Neurocrine Biosciences (NASDAQ:NBIX) and Profound Medical (NASDAQ:PROF) Head-To-Head Review

Neurocrine Biosciences (NASDAQ:NBIX) and Profound Medical (NASDAQ:PROF) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.

Risk & Volatility

Neurocrine Biosciences has a beta of 0.28, indicating that its share price is 72% less volatile than the S&P 500. Comparatively, Profound Medical has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500.

Insider & Institutional Ownership

92.6% of Neurocrine Biosciences shares are held by institutional investors. Comparatively, 47.9% of Profound Medical shares are held by institutional investors. 4.8% of Neurocrine Biosciences shares are held by company insiders. Comparatively, 1.5% of Profound Medical shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Neurocrine Biosciences and Profound Medical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Neurocrine Biosciences	15.95%	15.82%	11.00%
Profound Medical	-275.16%	-86.18%	-70.55%

Earnings & Valuation

This table compares Neurocrine Biosciences and Profound Medical”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Neurocrine Biosciences	$2.68 billion	5.05	$341.30 million	$4.18	32.49
Profound Medical	$10.68 million	28.68	-$27.82 million	($1.34)	-6.30

Neurocrine Biosciences has higher revenue and earnings than Profound Medical. Profound Medical is trading at a lower price-to-earnings ratio than Neurocrine Biosciences, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations and price targets for Neurocrine Biosciences and Profound Medical, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Neurocrine Biosciences	0	6	17	0	2.74
Profound Medical	1	0	1	0	2.00

Neurocrine Biosciences presently has a consensus price target of $175.20, suggesting a potential upside of 29.02%. Profound Medical has a consensus price target of $12.00, suggesting a potential upside of 42.18%. Given Profound Medical’s higher probable upside, analysts clearly believe Profound Medical is more favorable than Neurocrine Biosciences.

Summary

Neurocrine Biosciences beats Profound Medical on 11 of the 14 factors compared between the two stocks.

About Neurocrine Biosciences

Neurocrine Biosciences, Inc. discovers, develops, and markets pharmaceuticals for neurological, neuroendocrine, and neuropsychiatric disorders in the United States and internationally. The company’s products include INGREZZA for tardive dyskinesia and chorea associated with Huntington’s disease; ALKINDI for adrenal insufficiency; Efmody capsules for classic congenital adrenal hyperplasia; Orilissa tablets for endometriosis; and Oriahnn capsules to treat uterine fibroids. Its product candidates in clinical development include valbenazine to treat dyskinetic cerebral palsy in pediatrics and adults; NBI-921352 to treat developmental and epileptic encephalopathy syndrome in pediatrics and adults; NBI-827104 to treat epileptic encephalopathy with continuous spike-and-wave during sleep; NBI-1076986 to treat movement disorders; crinecerfront to treat congenital adrenal hyperplasia in adults and children; EFMODY to treat congenital adrenal hyperplasia and adrenal insufficiency in adults; valbenazine for the adjunctive treatment of schizophrenia; NBI-1065845 for the treatment of inadequate response to treatment in major depressive disorder; luvadaxistat to treat cognitive impairment related to schizophrenia; NBI-1117568 for the treatment of schizophrenia; NBI-1070770 to treat major depressive disorder; NBI-1117570 for the treatment of symptoms of psychosis and cognition in neurological and neuropsychiatric conditions; and NBI-1117569, NBI-1117567, and NBI-1065890 to treat CNS indications. The company also has license and collaboration agreements with Heptares Therapeutics Limited; Takeda Pharmaceutical Company Limited; Idorsia Pharmaceuticals Ltd; Xenon Pharmaceuticals Inc.; Voyager Therapeutics, Inc.; BIAL Portela & Ca, S.A.; Mitsubishi Tanabe Pharma Corporation; and AbbVie Inc. The company was incorporated in 1992 and is headquartered in San Diego, California.

About Profound Medical

Profound Medical Corp., together with its subsidiaries, operates as a commercial-stage medical device company that develops and markets incision-free therapeutic systems for the image guided ablation of diseased tissue in Canada, Germany, the United States, and Finland. Its lead product TULSA-PRO system combines magnetic resonance imaging(MRI), robotically-driven transurethral sweeping action/thermal ultrasound and closed-loop temperature feedback control to provide precise, flexible, and durable ablation of a surgeon defined region of prostate and protect the urethra and rectum. The company also offers Sonalleve, which combines real-time MRI and thermometry for the treatment of uterine fibroids, adenomyotic tissue, palliative pain treatment of bone metastases, osteoid osteoma, and management of benign tumors. Profound Medical Corp. is headquartered in Mississauga, Canada.