Ariad Pharmaceuticals (NASDAQ: ARIA) and Xenetic Biosciences (NASDAQ:XBIO) are both healthcare companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, earnings, institutional ownership, valuation, dividends and risk.

Profitability

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This table compares Ariad Pharmaceuticals and Xenetic Biosciences’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ariad Pharmaceuticals -60.47% N/A -17.16%
Xenetic Biosciences N/A -64.21% -46.31%

Valuation & Earnings

This table compares Ariad Pharmaceuticals and Xenetic Biosciences’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ariad Pharmaceuticals N/A N/A N/A ($0.18) N/A
Xenetic Biosciences $3.00 million 6.51 -$54.20 million ($1.24) -1.81

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

Analyst Recommendations

This is a summary of current recommendations for Ariad Pharmaceuticals and Xenetic Biosciences, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ariad Pharmaceuticals 0 0 0 0 N/A
Xenetic Biosciences 0 0 0 0 N/A

Insider and Institutional Ownership

87.0% of Ariad Pharmaceuticals shares are held by institutional investors. Comparatively, 3.9% of Xenetic Biosciences shares are held by institutional investors. 8.2% of Ariad Pharmaceuticals shares are held by insiders. Comparatively, 7.9% of Xenetic Biosciences shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Ariad Pharmaceuticals beats Xenetic Biosciences on 5 of the 8 factors compared between the two stocks.

Ariad Pharmaceuticals Company Profile

ARIAD Pharmaceuticals, Inc. (ARIAD) is an oncology company. The Company is focused on transforming the lives of cancer patients with medicines. The Company’s product pipeline includes Iclusig (ponatinib), brigatinib, AP32788 and ridaforolimus. The Company’s Iclusig is a tyrosine kinase inhibitor (TKI) that is approved in the United States, the European Union, Australia, Switzerland, Israel and Canada for the treatment of adult patients with chronic myeloid leukemia (CML), and Philadelphia chromosome-positive acute lymphoblastic leukemia (Ph+ ALL). Its Brigatinib is an investigational inhibitor of anaplastic lymphoma kinase (ALK). Its AP32788 is a TKI, which is designed as a targeted therapy for patients with non-small cell lung cancer (NSCLC) with specific mutations in two kinases, epidermal growth factor receptor (EGFR), or human epidermal growth factor receptor 2 (HER2). Its Ridaforolimus is an investigational inhibitor of the mammalian target of rapamycin (mTOR).

Xenetic Biosciences Company Profile

Xenetic Biosciences, Inc. is a clinical-stage biopharmaceutical company. The Company is focused on the research and development of certain pharmaceutical products for use in humans that includes the use of the Company’s platform technologies that enables the creation of drug therapies primarily for orphan indications. The Company’s technologies include PolyXen, Virexxa, OncoHist and ImuXen. The Company is focused primarily on developing its lead product candidates, including ErepoXen, Virexxa and OncoHist, and PolyXen technology. The Company’s lead product candidate ErepoXen, a polysialylated form of erythropoietin (EPO) for the treatment of anemia in pre-dialysis patients with chronic kidney disease, and Food and Drug Administration (FDA) orphan designated oncology therapeutics Virexxa and OncoHist for the treatment of progesterone receptor negative endometrial cancer and refractory Acute Myeloid Leukemia, respectively. It is also developing PSA-FVIII.

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