Neurocrine Biosciences (NASDAQ: NBIX) and Sangamo Therapeutics (NASDAQ:SGMO) are both medical companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.

Valuation and Earnings

This table compares Neurocrine Biosciences and Sangamo Therapeutics’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Neurocrine Biosciences $6.34 million 867.32 -$219.96 million ($2.52) -24.73
Sangamo Therapeutics $23.42 million 56.76 -$57.47 million ($0.81) -19.63

Sangamo Therapeutics has higher revenue and earnings than Neurocrine Biosciences. Neurocrine Biosciences is trading at a lower price-to-earnings ratio than Sangamo Therapeutics, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Neurocrine Biosciences and Sangamo Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Neurocrine Biosciences N/A -69.86% -48.65%
Sangamo Therapeutics -246.39% -38.49% -30.67%

Risk and Volatility

Neurocrine Biosciences has a beta of 0.41, suggesting that its share price is 59% less volatile than the S&P 500. Comparatively, Sangamo Therapeutics has a beta of 3.14, suggesting that its share price is 214% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Neurocrine Biosciences and Sangamo Therapeutics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Neurocrine Biosciences 0 1 16 0 2.94
Sangamo Therapeutics 0 2 3 0 2.60

Neurocrine Biosciences currently has a consensus price target of $68.81, suggesting a potential upside of 10.40%. Sangamo Therapeutics has a consensus price target of $15.00, suggesting a potential downside of 5.66%. Given Neurocrine Biosciences’ stronger consensus rating and higher probable upside, analysts clearly believe Neurocrine Biosciences is more favorable than Sangamo Therapeutics.

Insider & Institutional Ownership

63.4% of Sangamo Therapeutics shares are owned by institutional investors. 4.8% of Neurocrine Biosciences shares are owned by company insiders. Comparatively, 5.5% of Sangamo Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Sangamo Therapeutics beats Neurocrine Biosciences on 8 of the 13 factors compared between the two stocks.

Neurocrine Biosciences Company Profile

Neurocrine Biosciences, Inc. is engaged in discovering and developing pharmaceuticals, in diseases with unmet medical needs, through its research and development (R&D) platform, focused on neurological and endocrine based diseases and disorders. Its three lead late-stage clinical programs are elagolix, which is a gonadotropin-releasing hormone (GnRH) antagonist for endometriosis and uterine fibroids; INGREZZA (valbenazine), which is a vesicular monoamine transporter 2 (VMAT2) inhibitor, for the treatment of movement disorders, and opicapone, which is a selective catechol-O-methyltransferase inhibitor that is an adjunct therapy to preparations of levodopa/Dihydroxyphenylalanine (DOPA) decarboxylase inhibitors for adult patients with Parkinson’s disease. Its product pipeline also includes NBI-640756, which targets tremor and NBI-74788, which targets classic congenital adrenal hyperplasia. Its R&D focus is on addressing diseases and disorders of the central nervous and endocrine systems.

Sangamo Therapeutics Company Profile

Sangamo Therapeutics, Inc., formerly Sangamo BioSciences, Inc., is a clinical-stage biotechnology company. The Company is focused on translating science into genomic therapies that transform patients’ lives using the Company’s platform technologies in genome editing, gene therapy, gene regulation and cell therapy. The Company has clinical and preclinical programs in development and partnered certain programs with biopharmaceutical companies to expedite clinical and commercial development. The focus for its Company is the development of human therapeutics. The Company’s product pipeline includes SB-525, SB-FIX, SB-318, SB-913, SB-728-T and SB-728-HSPC. The Company has initiated a Phase I/II clinical trial evaluating its zinc finger nuclease (ZFN) in vivo genome editing approach for the treatment of hemophilia B. In the development of its ZFP technology platform, it is focusing its resources on product development for therapeutic use in humans and on its non-therapeutic applications.

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