Head-To-Head Survey: Ironwood Pharmaceuticals (NASDAQ:IRWD) vs. Regulus Therapeutics (NASDAQ:RGLS)

Ironwood Pharmaceuticals (NASDAQ:IRWD) and Regulus Therapeutics (NASDAQ:RGLS) are both small-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, valuation, institutional ownership, analyst recommendations, earnings and risk.

Earnings and Valuation

This table compares Ironwood Pharmaceuticals and Regulus Therapeutics”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ironwood Pharmaceuticals	$400.57 million	1.72	-$1.00 billion	($6.79)	-0.65
Regulus Therapeutics	N/A	N/A	-$30.04 million	($1.46)	-1.08

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

Risk & Volatility

Ironwood Pharmaceuticals has a beta of 0.48, suggesting that its share price is 52% less volatile than the S&P 500. Comparatively, Regulus Therapeutics has a beta of 1.62, suggesting that its share price is 62% more volatile than the S&P 500.

Insider and Institutional Ownership

92.4% of Regulus Therapeutics shares are held by institutional investors. 12.9% of Ironwood Pharmaceuticals shares are held by insiders. Comparatively, 4.4% of Regulus Therapeutics shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings for Ironwood Pharmaceuticals and Regulus Therapeutics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ironwood Pharmaceuticals	0	3	4	0	2.57
Regulus Therapeutics	0	1	5	0	2.83

Ironwood Pharmaceuticals currently has a consensus price target of $12.17, indicating a potential upside of 176.52%. Regulus Therapeutics has a consensus price target of $10.80, indicating a potential upside of 587.90%. Given Regulus Therapeutics’ stronger consensus rating and higher possible upside, analysts clearly believe Regulus Therapeutics is more favorable than Ironwood Pharmaceuticals.

Profitability

This table compares Ironwood Pharmaceuticals and Regulus Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ironwood Pharmaceuticals	2.30%	-6.37%	4.61%
Regulus Therapeutics	N/A	-55.47%	-49.37%

Summary

Regulus Therapeutics beats Ironwood Pharmaceuticals on 7 of the 13 factors compared between the two stocks.

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.

About Regulus Therapeutics

Regulus Therapeutics Inc., a clinical-stage biopharmaceutical company, focuses on discovery and development of drugs that targets microRNAs to treat a range of diseases in the United States. Its product candidates include RGLS8429, an anti-miR next generation oligonucleotide targeting miR-17, which is in Phase 1b clinical trial for the treatment of autosomal dominant polycystic kidney disease. The company is also developing a pipeline of preclinical drug products for target organ-selective delivery strategies. Regulus Therapeutics Inc. was incorporated in 2007 and is headquartered in San Diego, California.