shares are owned by institutional investors. 1.9% of BioMarin Pharmaceutical shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for Auxilium Pharmaceuticals and BioMarin Pharmaceutical, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Auxilium Pharmaceuticals 0 0 0 0 N/A
BioMarin Pharmaceutical 0 7 15 0 2.68

BioMarin Pharmaceutical has a consensus target price of $110.80, indicating a potential upside of 17.36%. Given BioMarin Pharmaceutical’s higher probable upside, analysts plainly believe BioMarin Pharmaceutical is more favorable than Auxilium Pharmaceuticals.

Summary

BioMarin Pharmaceutical beats Auxilium Pharmaceuticals on 8 of the 8 factors compared between the two stocks.

Auxilium Pharmaceuticals Company Profile

Auxilium Pharmaceuticals, Inc. is a specialty biopharmaceutical company that focuses on developing and marketing products to predominantly specialist audiences. Its core therapeutic focus continues to be in the area of urology, with an anchor position in men’s healthcare. The company’s products include Testim (testosterone gel) and testosterone gel are indicated for testosterone replacement therapy in adult males for conditions associated with a deficiency or absence of endogenous testosterone; TESTOPEL offers men an option that provides a long-acting androgenic effect; Striant (testosterone buccal system) CIII is indicated for replacement therapy in adult males for conditions associated with a deficiency or absence of endogenous testosterone; STENDRA is a phosphodiesterase 5 (PDE5) inhibitor indicated for the treatment of erectile dysfunction; among others.

BioMarin Pharmaceutical Company Profile

BioMarin Pharmaceutical Inc. is a biotechnology company. The Company develops and commercializes pharmaceuticals for various diseases and medical conditions. As of December 31, 2016, the Company’s therapy portfolio consisted of five products, and multiple clinical and pre-clinical product candidates. Its commercial products include Aldurazyme (laronidase) for Mucopolysaccharidosis I (MPS I), Firdapse (amifampridine phosphate) for Lambert Eaton Myasthenic Syndrome (LEMS), Kuvan (sapropterin dihydrochloride) for phenylketonuria (PKU), Naglazyme (galsulfase) for Mucopolysaccharidosis VI (MPS VI) and Vimizim (elosulfase alpha) for Mucopolysaccharidosis IV Type A (MPS IV A). The Company is conducting clinical trials on various product candidates for the treatment of various diseases. Its clinical product candidates include Brineura, pegvaliase, vosoritide, BMN 270 and BMN 250.

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