Spectrum Pharmaceuticals (NASDAQ: SPPI) and Array Biopharma (NASDAQ:ARRY) are both mid-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, valuation, analyst recommendations, profitability and earnings.
Insider & Institutional Ownership
77.2% of Spectrum Pharmaceuticals shares are owned by institutional investors. Comparatively, 92.5% of Array Biopharma shares are owned by institutional investors. 9.4% of Spectrum Pharmaceuticals shares are owned by insiders. Comparatively, 3.2% of Array Biopharma 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.
This table compares Spectrum Pharmaceuticals and Array Biopharma’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent recommendations and price targets for Spectrum Pharmaceuticals and Array Biopharma, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Spectrum Pharmaceuticals currently has a consensus target price of $29.00, suggesting a potential upside of 45.36%. Array Biopharma has a consensus target price of $18.38, suggesting a potential upside of 2.48%. Given Spectrum Pharmaceuticals’ higher possible upside, equities analysts clearly believe Spectrum Pharmaceuticals is more favorable than Array Biopharma.
Earnings and Valuation
This table compares Spectrum Pharmaceuticals and Array Biopharma’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Spectrum Pharmaceuticals||$128.37 million||16.17||-$91.24 million||($1.07)||-18.64|
|Array Biopharma||$150.85 million||25.04||-$116.81 million||($0.72)||-24.90|
Spectrum Pharmaceuticals has higher earnings, but lower revenue than Array Biopharma. Array Biopharma is trading at a lower price-to-earnings ratio than Spectrum Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Spectrum Pharmaceuticals has a beta of 2.02, indicating that its stock price is 102% more volatile than the S&P 500. Comparatively, Array Biopharma has a beta of 1.79, indicating that its stock price is 79% more volatile than the S&P 500.
Spectrum Pharmaceuticals beats Array Biopharma on 8 of the 13 factors compared between the two stocks.
About Spectrum Pharmaceuticals
Spectrum Pharmaceuticals, Inc. develops and commercializes oncology and hematology drug products. The company markets six drug products, including FUSILEV for patients with metastatic colorectal cancer and rescue after high-dose methotrexate therapy in osteosarcoma, and to diminish toxicity and counteract the effects of impaired methotrexate elimination and of inadvertent overdosage of folic acid antagonists; FOLOTYN, a folate analogue metabolic inhibitor for peripheral T-cell lymphoma (PTCL); ZEVALIN injection for patients with B-cell non-Hodgkin's lymphoma; MARQIBO, a sphingomyelin/cholesterol liposome-encapsulated formulation for adult patients with Philadelphia chromosome-negative acute lymphoblastic leukemia; BELEODAQ injection for PTCL; and EVOMELA for use as a conditioning treatment prior to autologous stem cell transplant in multiple myeloma patients. It is also developing POZIOTINIB for treating breast and lung cancer; ROLONTIS for chemotherapy-induced neutropenia; and QAPZOLA for intravesical instillation in post-transurethral resection of bladder tumors in patients with non-muscle invasive bladder cancer. The company sells its drugs through group purchasing organizations, wholesalers, and directly in the United States; and through distributors in Europe. Spectrum Pharmaceuticals, Inc. has licensing and development agreement with Cell Therapeutics, Inc.; license agreement with Merck & Cie AG, Sloan-Kettering Institute, and Cydex Pharmaceuticals, Inc.; development and commercialization collaboration agreement with Allergan, Inc.; collaboration agreement with Nippon Kayaku Co., LTD.; licensing and collaboration agreement with Onxeo DK; and co-development and commercialization agreement with Hanmi Pharmaceutical Company. The company was formerly known as NeoTherapeutics, Inc. and changed its name to Spectrum Pharmaceuticals, Inc. in December 2002. Spectrum Pharmaceuticals, Inc. was founded in 1987 and is headquartered in Henderson, Nevada.
About Array Biopharma
Array BioPharma Inc., a biopharmaceutical company, focuses on the discovery, development, and commercialization of small molecule drugs to treat patients with cancer in North America, Europe, and the Asia Pacific. The company's drugs in Phase III clinical trials include Binimetinib, Encorafenib, Selumetinib, and Ipatasertib/GDC-0068 for the treatment of cancer, as well as ASC08/Danoprevir to treat hepatitis C virus. Its drug candidates in Phase II/registration trials comprise Larotrectinib/LOXO-101, a PanTrk inhibitor for cancer; Tucatinib/ONT-380, a HER2 inhibitor for breast cancer; and Varlitinib/ASLAN001, a Pan-HER2 inhibitor for gastric or breast cancer. In addition, the company is developing ARRY-797, a p38 inhibitor, which is in Phase II clinical trials for Lamin A/C-related dilated cardiomyopathy; Motolimod/VTX-2337, a Toll-like receptor that is under Phase II clinical studies for cancer; and Prexasertib/LY2606368, a CHK-1 inhibitor, which is in Phase II clinical studies for cancer, as well as ARRY-382, a CSF1R inhibitor that is under Phase I/II clinical trial to treat cancer. Further, it is developing GDC-0575, a CHK-1 inhibitor that is in Phase Ib clinical trial for the treatment of cancer; LOXO-292, a RET inhibitor, which is under Phase I clinical trials to treat cancer; and LOXO-195, a NTRK inhibitor that is under Phase I clinical trials to treat cancer. Array BioPharma Inc. has a collaboration agreement with Amgen, Asahi Kasei Pharma Corporation, Loxo Oncology, and Mirati Therapeutics, Inc. The company was founded in 1998 and is headquartered in Boulder, Colorado.
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