Supernus Pharmaceuticals (SUPN) & resTORbio (TORC) Critical Analysis

Supernus Pharmaceuticals (NASDAQ: SUPN) and resTORbio (NASDAQ:TORC) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.

Institutional and Insider Ownership

95.5% of Supernus Pharmaceuticals shares are held by institutional investors. Comparatively, 3.8% of resTORbio shares are held by institutional investors. 6.7% of Supernus Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations for Supernus Pharmaceuticals and resTORbio, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Supernus Pharmaceuticals 0 1 9 0 2.90
resTORbio 0 0 4 0 3.00

Supernus Pharmaceuticals currently has a consensus target price of $51.90, suggesting a potential downside of 7.49%. resTORbio has a consensus target price of $29.25, suggesting a potential upside of 216.56%. Given resTORbio’s stronger consensus rating and higher probable upside, analysts clearly believe resTORbio is more favorable than Supernus Pharmaceuticals.

Profitability

This table compares Supernus Pharmaceuticals and resTORbio’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Supernus Pharmaceuticals 21.89% 30.18% 16.76%
resTORbio N/A N/A N/A

Valuation and Earnings

This table compares Supernus Pharmaceuticals and resTORbio’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Supernus Pharmaceuticals $302.24 million 9.61 $57.28 million $1.26 44.52
resTORbio N/A N/A -$33.77 million ($8.42) -1.10

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

Summary

Supernus Pharmaceuticals beats resTORbio on 10 of the 12 factors compared between the two stocks.

Supernus Pharmaceuticals Company Profile

Supernus Pharmaceuticals, Inc., a specialty pharmaceutical company, focuses on the development and commercialization of products for the treatment of central nervous system diseases in the United States. It offers Oxtellar XR, an extended-release oxcarbazepine for use in the treatment of epilepsy; and Trokendi XR, an extended-release topiramate, which is used for the treatment of epilepsy. The company's product candidates comprise SPN-810, a molindone hydrochloride that is in Phase III clinical trial for the treatment of impulsive aggression in patients with attention deficit hyperactivity disorder (ADHD); and SPN-812, a viloxazine hydrochloride, which is in Phase III clinical trial that is used for the treatment of ADHD. It also develops SPN-809, a viloxazine hydrochloride, which is in Phase II ready clinical trial for the treatment of depression. The company markets its products through wholesalers and pharmaceutical distributors. Supernus Pharmaceuticals, Inc. was founded in 2005 and is based in Rockville, Maryland.

resTORbio Company Profile

resTORbio, Inc., a clinical-stage biopharmaceutical company, focuses on the development and commercialization of novel therapeutics for the treatment of aging-related diseases. Its lead program is targeting the selective inhibition of TORC1, an evolutionary conserved pathway that contributes to the decline in function of multiple organ systems, including the immune, cardiac, and neurologic systems. The company's lead drug candidate RTB101 is a selective, orally administered, TORC1 inhibitor, which is being tested in a Phase 2b clinical trial as a first in-class immunotherapy for reducing the incidence of respiratory tract infections in the elderly by enhancing the function of the immune system. It also intends to develop RTB101 for additional aging-related indications, such as heart failure or neurodegenerative diseases. The company was founded in 2016 and is based in Boston, Massachusetts. resTORbio, Inc. is a subsidiary of PureTech Health plc.

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