Deciphera Pharmaceuticals (NASDAQ:DCPH) and Bicycle Therapeutics (NASDAQ:BCYC) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, profitability, earnings, valuation, analyst recommendations, risk and institutional ownership.
Profitability
This table compares Deciphera Pharmaceuticals and Bicycle Therapeutics' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Deciphera Pharmaceuticals | N/A | -45.02% | -40.12% |
| Bicycle Therapeutics | -321.26% | -42.73% | -28.77% |
Analyst Ratings
This is a summary of current recommendations and price targets for Deciphera Pharmaceuticals and Bicycle Therapeutics, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Deciphera Pharmaceuticals | 0 | 3 | 7 | 0 | 2.70 |
| Bicycle Therapeutics | 0 | 0 | 4 | 0 | 3.00 |
Deciphera Pharmaceuticals currently has a consensus target price of $70.30, suggesting a potential upside of 60.47%. Bicycle Therapeutics has a consensus target price of $38.00, suggesting a potential upside of 33.90%. Given Deciphera Pharmaceuticals' higher probable upside, research analysts clearly believe Deciphera Pharmaceuticals is more favorable than Bicycle Therapeutics.
Valuation and Earnings
This table compares Deciphera Pharmaceuticals and Bicycle Therapeutics' top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Deciphera Pharmaceuticals | $25 million | 100.98 | $-192,260,000.00 | ($4.48) | -9.78 |
| Bicycle Therapeutics | $13.80 million | 47.49 | $-30,610,000.00 | ($2.77) | -10.25 |
Bicycle Therapeutics has lower revenue, but higher earnings than Deciphera Pharmaceuticals. Bicycle Therapeutics is trading at a lower price-to-earnings ratio than Deciphera Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Deciphera Pharmaceuticals has a beta of 1.49, indicating that its stock price is 49% more volatile than the S&P 500. Comparatively, Bicycle Therapeutics has a beta of -0.21, indicating that its stock price is 121% less volatile than the S&P 500.
Insider and Institutional Ownership
73.6% of Deciphera Pharmaceuticals shares are owned by institutional investors. Comparatively, 42.7% of Bicycle Therapeutics shares are owned by institutional investors. 7.0% of Deciphera Pharmaceuticals shares are owned by insiders. Comparatively, 26.3% of Bicycle Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
Deciphera Pharmaceuticals beats Bicycle Therapeutics on 8 of the 14 factors compared between the two stocks.
