Inotek Pharmaceuticals Corporation (ITEK) & Applied Genetic Technologies Corporation (AGTC) Financial Contrast

Inotek Pharmaceuticals Corporation (NASDAQ: ITEK) and Applied Genetic Technologies Corporation (NASDAQ:AGTC) are both small-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, institutional ownership, valuation, dividends and profitability.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Inotek Pharmaceuticals Corporation and Applied Genetic Technologies Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Inotek Pharmaceuticals Corporation 0 3 1 0 2.25
Applied Genetic Technologies Corporation 0 2 6 0 2.75

Inotek Pharmaceuticals Corporation presently has a consensus price target of $4.50, suggesting a potential upside of 243.51%. Applied Genetic Technologies Corporation has a consensus price target of $11.63, suggesting a potential upside of 227.46%. Given Inotek Pharmaceuticals Corporation’s higher probable upside, equities research analysts plainly believe Inotek Pharmaceuticals Corporation is more favorable than Applied Genetic Technologies Corporation.

Profitability

This table compares Inotek Pharmaceuticals Corporation and Applied Genetic Technologies Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Inotek Pharmaceuticals Corporation N/A -59.26% -33.15%
Applied Genetic Technologies Corporation 4.28% 1.45% 1.05%

Risk & Volatility

Inotek Pharmaceuticals Corporation has a beta of 2.76, meaning that its share price is 176% more volatile than the S&P 500. Comparatively, Applied Genetic Technologies Corporation has a beta of 1.68, meaning that its share price is 68% more volatile than the S&P 500.

Insider and Institutional Ownership

29.3% of Inotek Pharmaceuticals Corporation shares are owned by institutional investors. Comparatively, 54.8% of Applied Genetic Technologies Corporation shares are owned by institutional investors. 11.7% of Inotek Pharmaceuticals Corporation shares are owned by company insiders. Comparatively, 5.6% of Applied Genetic Technologies Corporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Inotek Pharmaceuticals Corporation and Applied Genetic Technologies Corporation’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Inotek Pharmaceuticals Corporation N/A N/A -$38.56 million ($1.53) -0.86
Applied Genetic Technologies Corporation $43.24 million 1.48 $8.04 million $0.08 44.38

Applied Genetic Technologies Corporation has higher revenue and earnings than Inotek Pharmaceuticals Corporation. Inotek Pharmaceuticals Corporation is trading at a lower price-to-earnings ratio than Applied Genetic Technologies Corporation, indicating that it is currently the more affordable of the two stocks.

Summary

Applied Genetic Technologies Corporation beats Inotek Pharmaceuticals Corporation on 9 of the 12 factors compared between the two stocks.

About Inotek Pharmaceuticals Corporation

Inotek Pharmaceuticals Corporation is a clinical-stage biopharmaceutical company. The Company is focused on the discovery, development and commercialization of therapies for glaucoma and other diseases of the eye. Its lead product candidate, trabodenoson, is a selective adenosine mimetic that the Company has designed to lower intraocular pressure (IOP) by restoring the eye’s natural pressure control mechanism. The Company developed this molecule to selectively stimulate a particular adenosine subreceptor in the eye with the effect of augmenting the intrinsic function of the eye’s trabecular meshwork (TM). Its product pipeline includes trabodenoson monotherapy delivered in an eye drop formulation, as well as a fixed-dose combination (FDC), of trabodenoson with latanoprost given once-daily (QD). The Company is evaluating the potential of trabodenoson to slow the loss of vision associated with glaucoma and degenerative retinal diseases.

About Applied Genetic Technologies Corporation

Applied Genetic Technologies Corporation is a clinical-stage biotechnology company. The Company develops gene therapy products designed to manage the lives of patients with severe diseases in ophthalmology. As of March 31, 2016, its product candidates included treatments for X-linked retinoschisis (XLRS), over two forms of achromatopsia (ACHM) and X-linked retinitis pigmentosa (XLRP). As of March 31, 2016, the Company was engaged in developing three discovery programs, targeting three indications based on its adeno-associated virus vector technologies. XLRS is an inherited retinal degenerative disease caused by mutations in the retinoschisis1 (RS1) gene. Achromatopsia is an inherited condition that is associated with visual acuity loss, extreme light sensitivity resulting in daytime blindness, and reduced or complete loss of color discrimination, achromatopsia is caused by mutations in any of several genes. The Company is also developing Alpha-1 Antitrypsin Deficiency (Alpha 1).

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