Critical Analysis: Intrexon (XON) & PRA Health Sciences (PRAH)

Intrexon (NYSE: XON) and PRA Health Sciences (NASDAQ:PRAH) are both mid-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, valuation, risk, earnings, institutional ownership and dividends.

Volatility and Risk

Intrexon has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500. Comparatively, PRA Health Sciences has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500.

Earnings and Valuation

This table compares Intrexon and PRA Health Sciences’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Intrexon $230.98 million 9.27 -$117.01 million ($0.92) -18.01
PRA Health Sciences $2.26 billion 2.70 $86.92 million $3.20 29.74

PRA Health Sciences has higher revenue and earnings than Intrexon. Intrexon is trading at a lower price-to-earnings ratio than PRA Health Sciences, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

83.6% of Intrexon shares are held by institutional investors. Comparatively, 99.1% of PRA Health Sciences shares are held by institutional investors. 48.2% of Intrexon shares are held by company insiders. Comparatively, 0.9% of PRA Health Sciences shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Intrexon and PRA Health Sciences, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Intrexon 0 2 4 0 2.67
PRA Health Sciences 0 1 10 0 2.91

Intrexon presently has a consensus price target of $34.67, indicating a potential upside of 109.21%. PRA Health Sciences has a consensus price target of $95.18, indicating a potential upside of 0.02%. Given Intrexon’s higher probable upside, equities analysts plainly believe Intrexon is more favorable than PRA Health Sciences.

Profitability

This table compares Intrexon and PRA Health Sciences’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Intrexon -57.66% -14.96% -9.38%
PRA Health Sciences 4.07% 23.06% 6.84%

Summary

PRA Health Sciences beats Intrexon on 10 of the 14 factors compared between the two stocks.

About Intrexon

Intrexon Corporation operates in the synthetic biology field in the United States. The company, through a suite of proprietary and complementary technologies, designs, builds, and regulates gene programs, which are DNA sequences that consist of key genetic components. Its technologies include UltraVector gene design and fabrication platform, and its associated library of modular DNA components; Cell Systems Informatics; RheoSwitch inducible gene switch; AttSite Recombinases; Protein Engineering; Laser-Enabled Analysis and Processing; and ActoBiotics and AdenoVerse technology platforms. The company also provides reproductive technologies and other genetic processes to cattle breeders and producers; biological insect control solutions; technologies for non-browning apple without the use of any flavor-altering chemical or antioxidant additives; commercial aquaculture products; genetic preservation and cloning technologies; genetically engineered swine for medical and genetic research; and artwork, children's toys, and novelty goods that are derived from living organisms or enabled by synthetic biology. It serves health, food, energy, environment, and consumer markets. Intrexon Corporation has collaboration and license agreements with ZIOPHARM Oncology, Inc.; Oragenics, Inc.; Fibrocell Science, Inc.; Genopaver, LLC; S & I Ophthalmic, LLC; OvaXon, LLC; Intrexon Energy Partners, LLC; Persea Bio, LLC; Ares Trading S.A.; Intrexon Energy Partners II, LLC; Intrexon T1D Partners, LLC; AquaBounty Technologies, Inc.; Thrive Agrobiotics, Inc.; Exotech Bio, Inc.; Relieve Genetics, Inc.; AD Skincare, Inc.; Genten Therapeutics, Inc.; and CRS Bio, Inc. The company was formerly known as Genomatix Ltd. and changed its name to Intrexon Corporation in 2005. Intrexon Corporation was founded in 1998 and is based in Germantown, Maryland.

About PRA Health Sciences

PRA Health Sciences, Inc., a contract research organization, provides outsourced clinical development services to the biotechnology and pharmaceutical industries worldwide. The company operates in two segments, Clinical Research and Data Solutions. The Clinical Research segment offers product registration services, including clinical trial management, project management, regulatory affairs, therapeutic expertise, clinical operations, data and programming, safety and risk management, biostatistics and medical writing, quality assurance, and late phase services. It also provides strategic solutions, such as embedded, functional services provider, staff augmentation, and custom-built development solutions, as well as commercialization services; and early development services for Phase I and Phase IIa studies, and bioanalytical analysis. The Data Solutions segment offers data, analytics, technology, and consulting solutions to the life sciences market. Its services include targeting and compensation services, and pharmaceutical audit suite; brand analytics, managed markets, commercial effectiveness, and scientific studies/clinical hubs; and technology-enabled products and services. The company conducts clinical trials in the areas of pharmaceutical development, including oncology, central nervous system, inflammation, and infectious diseases. The company was formerly known as PRA Global Holdings, Inc. and changed its name to PRA Health Sciences, Inc. in July 2014. PRA Health Sciences, Inc. was founded in 1976 and is headquartered in Raleigh, North Carolina.

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