Financial Analysis: Amicus Therapeutics (NASDAQ:FOLD) vs. Biofrontera (NASDAQ:BFRI)

Amicus Therapeutics (NASDAQ:FOLD) and Biofrontera (NASDAQ:BFRI) are both medical companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.

Institutional and Insider Ownership

10.1% of Biofrontera shares are owned by institutional investors. 2.2% of Amicus Therapeutics shares are owned by insiders. Comparatively, 0.2% of Biofrontera shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Amicus Therapeutics has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500. Comparatively, Biofrontera has a beta of 0.38, suggesting that its share price is 62% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Amicus Therapeutics and Biofrontera, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amicus Therapeutics	0	2	7	0	2.78
Biofrontera	0	0	1	0	3.00

Amicus Therapeutics presently has a consensus price target of $16.88, suggesting a potential upside of 70.63%. Biofrontera has a consensus price target of $7.00, suggesting a potential upside of 604.08%. Given Biofrontera’s stronger consensus rating and higher probable upside, analysts plainly believe Biofrontera is more favorable than Amicus Therapeutics.

Valuation and Earnings

This table compares Amicus Therapeutics and Biofrontera”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amicus Therapeutics	$493.67 million	5.99	-$151.58 million	($0.34)	-29.09
Biofrontera	$35.36 million	0.22	-$20.13 million	($2.26)	-0.44

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

Profitability

This table compares Amicus Therapeutics and Biofrontera’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Amicus Therapeutics	-21.21%	-15.97%	-3.17%
Biofrontera	-36.31%	-565.73%	-96.64%

Summary

Amicus Therapeutics beats Biofrontera on 9 of the 14 factors compared between the two stocks.

About Amicus Therapeutics

Amicus Therapeutics, Inc., a biotechnology company, focuses on discovering, developing, and delivering medicines for rare diseases. Its commercial product and product candidates include Galafold, an oral precision medicine for the treatment of adults with a confirmed diagnosis of Fabry disease and an amenable galactosidase alpha gene variant; and Pombiliti + Opfolda, for the treatment of late onset. It has collaboration and license agreements with the University of Pennsylvania to research and develop parvovirus gene therapy products; and GlaxoSmithKline. Amicus Therapeutics, Inc. was incorporated in 2002 and is headquartered in Princeton, New Jersey.

About Biofrontera

Biofrontera Inc., a biopharmaceutical company, engages in the commercialization of pharmaceutical products for the treatment of dermatological conditions in the United States. The company's products are used for the treatment of actinic keratoses, which are pre-cancerous skin lesions, as well as impetigo, a bacterial skin infection. It offers Ameluz, a prescription drug for use in combination with the RhodoLED lamp series, for photodynamic therapy for the lesion-directed and field-directed treatment of actinic keratosis of mild-to-moderate severity on the face and scalp. The company also provides Xepi, a topical non-fluorinated quinolone that inhibits bacterial growth for the treatment of impetigo. The company was incorporated in 2015 and is headquartered in Woburn, Massachusetts.