Critical Review: PTC Therapeutics (NASDAQ:PTCT) and HUTCHMED (NASDAQ:HCM)

PTC Therapeutics (NASDAQ:PTCTGet Free Report) and HUTCHMED (NASDAQ:HCMGet Free Report) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, earnings, valuation and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings for PTC Therapeutics and HUTCHMED, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PTC Therapeutics 5 6 3 0 1.86
HUTCHMED 0 1 3 0 2.75

PTC Therapeutics currently has a consensus target price of $34.29, indicating a potential upside of 35.84%. HUTCHMED has a consensus target price of $29.70, indicating a potential upside of 116.79%. Given HUTCHMED’s stronger consensus rating and higher probable upside, analysts plainly believe HUTCHMED is more favorable than PTC Therapeutics.

Insider & Institutional Ownership

14.1% of HUTCHMED shares are held by institutional investors. 5.3% of PTC Therapeutics shares are held by insiders. Comparatively, 3.6% of HUTCHMED shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares PTC Therapeutics and HUTCHMED’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PTC Therapeutics -80.40% N/A -43.41%
HUTCHMED N/A N/A N/A

Earnings & Valuation

This table compares PTC Therapeutics and HUTCHMED’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PTC Therapeutics $698.80 million 2.73 -$559.02 million ($8.65) -2.92
HUTCHMED $426.41 million 5.60 -$360.83 million N/A N/A

HUTCHMED has lower revenue, but higher earnings than PTC Therapeutics.

Risk and Volatility

PTC Therapeutics has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500. Comparatively, HUTCHMED has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500.

Summary

HUTCHMED beats PTC Therapeutics on 8 of the 10 factors compared between the two stocks.

About PTC Therapeutics

(Get Free Report)

PTC Therapeutics, Inc., a biopharmaceutical company, focuses on the discovery, development, and commercialization of medicines to patients with rare disorders. Its portfolio pipeline includes commercial products and product candidates in various stages of development, including clinical, pre-clinical and research and discovery stages, focuses on the development of treatments for multiple therapeutic areas, such as rare diseases. The company offers Translarna and Emflaza for the treatment of Duchenne muscular dystrophy in the European Economic Area and the United States, as well as to treat nonsense mutation Duchenne muscular dystrophy in Brazil and Russia; commercializes Tegsedi and Waylivra for the treatment of rare diseases in Latin America and the Caribbean; and markets Evrysdi for the treatment of spinal muscular atrophy in adults and children two months and older in Brazil. The company's splicing platform includes PTC518, which is being developed for the treatment of Huntington's disease; bio-e platform, such as vatiquinone and utreloxastat; metabolic platform comprising sepiapterin; gene therapy platform, including an asset targeting Friedreich ataxia; oncology platform, such as Unesbulin; and other multi-platform. PTC Therapeutics, Inc. has collaborations with F. Hoffman-La Roche Ltd and Hoffman-La Roche Inc., as well as the Spinal Muscular Atrophy Foundation to advance drug discovery and development research in regenerative medicine; and Akcea Therapeutics, Inc. to commercialize Tegsedi and Waylivra for the treatment of rare diseases in Latin America and the Caribbean. PTC Therapeutics, Inc. was incorporated in 1998 and is headquartered in South Plainfield, New Jersey.

About HUTCHMED

(Get Free Report)

HUTCHMED (China) Limited discovers, develops, and commercializes targeted therapeutics and immunotherapies for cancer and immunological diseases in Hong Kong and internationally. The company develops Savolitinib, an inhibitor for non-small cell lung cancer (NSCLC), papillary and renal cell carcinoma, colorectal cancer (CRC), and gastric cancer (GC); and Fruquintinib, an inhibitor for CRC, breast cancer, GC, endometrial cancer (EMC), NSCLC, hepatocellular carcinoma, and gastrointestinal and solid tumors. It also develops Surufatinib, an inhibitor for neuroendocrine tumors (NET), pancreatic NET, non-pancreatic NET, biliary tract cancer, sarcoma, neuroendocrine neoplasm, esophageal cancer, small cell lung cancer, GC, thyroid cancer, EMC, NSCLC, and solid tumors; HMPL-523, a spleen tyrosine kinase inhibitor for hematological cancers and certain chronic immune diseases; and HMPL-689 for isoform PI3Kd (phosphoinositide 3'-kinase delta). In addition, it develops Tazemetostat, an inhibitor of EZH2 for the treatment of certain epithelioid sarcoma and follicular lymphoma patients; HMPL-306, an inhibitor for hematological malignancies, gliomas, and solid tumors; HMPL-760, an Bruton's tyrosine kinase inhibitor; HMPL-453, an inhibitor for intrahepatic cholangiocarcinoma; HMPL-295 for solid tumors; HMPL-653 for metastatic solid tumors and tenosynovial giant cell tumors; HMPL-A83, an investigational IgG4-type humanized anti-CD47 monoclonal antibody; and Epitinib (HMPL-813) and Theliatinib (HMPL-309) inhibitors. It has collaboration agreements with AstraZeneca AB (publ), Lilly (Shanghai) Management Company Limited, BeiGene, Inmagene Biopharmaceuticals Co. Ltd., Innovent Biologics Co., Inc., Genor Biopharma Co. Ltd., Shanghai Junshi Biosciences Co. Ltd., and Epizyme, Inc. The company was formerly known as Hutchison China MediTech Limited and changed its name to HUTCHMED (China) Limited in May 2021. The company was incorporated in 2000 and is headquartered in Central, Hong Kong.

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