Seagen (NASDAQ:SGEN) and Regeneron Pharmaceuticals (NASDAQ:REGN) are both large-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, valuation, earnings, profitability, analyst recommendations, dividends and institutional ownership.
Insider and Institutional Ownership
87.2% of Seagen shares are held by institutional investors. Comparatively, 85.0% of Regeneron Pharmaceuticals shares are held by institutional investors. 31.1% of Seagen shares are held by company insiders. Comparatively, 11.8% of Regeneron Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares Seagen and Regeneron Pharmaceuticals' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Seagen | 25.34% | 20.46% | 16.67% |
Regeneron Pharmaceuticals | 38.28% | 28.97% | 20.11% |
Earnings and Valuation
This table compares Seagen and Regeneron Pharmaceuticals' revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Seagen | $916.71 million | 28.25 | $-158,650,000.00 | ($1.33) | -107.41 |
Regeneron Pharmaceuticals | $7.86 billion | 6.47 | $2.12 billion | $21.47 | 22.13 |
Regeneron Pharmaceuticals has higher revenue and earnings than Seagen. Seagen 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
Seagen has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500. Comparatively, Regeneron Pharmaceuticals has a beta of 0.3, indicating that its share price is 70% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Seagen and Regeneron Pharmaceuticals, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Seagen | 1 | 6 | 11 | 1 | 2.63 |
Regeneron Pharmaceuticals | 0 | 5 | 14 | 1 | 2.80 |
Seagen presently has a consensus target price of $185.3571, indicating a potential upside of 29.76%. Regeneron Pharmaceuticals has a consensus target price of $637.2083, indicating a potential upside of 34.10%. Given Regeneron Pharmaceuticals' stronger consensus rating and higher possible upside, analysts clearly believe Regeneron Pharmaceuticals is more favorable than Seagen.
Summary
Regeneron Pharmaceuticals beats Seagen on 9 of the 14 factors compared between the two stocks.