Critical Survey: NewLink Genetics (NLNK) and BIO-TECHNE (TECH)

NewLink Genetics (NASDAQ: NLNK) and BIO-TECHNE (NASDAQ:TECH) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, valuation, profitability, analyst recommendations, earnings, institutional ownership and dividends.

Profitability

This table compares NewLink Genetics and BIO-TECHNE’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NewLink Genetics -229.19% -63.39% -47.83%
BIO-TECHNE 19.17% 14.39% 8.89%

Earnings and Valuation

This table compares NewLink Genetics and BIO-TECHNE’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NewLink Genetics $35.77 million 7.16 -$85.15 million ($2.44) -2.83
BIO-TECHNE $563.00 million 9.01 $76.08 million $3.05 44.41

BIO-TECHNE has higher revenue and earnings than NewLink Genetics. NewLink Genetics is trading at a lower price-to-earnings ratio than BIO-TECHNE, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

51.7% of NewLink Genetics shares are held by institutional investors. Comparatively, 96.1% of BIO-TECHNE shares are held by institutional investors. 13.7% of NewLink Genetics shares are held by company insiders. Comparatively, 3.4% of BIO-TECHNE shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

NewLink Genetics has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500. Comparatively, BIO-TECHNE has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for NewLink Genetics and BIO-TECHNE, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NewLink Genetics 0 0 6 0 3.00
BIO-TECHNE 0 2 5 0 2.71

NewLink Genetics currently has a consensus price target of $25.67, suggesting a potential upside of 271.44%. BIO-TECHNE has a consensus price target of $144.25, suggesting a potential upside of 6.50%. Given NewLink Genetics’ stronger consensus rating and higher probable upside, research analysts clearly believe NewLink Genetics is more favorable than BIO-TECHNE.

Dividends

BIO-TECHNE pays an annual dividend of $1.28 per share and has a dividend yield of 0.9%. NewLink Genetics does not pay a dividend. BIO-TECHNE pays out 42.0% of its earnings in the form of a dividend.

Summary

BIO-TECHNE beats NewLink Genetics on 10 of the 16 factors compared between the two stocks.

About NewLink Genetics

NewLink Genetics Corporation is a clinical-stage immuno-oncology company focused on discovering, developing and commercializing immunotherapeutic products for the treatment of cancer. The Company’s portfolio includes biologic and small-molecule immunotherapy product candidates for a range of oncology indications. Its biologic product candidates are based on its HyperAcute Cellular Immunotherapy technology, which is designed to stimulate the human immune system to attack cancer cells. Its additional HyperAcute Cellular Immunotherapy product candidates in clinical development include tergenpumatucel-L and dorgenmeltucel-L for patients with advanced lung cancer and melanoma, respectively. Additionally, it has two small-molecule product candidates in clinical development: GDC-0919 and indoximod. These product candidates are indoleamine-2, 3-dioxygenase (IDO) pathway inhibitors and focus on breaking the immune system’s tolerance to cancer.

About BIO-TECHNE

Bio-Techne Corporation develops, manufactures and sells biotechnology reagents and instruments for the research and clinical diagnostic markets. The Company operates through three segments: Biotechnology, Clinical Controls and Protein Platforms. The Biotechnology segment develops, manufactures and sells biotechnology research and diagnostic products, such as cytokines, growth factors, immunoassays, antibodies and related reagents, across the world. The Clinical Controls segment develops and manufactures controls, calibrators, immunoassays and other reagents for the global clinical market. The Protein Platforms segment develops and commercializes systems and consumables for protein analysis. It markets immunoassays on different testing platforms, including microtiter-plate based kits sold under the trade name Quantikine, and immunoassays based on planar spotted surfaces and microfluidic-based multiplex immunoassays on automated testing platform.

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