INC Research Holdings (NASDAQ: INCR) and Idera Pharmaceuticals (NASDAQ:IDRA) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, risk, institutional ownership, profitability, valuation and earnings.

Earnings and Valuation

This table compares INC Research Holdings and Idera Pharmaceuticals’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
INC Research Holdings $1.03 billion 2.81 $226.74 million $1.61 33.20
Idera Pharmaceuticals $16.17 million 21.19 -$42.73 million ($0.33) -6.94

INC Research Holdings has higher revenue and earnings than Idera Pharmaceuticals. Idera Pharmaceuticals is trading at a lower price-to-earnings ratio than INC Research Holdings, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares INC Research Holdings and Idera Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
INC Research Holdings 5.69% 40.69% 9.87%
Idera Pharmaceuticals -300.63% -61.09% -55.14%

Institutional and Insider Ownership

54.6% of INC Research Holdings shares are owned by institutional investors. Comparatively, 30.9% of Idera Pharmaceuticals shares are owned by institutional investors. 0.2% of INC Research Holdings shares are owned by insiders. Comparatively, 30.3% of Idera Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk and Volatility

INC Research Holdings has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500. Comparatively, Idera Pharmaceuticals has a beta of 2.23, meaning that its share price is 123% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for INC Research Holdings and Idera Pharmaceuticals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
INC Research Holdings 0 5 4 0 2.44
Idera Pharmaceuticals 0 0 5 0 3.00

INC Research Holdings currently has a consensus price target of $63.50, indicating a potential upside of 18.80%. Idera Pharmaceuticals has a consensus price target of $5.02, indicating a potential upside of 119.21%. Given Idera Pharmaceuticals’ stronger consensus rating and higher possible upside, analysts clearly believe Idera Pharmaceuticals is more favorable than INC Research Holdings.

Summary

INC Research Holdings beats Idera Pharmaceuticals on 7 of the 13 factors compared between the two stocks.

INC Research Holdings Company Profile

INC Research Holdings, Inc. is a global contract research organization (CRO). The Company focuses on Phase I to Phase IV clinical development services for the biopharmaceutical and medical device industries. The Company operates through two segments: Clinical Development Services and Phase I Services. The Company’s Clinical Development Services segment offers a range of clinical development services, including full-service global studies, as well as ancillary services, such as clinical monitoring, investigator recruitment, patient recruitment, data management, study reports to assist customers with their drug development process, quality assurance audits and specialized consulting services. The Phase I Services segment focuses on clinical development services for Phase I trials, which include scientific exploratory medicine, first-in-human studies through proof-of-concept stages and support for Phase I studies in established compounds.

Idera Pharmaceuticals Company Profile

Idera Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company focused on the discovery, development and commercialization of therapeutics for oncology and rare diseases. The Company utilizes two drug discovery technology platforms to design and develop drug candidates, which include Toll-like receptor (TLR) targeting technology and third-generation antisense (3GA) technology. Using TLR technology, the Company designs synthetic oligonucleotide-based drug candidates to act by modulating the activity of specific TLRs. Using its 3GA technology, the Company is developing drug candidates to turn off the messenger ribo nucleic acid (mRNA) associated with disease causing genes. The Company’s drug candidates include IMO-8400, IMO-2125 and IMO-9200. The Company has designed TLR antagonists and agonists to act by modulating the activity of targeted TLRs. It is developing its 3GA technology to turn off the mRNA associated with disease causing genes.

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