Generic (NASDAQ: GNFT – Get a rating) and Aerie Pharmaceuticals (NASDAQ:AERI – Get a rating) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.
Profitability
This table compares the net margins, return on equity and return on assets of Genfit and Aerie Pharmaceuticals.
| Net margins | Return on equity | return on assets | |
| Genfit | N / A | N / A | N / A |
| Aerie Pharmaceuticals | -34.20% | N / A | -11.30% |
Analyst Notes
This is a summary of recent ratings and target prices for Genfit and Aerie Pharmaceuticals, as reported by MarketBeat.
| Sales Ratings | Hold odds | Buy reviews | Strong buy odds | Rating | |
| Genfit | 0 | 0 | 3 | 0 | 3.00 |
| Aerie Pharmaceuticals | 0 | 1 | 3 | 0 | 2.75 |
Genfit currently has a consensus target price of $9.00, indicating a potential upside of 163.93%. Aerie Pharmaceuticals has a consensus target price of $20.78, indicating a potential upside of 239.46%. Given Aerie Pharmaceuticals’ possible higher upside, analysts clearly believe that Aerie Pharmaceuticals is more favorable than Genfit.
Valuation and benefits
This table compares the gross revenue, earnings per share (EPS), and valuation of Genfit and Aerie Pharmaceuticals.
| Gross revenue | Price/sales ratio | Net revenue | Earnings per share | Price/earnings ratio | |
| Genfit | $101.25 million | 1.68 | $79.57 million | N / A | N / A |
| Aerie Pharmaceuticals | $194.13 million | 1.53 | -74.81 million dollars | ($1.50) | -4.08 |
Genfit has higher revenues, but lower revenues than Aerie Pharmaceuticals.
Volatility and risk
Genfit has a beta of 1.36, suggesting its stock price is 36% more volatile than the S&P 500. Comparatively, Aerie Pharmaceuticals has a beta of 0.75, suggesting its stock price is 25% less volatile than the S&P 500.
Institutional and insider ownership
3.5% of Genfit shares are held by institutional investors. 10.3% of Aerie Pharmaceuticals shares are held by insiders. Strong institutional ownership indicates that endowments, large fund managers, and hedge funds believe a stock is poised for long-term growth.
Summary
Genfit beats Aerie Pharmaceuticals on 7 out of 10 factors compared between the two stocks.
Genfit company profile (Get a rating)
Genfit SA, a biopharmaceutical company, discovers and develops drug candidates and diagnostic solutions for metabolic and hepatic diseases. The Company’s products include Elafibranor, which is in a Phase 3 clinical trial to treat patients with primary biliary cholangitis. It is also involved in the development of NIS4 technology for the diagnosis of non-alcoholic steatohepatitis (NASH) and fibrosis; GNS561, which is in a phase 1b/2 trial to treat patients with cholangiocarcinoma (CCA); and Nitazoxanide, which is in a phase 1 trial to treat acute-on-chronic liver failure. The company has a licensing agreement with Labcorp for the commercialization of NASHnext, a blood-based molecular diagnostic test; and with Genoscience Pharma to develop and commercialize the investigational treatment GNS561 for ACC. Genfit SA was incorporated in 1999 and is headquartered in Loos, France.
Aerie Pharmaceuticals Company Profile (Get a rating)
Aerie Pharmaceuticals, Inc., a pharmaceutical company, is focused on the discovery, development and commercialization of ophthalmic therapies for open-angle glaucoma, dry eye disease, diabetic macular edema and wet age-related macular degeneration in the USA. Its products include Rhopressa, a once-daily eye drop to reduce elevated intraocular pressure (IOP) in patients with open-angle glaucoma or ocular hypertension; and Rocklatan, a once-daily fixed-dose combination of Rhopressa and latanopros to lower IOP to treat patients with open-angle glaucoma or ocular hypertension. The company is also developing AR-15512 to treat the signs and symptoms of dry eye; and the AR-1105 and AR-14034 SR extended-release implants focused on retinal disease. It has entered into a collaborative research, development and license agreement with DSM Biomedical. Aerie Pharmaceuticals, Inc. was incorporated in 2005 and is headquartered in Durham, North Carolina.
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