Critical Comparison: Puma Biotechnology (PBYI) and Galapagos NV (GLPG)
Puma Biotechnology (NYSE: PBYI) and Galapagos NV (NASDAQ:GLPG) are both mid-cap healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, dividends, risk, valuation, analyst recommendations and institutional ownership.
Institutional & Insider Ownership
81.0% of Puma Biotechnology shares are held by institutional investors. Comparatively, 23.6% of Galapagos NV shares are held by institutional investors. 22.7% of Puma Biotechnology shares are held by insiders. Comparatively, 2.9% of Galapagos NV 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.
This is a summary of recent ratings and recommmendations for Puma Biotechnology and Galapagos NV, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Puma Biotechnology presently has a consensus target price of $124.89, suggesting a potential upside of 1.74%. Galapagos NV has a consensus target price of $111.83, suggesting a potential upside of 11.76%. Given Galapagos NV’s higher probable upside, analysts clearly believe Galapagos NV is more favorable than Puma Biotechnology.
This table compares Puma Biotechnology and Galapagos NV’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
Puma Biotechnology has a beta of 0.35, meaning that its share price is 65% less volatile than the S&P 500. Comparatively, Galapagos NV has a beta of 1.77, meaning that its share price is 77% more volatile than the S&P 500.
Valuation and Earnings
This table compares Puma Biotechnology and Galapagos NV’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Puma Biotechnology||N/A||N/A||-$289.01 million||($8.16)||-15.04|
|Galapagos NV||$211.35 million||24.08||-$19.92 million||($0.65)||-153.95|
Galapagos NV has higher revenue and earnings than Puma Biotechnology. Galapagos NV is trading at a lower price-to-earnings ratio than Puma Biotechnology, indicating that it is currently the more affordable of the two stocks.
Galapagos NV beats Puma Biotechnology on 7 of the 12 factors compared between the two stocks.
Puma Biotechnology Company Profile
Puma Biotechnology, Inc. is a biopharmaceutical company that focuses on the development and commercialization of products for the treatment of cancer. The Company focuses on in-licensing the development and commercialization rights to over three drug candidates, including PB272 (neratinib (oral)), PB272 (neratinib (intravenous)) and PB357. Neratinib is a potent irreversible tyrosine kinase inhibitor (TKI) that blocks signal transduction through the epidermal growth factor receptors (EGFRs), HER1, HER2 and HER4. Its initial focus is on the development of neratinib as an oral treatment of patients with HER2 positive metastatic breast cancer. It focuses on developing neratinib as an intravenously administered agent. The intravenous version of neratinib resulted in exposure levels of neratinib in pre-clinical models. Its product candidate, PB357, is an orally administered agent that is an irreversible TKI that blocks signal transduction through the epidermal growth factor receptors.
Galapagos NV Company Profile
Galapagos NV is a Belgium-based biotechnology company. The Company’s activities are divided into two operating divisions: Research and Development (R & D) and Services. The R & D division is engaged in the discovery and development of small molecules. The Services division, offers target-to-drug discovery products and services to pharmaceutical and biotechnology companies and to patient foundations, encompassing target discovery and validation, screening and drug discovery through to delivery of pre-clinical candidates. As of December 31, 2011, Galapagos NV was, through its subsidiaries, active in Belgium, France, Switzerland, the Netherlands, the United Kingdom, Germany, the United States and Croatia. In April 2014, it sold BioFocus and Argenta service division operations to Charles River Laboratories International.
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