Critical Analysis: Avadel Pharmaceuticals (NASDAQ:AVDL) versus Benitec Biopharma (NASDAQ:BNTC)
by Michael Walen · The Markets DailyAvadel Pharmaceuticals (NASDAQ:AVDL – Get Free Report) and Benitec Biopharma (NASDAQ:BNTC – Get Free Report) are both small-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, dividends, analyst recommendations, risk, profitability and institutional ownership.
Insider & Institutional Ownership
69.2% of Avadel Pharmaceuticals shares are owned by institutional investors. Comparatively, 52.2% of Benitec Biopharma shares are owned by institutional investors. 4.8% of Avadel Pharmaceuticals shares are owned by company insiders. Comparatively, 4.3% of Benitec Biopharma shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Avadel Pharmaceuticals and Benitec Biopharma’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Avadel Pharmaceuticals | -111.64% | -122.64% | -61.29% |
| Benitec Biopharma | N/A | -90.14% | -75.25% |
Analyst Recommendations
This is a breakdown of current ratings and target prices for Avadel Pharmaceuticals and Benitec Biopharma, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Avadel Pharmaceuticals | 0 | 0 | 7 | 0 | 3.00 |
| Benitec Biopharma | 0 | 0 | 5 | 1 | 3.17 |
Avadel Pharmaceuticals presently has a consensus price target of $24.57, suggesting a potential upside of 82.55%. Benitec Biopharma has a consensus price target of $22.60, suggesting a potential upside of 105.83%. Given Benitec Biopharma’s stronger consensus rating and higher possible upside, analysts plainly believe Benitec Biopharma is more favorable than Avadel Pharmaceuticals.
Earnings and Valuation
This table compares Avadel Pharmaceuticals and Benitec Biopharma”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Avadel Pharmaceuticals | $95.15 million | 13.59 | -$160.28 million | ($1.86) | -7.23 |
| Benitec Biopharma | $80,000.00 | 1,285.76 | -$21.75 million | ($1.91) | -5.75 |
Benitec Biopharma has lower revenue, but higher earnings than Avadel Pharmaceuticals. Avadel Pharmaceuticals is trading at a lower price-to-earnings ratio than Benitec Biopharma, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Avadel Pharmaceuticals has a beta of 1.5, indicating that its share price is 50% more volatile than the S&P 500. Comparatively, Benitec Biopharma has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500.
Summary
Benitec Biopharma beats Avadel Pharmaceuticals on 8 of the 15 factors compared between the two stocks.
About Avadel Pharmaceuticals
Avadel Pharmaceuticals plc operates as a biopharmaceutical company in the United States. Its lead product candidate is LUMRYZ, a formulation of sodium oxybate, which is in a Phase 3 clinical trial for the treatment of excessive daytime sleepiness or cataplexy in adults with narcolepsy. The company was formerly known as Flamel Technologies SA and changed its name to Avadel Pharmaceuticals plc in January 2017. Avadel Pharmaceuticals plc was incorporated in 2015 and is headquartered in Dublin, Ireland.
About Benitec Biopharma
Benitec Biopharma Inc., a clinical-stage biotechnology company, focuses on the development of novel genetic medicines. The company develops DNA-directed RNA interference-based therapeutics for chronic and life-threatening human conditions. It is developing BB-301, an adeno-associated virus based gene therapy agent for treating oculopharyngeal muscular dystrophy. The company was incorporated in 1995 and is headquartered in Hayward, California.