Quintiles IMS Holdings (NYSE: Q) and Roka Bioscience (NASDAQ:ROKA) are both medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitabiliy, earnings, institutional ownership, risk, dividends and valuation.

Risk and Volatility

Quintiles IMS Holdings has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500. Comparatively, Roka Bioscience has a beta of 1.95, meaning that its share price is 95% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Quintiles IMS Holdings and Roka Bioscience, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Quintiles IMS Holdings 1 10 8 0 2.37
Roka Bioscience 0 0 1 0 3.00

Quintiles IMS Holdings currently has a consensus price target of $83.50, indicating a potential downside of 5.04%. Roka Bioscience has a consensus price target of $10.00, indicating a potential upside of 274.53%. Given Roka Bioscience’s stronger consensus rating and higher possible upside, analysts plainly believe Roka Bioscience is more favorable than Quintiles IMS Holdings.

Valuation & Earnings

This table compares Quintiles IMS Holdings and Roka Bioscience’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Quintiles IMS Holdings $6.17 billion 3.14 $1.28 billion $3.26 26.97
Roka Bioscience $7.65 million 1.75 -$23.26 million ($20.19) -0.13

Quintiles IMS Holdings has higher revenue and earnings than Roka Bioscience. Roka Bioscience is trading at a lower price-to-earnings ratio than Quintiles IMS Holdings, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

45.9% of Quintiles IMS Holdings shares are held by institutional investors. 10.9% of Quintiles IMS Holdings shares are held by insiders. Comparatively, 28.9% of Roka Bioscience shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Quintiles IMS Holdings and Roka Bioscience’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Quintiles IMS Holdings 6.55% -212.51% 11.32%
Roka Bioscience -487.61% -89.22% -50.43%

Summary

Quintiles IMS Holdings beats Roka Bioscience on 8 of the 13 factors compared between the two stocks.

Quintiles IMS Holdings Company Profile

Quintiles IMS Holdings, Inc., formerly Quintiles Transnational Holdings Inc., provides integrated information and technology-enabled healthcare services. The Company operates through segments, including Commercial Solutions; Research & Development Solutions, and Integrated Engagement Services. The Commercial Solutions segment offerings include national information offerings, sub-national information offerings, technology solutions, and workflow analytics and consulting services. The Research & Development Solutions segment provides biopharmaceutical development services. It offers project management and clinical monitoring, clinical trial support services, Q2 solutions, and strategic planning and design. The Integrated Engagement Services segment offerings include healthcare provider engagement services, patient engagement services, and scientific strategy and medical affairs services. The Company has its operations in the Americas, Europe and Africa, and the Asia-Pacific.

Roka Bioscience Company Profile

Roka Bioscience, Inc. is a molecular diagnostics company. The Company is focused on the development and commercialization of molecular assay technologies for the detection of foodborne pathogens under the Atlas brand name. The Company offers Atlas Detection Assays and Atlas instrument in the North American food safety testing market and has rights to develop and commercialize its molecular testing solutions for a range of other industrial applications. The detection of foodborne pathogens is accomplished using culture-based assays, immunochemical-based assays and molecular-based assays. The Company sells its Atlas Detection Assays and related consumable supplies for use with its Atlas instruments. The Company’s Atlas instrument is an automated molecular diagnostic testing and a sample-in-result-out instrument that eliminates the need for batch processing and automates all aspects of molecular diagnostic testing on a single, integrated platform.

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