Regeneron Pharmaceuticals (NASDAQ:REGN) and Neurocrine Biosciences (NASDAQ:NBIX) are both large-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, institutional ownership, profitability, valuation, analyst recommendations, risk and earnings.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Regeneron Pharmaceuticals and Neurocrine Biosciences, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Regeneron Pharmaceuticals | 0 | 6 | 15 | 1 | 2.77 |
Neurocrine Biosciences | 0 | 8 | 11 | 0 | 2.58 |
Regeneron Pharmaceuticals presently has a consensus price target of $625.8077, indicating a potential upside of 35.15%. Neurocrine Biosciences has a consensus price target of $129.2222, indicating a potential upside of 18.09%. Given Regeneron Pharmaceuticals' stronger consensus rating and higher probable upside, equities analysts plainly believe Regeneron Pharmaceuticals is more favorable than Neurocrine Biosciences.
Profitability
This table compares Regeneron Pharmaceuticals and Neurocrine Biosciences' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Regeneron Pharmaceuticals | 38.28% | 28.97% | 20.11% |
Neurocrine Biosciences | 8.96% | 18.18% | 9.50% |
Volatility and Risk
Regeneron Pharmaceuticals has a beta of 0.3, suggesting that its stock price is 70% less volatile than the S&P 500. Comparatively, Neurocrine Biosciences has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500.
Institutional and Insider Ownership
85.0% of Regeneron Pharmaceuticals shares are held by institutional investors. Comparatively, 95.3% of Neurocrine Biosciences shares are held by institutional investors. 11.8% of Regeneron Pharmaceuticals shares are held by insiders. Comparatively, 4.3% of Neurocrine Biosciences shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Regeneron Pharmaceuticals and Neurocrine Biosciences' gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Regeneron Pharmaceuticals | $7.86 billion | 6.31 | $2.12 billion | $21.47 | 21.57 |
Neurocrine Biosciences | $788.10 million | 13.04 | $37.01 million | $0.39 | 280.59 |
Regeneron Pharmaceuticals has higher revenue and earnings than Neurocrine Biosciences. Regeneron Pharmaceuticals is trading at a lower price-to-earnings ratio than Neurocrine Biosciences, indicating that it is currently the more affordable of the two stocks.
Summary
Regeneron Pharmaceuticals beats Neurocrine Biosciences on 11 of the 15 factors compared between the two stocks.