Nuvalent (NASDAQ:NUVL – Get Free Report) and Ironwood Pharmaceuticals (NASDAQ:IRWD – Get Free Report) are both medical companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, analyst recommendations, earnings and risk.
Risk & Volatility
Nuvalent has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500. Comparatively, Ironwood Pharmaceuticals has a beta of 0.41, meaning that its stock price is 59% less volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Nuvalent and Ironwood Pharmaceuticals, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nuvalent | 1 | 1 | 10 | 1 | 2.85 |
| Ironwood Pharmaceuticals | 0 | 3 | 3 | 0 | 2.50 |
Valuation and Earnings
This table compares Nuvalent and Ironwood Pharmaceuticals”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nuvalent | N/A | N/A | -$126.22 million | ($3.47) | -27.31 |
| Ironwood Pharmaceuticals | $442.73 million | 1.28 | -$1.00 billion | ($0.03) | -118.00 |
Nuvalent has higher earnings, but lower revenue than Ironwood Pharmaceuticals. Ironwood Pharmaceuticals is trading at a lower price-to-earnings ratio than Nuvalent, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
97.3% of Nuvalent shares are owned by institutional investors. 12.5% of Nuvalent shares are owned by insiders. Comparatively, 12.9% of Ironwood 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.
Profitability
This table compares Nuvalent and Ironwood Pharmaceuticals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nuvalent | N/A | -28.63% | -27.15% |
| Ironwood Pharmaceuticals | -0.65% | -0.96% | 0.74% |
Summary
Nuvalent beats Ironwood Pharmaceuticals on 8 of the 14 factors compared between the two stocks.
About Nuvalent
Nuvalent, Inc., a clinical stage biopharmaceutical company, engages in the development of therapies for patients with cancer. Its lead product candidates are NVL-520, a novel ROS1-selective inhibitor to address the clinical challenges of emergent treatment resistance, central nervous system (CNS)-related adverse events, and brain metastases that may limit the use of ROS1 tyrosine kinase inhibitors (TKIs) for patients with ROS proto-oncogene 1 (ROS1)-positive non-small cell lung cancer (NSCLC) which is under the phase 2 portion of the ARROS-1 Phase 1/2 clinical trial; NVL-655, a brain-penetrant ALK-selective inhibitor, to address the clinical challenges of emergent treatment resistance, CNS-related adverse events, and brain metastases that might limit the use of first-, second-, and third-generation ALK inhibitors that is under the phase 2 portion of the ALKOVE-1 Phase 1/2 clinical trial; and NVL-330, a brain-penetrant human epidermal growth factor receptor 2 (HER2)-selective inhibitor designed to treat tumors driven by HER2ex20, brain metastases, and avoiding treatment-limiting adverse events including due to off-target inhibition of wild-type EGFR, which is expected to initiate phase 1 trial. The company was incorporated in 2017 and is headquartered in Cambridge, Massachusetts.
About Ironwood Pharmaceuticals
Ironwood Pharmaceuticals, Inc., a healthcare company, focuses on the development and commercialization of gastrointestinal (GI) products. It markets linaclotide, a guanylate cyclase type-C (GC-C) agonist for the treatment of adults suffering from irritable bowel syndrome with constipation or chronic idiopathic constipation under the LINZESS name in the United States, Mexico, Japan, Saudi Arabia, and China, as well as under the CONSTELLA name in the Canada and European countries. The company is also developing IW-3300, a GC-C agonist for the treatment of visceral pain conditions, including interstitial cystitis/bladder pain syndrome and endometriosis; Apraglutide, a next-generation, long-acting synthetic peptide analog of glucagon-like peptide-2, as a differentiated therapeutic for rare diseases, including short bowel syndrome dependent on parenteral support and acute graft versus host disease; and CNP-104, an immune nanoparticle for the treatment of primary biliary cholangitis. The company has strategic partnerships with AbbVie Inc., AstraZeneca AB, and Astellas Pharma Inc. for the development and commercialization of linaclotide. The company was formerly known as Microbia, Inc. and changed its name to Ironwood Pharmaceuticals, Inc. in April 2008. Ironwood Pharmaceuticals, Inc. was incorporated in 1998 and is headquartered in Boston, Massachusetts.
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