Incyte Corporation (NASDAQ: INCY) and Compugen (NASDAQ:CGEN) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, earnings, dividends, profitability, valuation and risk.

Profitability

This table compares Incyte Corporation and Compugen’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Incyte Corporation -11.77% -21.57% -9.33%
Compugen -4,425.00% -57.69% -50.83%

Institutional and Insider Ownership

91.1% of Incyte Corporation shares are held by institutional investors. Comparatively, 17.5% of Compugen shares are held by institutional investors. 17.7% of Incyte Corporation shares are held by insiders. Comparatively, 9.5% of Compugen shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Incyte Corporation has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500. Comparatively, Compugen has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500.

Valuation and Earnings

This table compares Incyte Corporation and Compugen’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Incyte Corporation $1.31 billion 18.71 $9.84 million ($0.78) -152.76
Compugen $123,000.00 1,413.38 -$33.14 million ($0.67) -5.07

Incyte Corporation has higher revenue and earnings than Compugen. Incyte Corporation is trading at a lower price-to-earnings ratio than Compugen, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Incyte Corporation and Compugen, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Incyte Corporation 0 4 18 0 2.82
Compugen 0 0 1 0 3.00

Incyte Corporation currently has a consensus target price of $143.55, indicating a potential upside of 20.48%. Compugen has a consensus target price of $14.00, indicating a potential upside of 311.76%. Given Compugen’s stronger consensus rating and higher possible upside, analysts clearly believe Compugen is more favorable than Incyte Corporation.

Summary

Incyte Corporation beats Compugen on 9 of the 13 factors compared between the two stocks.

Incyte Corporation Company Profile

Incyte Corporation is a biopharmaceutical company focused on the discovery, development and commercialization of therapeutics. Its portfolio includes compounds in various stages, ranging from preclinical to late-stage development, and commercialized products, such as JAKAFI (ruxolitinib) and ICLUSIG (ponatinib). JAKAFI (ruxolitinib) is indicated for the treatment of patients with intermediate or high risk myelofibrosis (MF) and for the treatment of patients with polycythemia vera (PV) having had an inadequate response to or are intolerant of hydroxyurea. As of December 31, 2016, the Food and Drug Administration had granted JAKAFI orphan drug status for MF, PV and essential thrombocythemia. The primary target for ICLUSIG is B Cell Receptor-ABL, an abnormal tyrosine kinase that is expressed in chronic myeloid leukemia and Philadelphia-chromosome positive acute lymphoblastic leukemia. The Company also has a portfolio of selective janus associated kinases 1 (JAK1) inhibitors.

Compugen Company Profile

Compugen Ltd. is a therapeutic discovery company. The Company focuses on infrastructure to discover drug targets and develop therapeutics. The Company is engaged in the research, development and commercialization of therapeutic and product candidates. The Company’s pipeline primarily consists of early and preclinical stage immuno-oncology programs based on drug targets discovered by the Company, primarily immune checkpoint and myeloid protein target candidates. These programs are focused on the development of cancer immunotherapy drugs with potential to harness the immune system to provide treatment solutions in areas of unmet medical needs in various cancer types and patient populations, both as monotherapy and in combination with other drugs. Its pipeline also includes a preclinical stage fusion protein autoimmune product candidate. Its fields of focus are oncology and immunology, with emphasis on its discovery capabilities on immuno-oncology.

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