Incyte (NASDAQ: INCY) and Puma Biotechnology (NASDAQ:PBYI) are both healthcare companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, profitability, risk, analyst recommendations and dividends.
Valuation and Earnings
This table compares Incyte and Puma Biotechnology’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Incyte||$1.54 billion||12.10||-$313.14 million||($1.56)||-56.28|
|Puma Biotechnology||N/A||N/A||-$276.01 million||($8.19)||-8.33|
Puma Biotechnology has lower revenue, but higher earnings than Incyte. Incyte is trading at a lower price-to-earnings ratio than Puma Biotechnology, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Incyte has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500. Comparatively, Puma Biotechnology has a beta of 0.18, suggesting that its stock price is 82% less volatile than the S&P 500.
This table compares Incyte and Puma Biotechnology’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
89.4% of Incyte shares are held by institutional investors. 17.7% of Incyte shares are held by insiders. Comparatively, 21.1% of Puma Biotechnology shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This is a summary of current ratings for Incyte and Puma Biotechnology, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Incyte currently has a consensus target price of $142.65, suggesting a potential upside of 62.47%. Puma Biotechnology has a consensus target price of $110.56, suggesting a potential upside of 61.99%. Given Incyte’s higher possible upside, equities analysts plainly believe Incyte is more favorable than Puma Biotechnology.
Incyte beats Puma Biotechnology on 8 of the 13 factors compared between the two stocks.
Incyte Company Profile
Incyte Corporation is a biopharmaceutical company focused on the discovery, development and commercialization of therapeutics. Its portfolio includes compounds in various stages, ranging from preclinical to late-stage development, and commercialized products, such as JAKAFI (ruxolitinib) and ICLUSIG (ponatinib). JAKAFI (ruxolitinib) is indicated for the treatment of patients with intermediate or high risk myelofibrosis (MF) and for the treatment of patients with polycythemia vera (PV) having had an inadequate response to or are intolerant of hydroxyurea. As of December 31, 2016, the Food and Drug Administration had granted JAKAFI orphan drug status for MF, PV and essential thrombocythemia. The primary target for ICLUSIG is B Cell Receptor-ABL, an abnormal tyrosine kinase that is expressed in chronic myeloid leukemia and Philadelphia-chromosome positive acute lymphoblastic leukemia. The Company also has a portfolio of selective janus associated kinases 1 (JAK1) inhibitors.
Puma Biotechnology Company Profile
Puma Biotechnology, Inc. is a biopharmaceutical company that focuses on the development and commercialization of products for the treatment of cancer. The Company focuses on in-licensing the development and commercialization rights to over three drug candidates, including PB272 (neratinib (oral)), PB272 (neratinib (intravenous)) and PB357. Neratinib is a potent irreversible tyrosine kinase inhibitor (TKI) that blocks signal transduction through the epidermal growth factor receptors (EGFRs), HER1, HER2 and HER4. Its initial focus is on the development of neratinib as an oral treatment of patients with HER2 positive metastatic breast cancer. It focuses on developing neratinib as an intravenously administered agent. The intravenous version of neratinib resulted in exposure levels of neratinib in pre-clinical models. Its product candidate, PB357, is an orally administered agent that is an irreversible TKI that blocks signal transduction through the epidermal growth factor receptors.
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