REGENXBIO (NASDAQ:RGNX) vs. Sarepta Therapeutics (SRPT) Critical Review

REGENXBIO (NASDAQ: RGNX) and Sarepta Therapeutics (NASDAQ:SRPT) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their profitabiliy, institutional ownership, earnings, risk, analyst recommendations, valuation and dividends.

Institutional and Insider Ownership

67.2% of REGENXBIO shares are held by institutional investors. Comparatively, 64.6% of Sarepta Therapeutics shares are held by institutional investors. 17.0% of REGENXBIO shares are held by company insiders. Comparatively, 9.6% of Sarepta Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares REGENXBIO and Sarepta Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
REGENXBIO -1,595.18% -39.52% -37.15%
Sarepta Therapeutics N/A -63.10% -52.08%

Analyst Recommendations

This is a summary of current recommendations and price targets for REGENXBIO and Sarepta Therapeutics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
REGENXBIO 0 0 2 0 3.00
Sarepta Therapeutics 0 4 15 1 2.85

REGENXBIO presently has a consensus price target of $37.50, suggesting a potential upside of 100.53%. Sarepta Therapeutics has a consensus price target of $62.50, suggesting a potential upside of 61.54%. Given REGENXBIO’s stronger consensus rating and higher possible upside, research analysts plainly believe REGENXBIO is more favorable than Sarepta Therapeutics.

Volatility and Risk

REGENXBIO has a beta of -0.73, suggesting that its share price is 173% less volatile than the S&P 500. Comparatively, Sarepta Therapeutics has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500.

Earnings & Valuation

This table compares REGENXBIO and Sarepta Therapeutics’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
REGENXBIO $4.65 million 123.95 -$75.96 million ($2.80) -6.68
Sarepta Therapeutics $56.77 million 37.45 -$211.01 million ($2.45) -15.79

REGENXBIO has higher revenue, but lower earnings than Sarepta Therapeutics. Sarepta Therapeutics is trading at a lower price-to-earnings ratio than REGENXBIO, indicating that it is currently the more affordable of the two stocks.

Summary

REGENXBIO beats Sarepta Therapeutics on 8 of the 14 factors compared between the two stocks.

About REGENXBIO

REGENXBIO Inc. is a clinical-stage biotechnology company. The Company’s gene therapy product candidates are designed to deliver genes to cells to address genetic defects or to enable cells in the body to produce therapeutic proteins or antibodies that are intended to impact disease. The Company develops products candidates across the therapeutic areas of metabolic, neurodegenerative and retinal diseases. Its product candidate, RGX-314, is meant for the treatment of wet age-related macular degeneration (wet AMD). Its product candidate, RGX-501, is meant for the treatment of homozygous familial hypercholesterolemia (HoFH). It is also developing product candidates, such as RGX-111 and RGX-121, to address the neurological symptoms of two severe genetic lysosomal storage diseases, Mucopolysaccharidosis Type I (MPS I) and Mucopolysaccharidosis Type II (MPS II), respectively. Its product candidates utilize viral vectors from its gene delivery platform, NAV Technology Platform.

About Sarepta Therapeutics

Sarepta Therapeutics, Inc. is a biopharmaceutical company. The Company focuses on the discovery and development of ribose nucleic acid (RNA)-targeted therapeutics for the treatment of rare neuromuscular diseases. It operates through discovering, developing, manufacturing and delivering therapies to patients with Duchenne muscular dystrophy (DMD). It is focused on the development of its disease-modifying DMD drug candidates. It has received accelerated approval for its product, EXONDYS 51, indicated for the treatment of DMD in patients who have a confirmed mutation of the DMD gene that is amenable to exon 51 skipping. EXONDYS 51 is studied in clinical trials under the name of eteplirsen. Its next generation phosphorodiamidate morpholino oligomer (PMO)-based compounds are synthetic compounds that bind to complementary sequences of RNA by standard Watson-Crick nucleobase pairing. Its PMO-based chemistries are peptide conjugated PMO (PPMO), PMO-X and PMOplus.

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