Regeneron Pharmaceuticals (NASDAQ:REGN) and Rigel Pharmaceuticals (NASDAQ:RIGL) are both medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.
Profitability
This table compares Regeneron Pharmaceuticals and Rigel Pharmaceuticals' 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% |
| Rigel Pharmaceuticals | -26.25% | -44.96% | -20.08% |
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Regeneron Pharmaceuticals and Rigel Pharmaceuticals, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Regeneron Pharmaceuticals | 0 | 5 | 14 | 1 | 2.80 |
| Rigel Pharmaceuticals | 0 | 1 | 3 | 0 | 2.75 |
Regeneron Pharmaceuticals currently has a consensus price target of $646.2609, indicating a potential upside of 28.58%. Rigel Pharmaceuticals has a consensus price target of $8.3333, indicating a potential upside of 132.77%. Given Rigel Pharmaceuticals' higher probable upside, analysts plainly believe Rigel Pharmaceuticals is more favorable than Regeneron Pharmaceuticals.
Institutional & Insider Ownership
85.0% of Regeneron Pharmaceuticals shares are held by institutional investors. Comparatively, 82.0% of Rigel Pharmaceuticals shares are held by institutional investors. 11.8% of Regeneron Pharmaceuticals shares are held by company insiders. Comparatively, 4.7% of Rigel Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Regeneron Pharmaceuticals and Rigel Pharmaceuticals' gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Regeneron Pharmaceuticals | $7.86 billion | 6.85 | $2.12 billion | $21.47 | 23.41 |
| Rigel Pharmaceuticals | $59.29 million | 10.27 | $-66,890,000.00 | ($0.40) | -8.95 |
Regeneron Pharmaceuticals has higher revenue and earnings than Rigel Pharmaceuticals. Rigel Pharmaceuticals is trading at a lower price-to-earnings ratio than Regeneron Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Regeneron Pharmaceuticals has a beta of 0.3, meaning that its share price is 70% less volatile than the S&P 500. Comparatively, Rigel Pharmaceuticals has a beta of 1.48, meaning that its share price is 48% more volatile than the S&P 500.
Summary
Regeneron Pharmaceuticals beats Rigel Pharmaceuticals on 12 of the 15 factors compared between the two stocks.
