AstraZeneca (NASDAQ:AZN – Get Free Report) and Iterum Therapeutics (NASDAQ:ITRM – Get Free Report) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, earnings, risk, valuation, profitability and analyst recommendations.
Analyst Recommendations
This is a breakdown of current ratings for AstraZeneca and Iterum Therapeutics, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| AstraZeneca | 1 | 1 | 7 | 2 | 2.91 |
| Iterum Therapeutics | 0 | 0 | 1 | 0 | 3.00 |
AstraZeneca currently has a consensus target price of $89.75, indicating a potential upside of 15.85%. Iterum Therapeutics has a consensus target price of $5.00, indicating a potential upside of 397.51%. Given Iterum Therapeutics’ stronger consensus rating and higher possible upside, analysts clearly believe Iterum Therapeutics is more favorable than AstraZeneca.
Risk & Volatility
Earnings and Valuation
This table compares AstraZeneca and Iterum Therapeutics”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| AstraZeneca | $45.81 billion | 5.24 | $5.96 billion | $2.04 | 37.98 |
| Iterum Therapeutics | N/A | N/A | -$38.37 million | ($2.65) | -0.38 |
AstraZeneca has higher revenue and earnings than Iterum Therapeutics. Iterum Therapeutics is trading at a lower price-to-earnings ratio than AstraZeneca, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares AstraZeneca and Iterum Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| AstraZeneca | 13.11% | 29.34% | 11.15% |
| Iterum Therapeutics | N/A | -664.00% | -113.59% |
Insider & Institutional Ownership
20.4% of AstraZeneca shares are owned by institutional investors. Comparatively, 9.2% of Iterum Therapeutics shares are owned by institutional investors. 5.6% of Iterum Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Summary
AstraZeneca beats Iterum Therapeutics on 10 of the 14 factors compared between the two stocks.
About AstraZeneca
AstraZeneca PLC, a biopharmaceutical company, focuses on the discovery, development, manufacture, and commercialization of prescription medicines. The company's marketed products include Tagrisso, Imfinzi, Lynparza, Calquence, Enhertu, Orpathys, Truqap, Zoladex, Faslodex, Farxiga, Brilinta, Lokelma, Roxadustat, Andexxa, Crestor, Seloken, Onglyza, Bydureon, Fasenra, Breztri, Symbicort, Saphnelo, Tezspire, Pulmicort, Bevespi, and Daliresp for cardiovascular, renal, metabolism, and oncology. Its marketed products also comprise Vaxzevria, Beyfortus, Synagis, FluMist, Soliris, Ultomiris, Strensiq, Koselugo, and Kanuma for covid-19 and rare disease. The company serves primary care and specialty care physicians through distributors and local representative offices in the United Kingdom, rest of Europe, the Americas, Asia, Africa, and Australasia. It has a collaboration agreement with Neurimmune AG to develop and commercialize NI006. The company was formerly known as Zeneca Group PLC and changed its name to AstraZeneca PLC in April 1999. AstraZeneca PLC was incorporated in 1992 and is headquartered in Cambridge, the United Kingdom.
About Iterum Therapeutics
Iterum Therapeutics plc, a clinical-stage pharmaceutical company, engages in developing and commercializing anti-infectives in Ireland, Bermuda, and the United States. It is developing sulopenem, a novel anti-infective compound with oral and intravenous formulations that is in Phase III clinical trials for the treatment of uncomplicated urinary tract infections, complicated urinary tract infections, and complicated intra-abdominal infections. The company was incorporated in 2015 and is headquartered in Dublin, Ireland.
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