Neurocrine Biosciences (NASDAQ:NBIX) and Iovance Biotherapeutics (NASDAQ:IOVA) are both mid-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, risk, analyst recommendations, institutional ownership, valuation and earnings.
Risk & Volatility
Neurocrine Biosciences has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500. Comparatively, Iovance Biotherapeutics has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500.
Earnings and Valuation
This table compares Neurocrine Biosciences and Iovance Biotherapeutics' revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Neurocrine Biosciences | $788.10 million | 11.35 | $37.01 million | $0.39 | 242.56 |
| Iovance Biotherapeutics | N/A | N/A | $-197,560,000.00 | ($1.59) | -16.24 |
Neurocrine Biosciences has higher revenue and earnings than Iovance Biotherapeutics. Iovance Biotherapeutics 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 breakdown of current recommendations and price targets for Neurocrine Biosciences and Iovance Biotherapeutics, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Neurocrine Biosciences | 0 | 7 | 13 | 0 | 2.65 |
| Iovance Biotherapeutics | 0 | 1 | 10 | 0 | 2.91 |
Neurocrine Biosciences currently has a consensus price target of $127.8333, suggesting a potential upside of 35.13%. Iovance Biotherapeutics has a consensus price target of $47.90, suggesting a potential upside of 85.52%. Given Iovance Biotherapeutics' stronger consensus rating and higher probable upside, analysts clearly believe Iovance Biotherapeutics is more favorable than Neurocrine Biosciences.
Profitability
This table compares Neurocrine Biosciences and Iovance Biotherapeutics' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Neurocrine Biosciences | 8.96% | 18.18% | 9.50% |
| Iovance Biotherapeutics | N/A | -50.64% | -45.64% |
Institutional & Insider Ownership
95.3% of Neurocrine Biosciences shares are held by institutional investors. Comparatively, 94.6% of Iovance Biotherapeutics shares are held by institutional investors. 4.3% of Neurocrine Biosciences shares are held by insiders. Comparatively, 9.9% of Iovance Biotherapeutics shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Summary
Neurocrine Biosciences beats Iovance Biotherapeutics on 10 of the 13 factors compared between the two stocks.
