Contrasting Intercept Pharmaceuticals (NASDAQ:ICPT) & Aerovate Therapeutics (NASDAQ:AVTE)

Intercept Pharmaceuticals (NASDAQ:ICPTGet Rating) and Aerovate Therapeutics (NASDAQ:AVTEGet Rating) are both small-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, dividends, analyst recommendations, risk and valuation.

Valuation & Earnings

This table compares Intercept Pharmaceuticals and Aerovate Therapeutics’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Intercept Pharmaceuticals $363.47 million 1.14 -$91.43 million ($2.25) -6.21
Aerovate Therapeutics N/A N/A -$22.96 million ($24.58) -0.64

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

Profitability

This table compares Intercept Pharmaceuticals and Aerovate Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Intercept Pharmaceuticals -18.44% N/A -16.17%
Aerovate Therapeutics N/A -25.25% -21.12%

Analyst Ratings

This is a summary of recent ratings and target prices for Intercept Pharmaceuticals and Aerovate Therapeutics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Intercept Pharmaceuticals 1 6 5 0 2.33
Aerovate Therapeutics 0 0 5 0 3.00

Intercept Pharmaceuticals currently has a consensus price target of $27.58, indicating a potential upside of 97.45%. Aerovate Therapeutics has a consensus price target of $22.67, indicating a potential upside of 43.82%. Given Intercept Pharmaceuticals’ higher possible upside, equities research analysts clearly believe Intercept Pharmaceuticals is more favorable than Aerovate Therapeutics.

Insider & Institutional Ownership

83.4% of Intercept Pharmaceuticals shares are owned by institutional investors. Comparatively, 92.1% of Aerovate Therapeutics shares are owned by institutional investors. 17.9% of Intercept Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Intercept Pharmaceuticals beats Aerovate Therapeutics on 6 of the 11 factors compared between the two stocks.

About Intercept Pharmaceuticals

(Get Rating)

Intercept Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the development and commercialization of therapeutics to treat progressive non-viral liver diseases in the United States, Europe, and Canada. The company markets Ocaliva, a farnesoid X receptor agonist used for the treatment of primary biliary cholangitis in combination with ursodeoxycholic acid in adults. It is also developing Ocaliva for various indications, including nonalcoholic steatohepatitis; and other product candidates in various stages of clinical and preclinical development. The company has a license agreement with Aralez Pharmaceuticals Canada Inc. to develop and commercialize bezafibrate in the United States. It markets its products through an internal commercial organization and third-party distributors. The company was incorporated in 2002 and is headquartered in New York, New York.

About Aerovate Therapeutics

(Get Rating)

Aerovate Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on the development of drugs that enhance the lives of patients with rare cardiopulmonary diseases in the United States. The company focuses on advancing AV-101, a dry powder inhaled formulation of imatinib for the treatment of pulmonary arterial hypertension, which is in Phase 2b/Phase 3 trial. Aerovate Therapeutics, Inc. was incorporated in 2018 and is headquartered in Waltham, Massachusetts.

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