Regeneron Pharmaceuticals (NASDAQ:REGN) and NewLink Genetics (NASDAQ:NLNK) are both medical companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.
Earnings and Valuation
This table compares Regeneron Pharmaceuticals and NewLink Genetics' gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Regeneron Pharmaceuticals | $7.86 billion | 8.71 | $2.12 billion | $21.47 | 28.99 |
| NewLink Genetics | $940,000.00 | 644.50 | $-42,990,000.00 | ($1.03) | -15.76 |
Regeneron Pharmaceuticals has higher revenue and earnings than NewLink Genetics. NewLink Genetics is trading at a lower price-to-earnings ratio than Regeneron Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Regeneron Pharmaceuticals and NewLink Genetics' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Regeneron Pharmaceuticals | 28.56% | 24.94% | 18.81% |
| NewLink Genetics | -4,592.84% | -41.50% | -33.95% |
Institutional and Insider Ownership
68.0% of Regeneron Pharmaceuticals shares are owned by institutional investors. Comparatively, 32.3% of NewLink Genetics shares are owned by institutional investors. 11.8% of Regeneron Pharmaceuticals shares are owned by company insiders. Comparatively, 12.7% of NewLink Genetics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Risk & Volatility
Regeneron Pharmaceuticals has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500. Comparatively, NewLink Genetics has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for Regeneron Pharmaceuticals and NewLink Genetics, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Regeneron Pharmaceuticals | 0 | 13 | 13 | 1 | 2.56 |
| NewLink Genetics | 1 | 0 | 0 | 0 | 1.00 |
Regeneron Pharmaceuticals currently has a consensus price target of $557.7037, suggesting a potential downside of 10.40%. Given Regeneron Pharmaceuticals' stronger consensus rating and higher probable upside, equities analysts plainly believe Regeneron Pharmaceuticals is more favorable than NewLink Genetics.
Summary
Regeneron Pharmaceuticals beats NewLink Genetics on 12 of the 15 factors compared between the two stocks.
