Head-To-Head Contrast: Menlo Therapeutics (MNLO) and Hutchison China MediTech (HCM)

Menlo Therapeutics (NASDAQ: MNLO) and Hutchison China MediTech (NASDAQ:HCM) are both medical companies, but which is the better business? We will compare the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, profitability, institutional ownership and valuation.

Profitability

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This table compares Menlo Therapeutics and Hutchison China MediTech’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Menlo Therapeutics N/A N/A N/A
Hutchison China MediTech N/A N/A N/A

Valuation and Earnings

This table compares Menlo Therapeutics and Hutchison China MediTech’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Menlo Therapeutics $4.58 million 44.30 -$29.07 million ($5.69) -1.55
Hutchison China MediTech $241.20 million 18.15 -$26.73 million ($0.22) -149.68

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Menlo Therapeutics and Hutchison China MediTech, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Menlo Therapeutics 0 1 3 0 2.75
Hutchison China MediTech 0 0 1 0 3.00

Menlo Therapeutics currently has a consensus price target of $46.25, indicating a potential upside of 423.78%. Hutchison China MediTech has a consensus price target of $38.00, indicating a potential upside of 15.40%. Given Menlo Therapeutics’ higher possible upside, analysts plainly believe Menlo Therapeutics is more favorable than Hutchison China MediTech.

Insider and Institutional Ownership

7.5% of Hutchison China MediTech shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Hutchison China MediTech beats Menlo Therapeutics on 5 of the 9 factors compared between the two stocks.

Menlo Therapeutics Company Profile

Menlo Therapeutics Inc., a biopharmaceutical company, focuses on the development and commercialization of serlopitant for the treatment of pruritus associated with dermatologic conditions in the United States. The company has completed Phase II clinical trials in pruritus associated with prurigo nodularis. It is also developing products that are in Phase II clinical trials in pruritus associated with psoriasis and atopic dermatitis, and refractory chronic cough. The company was formerly known as Tigercat Pharma, Inc. and changed its name to Menlo Therapeutics Inc. in May 2016. Menlo Therapeutics Inc. was founded in 2011 and is headquartered in Redwood City, California.

Hutchison China MediTech Company Profile

Hutchison China MediTech Limited, a biopharmaceutical company, engages in the research, development, manufacture, and sale of pharmaceuticals and healthcare products primarily in the People's Republic of China and Hong Kong. It operates through Innovation Platform and Commercial Platform segments. The company discovers and develops therapeutics in oncology and autoimmune diseases, as well as provides research and development services; and develops, manufactures, distributes, markets, and sells prescription and over-the-counter pharmaceutical products, and consumer health products under the Baiyunshan and Shang Yao brands. Its clinical drug candidates include Savolitinib, an inhibitor for treating non-small cell lung, colorectal, and gastric cancer, as well as papillary renal cell carcinoma; Fruquintinib, an oral inhibitor for the treatment of colorectal, non-small cell lung, and gastric cancer; Sulfatinib for treating neuroendocrine tumors, and thyroid and biliary tract cancer; and Epitinib for the treatment of non-small cell lung cancer, as well as for patients with glioblastoma. The company also develops Theliatinib epidermal growth factor receptor inhibitor for treating solid tumors, as well as for patients with esophageal cancer; HMPL-523, an oral inhibitor for the treatment of immunology, rheumatoid arthritis, and hematological cancers; HMPL-689, a small molecule inhibitor for the treatment of hematologic cancers, autoimmunity and transplant organ rejection, and other related inflammation diseases; HMPL-453, a small molecule inhibitor for the treatment of solid tumors; and HMPL-004 for the treatment of ulcerative colitis and Crohn's disease. It has strategic alliances with AstraZeneca AB (publ); Eli Lilly and Company; and Nestlé Health Science SA. The company was founded in 2000 and is headquartered in Central, Hong Kong. Hutchison China MediTech Limited is a subsidiary of Hutchison Healthcare Holdings Limited.

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