Amicus Therapeutics, Inc. (FOLD) vs. Apellis Pharmaceuticals, Inc. (APLS): Comparing the Biotechnology Industrys Most Active Stocks – E Globalist

Amicus Therapeutics, Inc. (NASDAQ:FOLD) shares are up more than 9.97% this year and recently increased 1.49% or $0.15 to settle at $10.53. Apellis Pharmaceuticals, Inc. (NASDAQ:APLS), on the other hand, is up 108.79% year to date as of 11/27/2019. It currently trades at $27.54 and has returned -4.04% during the past week.

Amicus Therapeutics, Inc. (NASDAQ:FOLD) and Apellis Pharmaceuticals, Inc. (NASDAQ:APLS) are the two most active stocks in the Biotechnology industry based on todays trading volumes. To determine if one is a better investment than the other, we will compare the two companies growth, profitability, risk, return, and valuation characteristics, as well as their analyst ratings and sentiment signals.

The ability to consistently grow earnings at a high compound rate is a defining characteristic of the best companies for long-term investment. Analysts expect FOLD to grow earnings at a -1.00% annual rate over the next 5 years.

If theres one thing investors care more about than earnings, its cash flow. FOLDs free cash flow (FCF) per share for the trailing twelve months was -0.23. Comparatively, APLSs free cash flow per share was -0.84.

Analysts look at liquidity and leverage ratios to assess how easily a company can cover its liabilities. FOLD has a current ratio of 6.20 compared to 10.10 for APLS. This means that APLS can more easily cover its most immediate liabilities over the next twelve months. FOLDs debt-to-equity ratio is 0.27 versus a D/E of 1.01 for APLS. APLS is therefore the more solvent of the two companies, and has lower financial risk.

FOLD trades at a P/B of 4.90, and a P/S of 17.09, compared to a P/B of 12.58, for APLS. FOLD is the cheaper of the two stocks on book value basis but is expensive in terms of P/E and P/S ratio. Given that earnings are what matter most to investors, analysts tend to place a greater weight on the P/E.

Analyst Price Targets and Opinions

Just because a stock is cheaper doesnt mean theres more value to be had. In order to assess value we need to compare the current price to where its likely to trade in the future. FOLD is currently priced at a -41.11% to its one-year price target of 17.88. Comparatively, APLS is -36.16% relative to its price target of 43.14. This suggests that FOLD is the better investment over the next year.

Insider Activity and Investor Sentiment

Analysts often look at short interest, or the percentage of a companys float currently being shorted by investors, to aid in their outlook for a particular stock. FOLD has a short ratio of 8.66 compared to a short interest of 6.08 for APLS. This implies that the market is currently less bearish on the outlook for APLS.

Apellis Pharmaceuticals, Inc. (NASDAQ:APLS) beats Amicus Therapeutics, Inc. (NASDAQ:FOLD) on a total of 6 of the 13 factors compared between the two stocks. APLS has higher cash flow per share, generates a higher return on investment and higher liquidity. Finally, APLS has better sentiment signals based on short interest.

See the original post here:
Amicus Therapeutics, Inc. (FOLD) vs. Apellis Pharmaceuticals, Inc. (APLS): Comparing the Biotechnology Industrys Most Active Stocks - E Globalist