PAREXEL International (PRXL) vs. INC Research Holdings (INCR) Critical Survey
PAREXEL International (NASDAQ: PRXL) and INC Research Holdings (NASDAQ:INCR) are both healthcare companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, valuation, risk and profitability.
This table compares PAREXEL International and INC Research Holdings’ 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%|
This is a breakdown of recent ratings and target prices for PAREXEL International and INC Research Holdings, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|INC Research Holdings||0||4||6||0||2.60|
PAREXEL International currently has a consensus price target of $74.46, indicating a potential downside of 15.47%. INC Research Holdings has a consensus price target of $65.00, indicating a potential upside of 11.30%. Given INC Research Holdings’ stronger consensus rating and higher possible upside, analysts clearly believe INC Research Holdings is more favorable than PAREXEL International.
Volatility and Risk
PAREXEL International has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500. Comparatively, INC Research Holdings has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500.
Valuation and Earnings
This table compares PAREXEL International and INC Research Holdings’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|INC Research Holdings||$1.61 billion||3.75||$112.63 million||$1.61||36.27|
INC Research Holdings has higher revenue and earnings than PAREXEL International. INC Research Holdings is trading at a lower price-to-earnings ratio than PAREXEL International, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
87.5% of PAREXEL International shares are held by institutional investors. Comparatively, 53.7% of INC Research Holdings shares are held by institutional investors. 2.9% of PAREXEL International shares are held by company insiders. Comparatively, 0.2% of INC Research Holdings shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
INC Research Holdings beats PAREXEL International on 8 of the 11 factors compared between the two stocks.
PAREXEL International Company Profile
PAREXEL International Corporation (PAREXEL) is a biopharmaceutical outsourcing services company. The Company provides a range of expertise in clinical research, clinical logistics, medical communications, consulting, commercialization, and technology products and services to pharmaceutical, biotechnology and medical device industries. Its segments include Clinical Research Services (CRS), PAREXEL Consulting Services (PC) and PAREXEL Informatics (PI). The CRS segment includes various phases of clinical research from first-in-man trials, where a medicinal entity is tested on human subjects for the first time, through post-marketing studies, following approval by the presiding regulatory body. The PC segment provides technical expertise and advice in areas, such as strategy, drug development, regulatory affairs, strategic compliance and targeted communications services in support of product launch. The Company’s PI segment provides information technology solutions.
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.
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