BioCryst Pharmaceuticals (NASDAQ:BCRX) vs. Merck KGaA (OTCMKTS:MKKGY) Financial Contrast

Merck KGaA (OTCMKTS:MKKGY) and BioCryst Pharmaceuticals (NASDAQ:BCRX) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, earnings, analyst recommendations, valuation and dividends.

Profitability

This table compares Merck KGaA and BioCryst Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Merck KGaA	13.49%	9.78%	5.75%
BioCryst Pharmaceuticals	-6.41%	N/A	-1.78%

Valuation and Earnings

This table compares Merck KGaA and BioCryst Pharmaceuticals”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Merck KGaA	$22.57 billion	0.77	$3.00 billion	$2.51	10.68
BioCryst Pharmaceuticals	$599.82 million	2.40	-$88.88 million	($0.05)	-137.00

Merck KGaA has higher revenue and earnings than BioCryst Pharmaceuticals. BioCryst Pharmaceuticals is trading at a lower price-to-earnings ratio than Merck KGaA, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Merck KGaA has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500. Comparatively, BioCryst Pharmaceuticals has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for Merck KGaA and BioCryst Pharmaceuticals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Merck KGaA	0	2	0	0	2.00
BioCryst Pharmaceuticals	1	3	10	0	2.64

BioCryst Pharmaceuticals has a consensus price target of $19.33, indicating a potential upside of 182.24%. Given BioCryst Pharmaceuticals’ stronger consensus rating and higher possible upside, analysts clearly believe BioCryst Pharmaceuticals is more favorable than Merck KGaA.

Institutional and Insider Ownership

0.1% of Merck KGaA shares are held by institutional investors. Comparatively, 85.9% of BioCryst Pharmaceuticals shares are held by institutional investors. 5.1% of BioCryst Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

About Merck KGaA

Merck KGaA operates as a science and technology company in Germany. It operates through Life Science, Healthcare, and Electronics segments. The company’s Life Science segment offers tools, chemicals, and equipment for academic labs, biotech, and pharmaceutical manufacturers, as well as industrial sector. This segment provides drug manufacturers with process development expertise and technologies, such as continuous bioprocessing; testing kits and services; reagents and services; testing solutions that analyze air, water, and soil; and testing and tools, as well as products that help test nutritional value and identify quality inconsistencies. Its Healthcare segment discovers, develops, manufacturers, and markets prescription drugs and biopharmaceuticals for the treatment of oncology, neurology and immunology, fertility, endocrinology, as well as cardiovascular, diabetes, thyroid disorders, and multiple sclerosis; general medicines; and injection device and disease monitoring software. The Electronics segment supplies materials for the semiconductor and display industries and surface design, such as delivery systems and services, as well as surface solutions, including cosmetics, effect pigments, and functional solutions. In addition, it has in-licensing agreement with Debiopharm International SA for developing and commercializing drug candidates for the treatment of head and neck cancer; Jiangsu Hengrui Pharmaceuticals Co. Ltd. for developing, manufacturing, and commercializing drug candidates for the treatment of metastatic colorectal cancer; and Abbisko Therapeutics Co. Ltd. for developing and commercializing of drug candidates for the treatment of tenosynovial giant cell tumor, as well as license and collaboration agreement with Merck KGaA to discover two targeted protein degraders against critical oncogenic proteins. The company was founded in 1668 and is headquartered in Darmstadt, Germany. Merck KGaA operates as a subsidiary of E. Merck KGaA.

About BioCryst Pharmaceuticals

BioCryst Pharmaceuticals, Inc., a biotechnology company, develops oral small-molecule and protein therapeutics to treat rare diseases. The company markets peramivir injection, an intravenous neuraminidase inhibitor for the treatment of acute uncomplicated influenza under the RAPIVAB, RAPIACTA, and PERAMIFLU names; and ORLADEYO, an oral serine protease inhibitor to treat hereditary angioedema. It is also developing BCX10013, an oral factor D inhibitor for complement-mediated diseases. The company has collaborations and in-license relationships with the Torii Pharmaceutical Co., Ltd.; Seqirus UK Limited; Shionogi & Co., Ltd.; Green Cross Corporation; National Institute of Allergy and Infectious Diseases; Biomedical Advanced Research and Development Authority; the U.S. Department of Health and Human Services; and The University of Alabama at Birmingham, as well as Albert Einstein College of Medicine of Yeshiva University and Industrial Research, Ltd. BioCryst Pharmaceuticals, Inc. was founded in 1986 and is headquartered in Durham, North Carolina.