Alnylam Pharmaceuticals Inc versus Opko Health Inc Head to Head Compare

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This is a head to head compare of Alnylam Pharmaceuticals Inc (NASDAQ:ALNY) and Opko Health Inc (NASDAQ:OPK) . We will compare the two companies on revenue growth, earnings, revenue per employee, operating margins, free cash flow and valuation. The head to head compare assigns 100 points in total.

Before we dive into the analysis, we will look at the stock returns for each company over the last three months, six months and the last year. The stock returns do not impact the head to head compare scores which are focused on the fundamentals of each company, but ultimately stock returns are are still a critical piece to a full analysis and compare.

Stock Returns
Symbol 3-Months 6-Months One-Year Fundamentals
ALNY +30.4% +38.5% -29.1%
OPK -12.4% -19.4% -32.9%

Opko Health Inc has a substantially higher fundamental rating then Alnylam Pharmaceuticals Inc which has an impact on the head-to-head comparison. The CML Star Rating is an objective, quantifiable measure of a company's operating and financial condition. The rating is computed by measuring numerous elements of the company's current financial data and their associated changes over time.

Now, let's dive into the two companies to compare them.

➤ Income Statement
First we turn to the income statement and compare revenue, earnings and revenue per employee for both companies. We note that simple revenue comparisons do not impact the rating.

Opko Health Inc has substantially higher revenue in the last year than Alnylam Pharmaceuticals Inc. Raw revenue comps do not affect the head to head rating.

Both ALNY and OPK have negative earnings over the last year. But, ALNY has substantially larger losses than OPK and that difference has an impact on this head-to-head comparison.

Net Income

ALNY generates larger revenue per employee ($92,000) than OPK ($83,000), but not enough to affect the comparison rating.

Revenue per Employee
($ Millions)

➤ Margins
Next we create some derived metrics to compare the the amount of revenue earned per dollar of expense and the amount of free cash flow earned per dollar of revenue. Margins are one of the fairest ways to compare companies since they remove some of the bias of large versus small numbers.

Both Opko Health Inc and Alnylam Pharmaceuticals Inc generate an operating loss, although OPK shows a remarkably better operating margin.

Revenue per Dollar of Expense

OPK generates $0.03 in levered free cash flow for every $1 of revenue, while ALNY generates a cash flow loss of $-4.01 per $1 of revenue.

Free Cash Flow
per Dollar of Revenue

➤ Growth
Finally we compare the financial metrics related to growth: revenue growth rates and price to sales.

Both companies are growing revenue. Opko Health Inc is growing revenue massively faster than Alnylam Pharmaceuticals Inc.

Revenue Growth

For every $1 in revenue, the stock market prices in $85.46 in market cap for ALNY and $3.94 in market cap for OPK.

Price to Sales

Opko Health Inc (NASDAQ:OPK)
Alnylam Pharmaceuticals Inc (NASDAQ:ALNY) : 100 to 0