EXACT Sciences (NASDAQ: EXAS) and Puma Biotechnology (NASDAQ:PBYI) are both mid-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, valuation, earnings, dividends and profitability.

Volatility and Risk

EXACT Sciences has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500. Comparatively, Puma Biotechnology has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500.

Insider & Institutional Ownership

82.4% of EXACT Sciences shares are held by institutional investors. Comparatively, 96.1% of Puma Biotechnology shares are held by institutional investors. 4.0% of EXACT Sciences shares are held by company insiders. Comparatively, 21.1% of Puma Biotechnology shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares EXACT Sciences and Puma Biotechnology’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
EXACT Sciences $99.38 million 65.90 -$167.21 million ($1.16) -47.16
Puma Biotechnology N/A N/A -$276.01 million ($8.18) -11.99

EXACT Sciences has higher revenue and earnings than Puma Biotechnology. EXACT Sciences is trading at a lower price-to-earnings ratio than Puma Biotechnology, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares EXACT Sciences and Puma Biotechnology’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
EXACT Sciences -60.71% -30.32% -27.37%
Puma Biotechnology N/A -208.58% -145.91%

Analyst Ratings

This is a summary of recent ratings for EXACT Sciences and Puma Biotechnology, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EXACT Sciences 0 5 8 0 2.62
Puma Biotechnology 0 1 8 0 2.89

EXACT Sciences presently has a consensus price target of $51.46, suggesting a potential downside of 5.92%. Puma Biotechnology has a consensus price target of $130.67, suggesting a potential upside of 33.27%. Given Puma Biotechnology’s stronger consensus rating and higher probable upside, analysts plainly believe Puma Biotechnology is more favorable than EXACT Sciences.

Summary

Puma Biotechnology beats EXACT Sciences on 6 of the 11 factors compared between the two stocks.

EXACT Sciences Company Profile

Exact Sciences Corporation is a molecular diagnostics company. The Company focuses on the early detection and prevention of some forms of cancer. It offers a non-invasive screening test called Cologuard for the early detection of colorectal cancer and pre-cancer. Its Cologuard test is a stool-based deoxyribonucleic acid (sDNA) screening test, which utilizes a multi-target approach to detect deoxyribonucleic acid (DNA) and hemoglobin biomarkers associated with colorectal cancer and pre-cancer. The Cologuard test is intended for the qualitative detection of colorectal neoplasia associated DNA markers and for the presence of occult hemoglobin in human stool. It focuses on the development of additional tests for other types of cancer. It is developing a blood-based biomarker test to aid in the early detection of lung cancer in individuals with lung nodules discovered through a computerized tomography (CT) or other scan.

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.

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