Financial Analysis: Profound Medical (NASDAQ:PROF) vs. Neurocrine Biosciences (NASDAQ:NBIX)

Profound Medical (NASDAQ:PROFGet Free Report) and Neurocrine Biosciences (NASDAQ:NBIXGet Free Report) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, profitability, analyst recommendations, dividends and risk.

Risk & Volatility

Profound Medical has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500. Comparatively, Neurocrine Biosciences has a beta of 0.28, suggesting that its stock price is 72% less volatile than the S&P 500.

Profitability

This table compares Profound Medical and Neurocrine Biosciences’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Profound Medical -275.16% -86.18% -70.55%
Neurocrine Biosciences 15.95% 15.82% 11.00%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Profound Medical and Neurocrine Biosciences, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Profound Medical 1 0 1 0 2.00
Neurocrine Biosciences 0 5 18 0 2.78

Profound Medical presently has a consensus target price of $12.00, suggesting a potential upside of 46.79%. Neurocrine Biosciences has a consensus target price of $175.25, suggesting a potential upside of 24.63%. Given Profound Medical’s higher probable upside, equities analysts clearly believe Profound Medical is more favorable than Neurocrine Biosciences.

Insider & Institutional Ownership

47.9% of Profound Medical shares are held by institutional investors. Comparatively, 92.6% of Neurocrine Biosciences shares are held by institutional investors. 1.5% of Profound Medical shares are held by company insiders. Comparatively, 4.8% of Neurocrine Biosciences shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Profound Medical and Neurocrine Biosciences”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Profound Medical $10.68 million 27.78 -$27.82 million ($1.34) -6.10
Neurocrine Biosciences $2.36 billion 5.95 $341.30 million $4.18 33.64

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

Summary

Neurocrine Biosciences beats Profound Medical on 11 of the 14 factors compared between the two stocks.

About Profound Medical

(Get Free Report)

Profound Medical Corp., together with its subsidiaries, operates as a commercial-stage medical device company that develops and markets incision-free therapeutic systems for the image guided ablation of diseased tissue in Canada, Germany, the United States, and Finland. Its lead product TULSA-PRO system combines magnetic resonance imaging(MRI), robotically-driven transurethral sweeping action/thermal ultrasound and closed-loop temperature feedback control to provide precise, flexible, and durable ablation of a surgeon defined region of prostate and protect the urethra and rectum. The company also offers Sonalleve, which combines real-time MRI and thermometry for the treatment of uterine fibroids, adenomyotic tissue, palliative pain treatment of bone metastases, osteoid osteoma, and management of benign tumors. Profound Medical Corp. is headquartered in Mississauga, Canada.

About Neurocrine Biosciences

(Get Free Report)

Neurocrine Biosciences, Inc. discovers, develops, and markets pharmaceuticals for neurological, neuroendocrine, and neuropsychiatric disorders in the United States and internationally. The company’s products include INGREZZA for tardive dyskinesia and chorea associated with Huntington’s disease; ALKINDI for adrenal insufficiency; Efmody capsules for classic congenital adrenal hyperplasia; Orilissa tablets for endometriosis; and Oriahnn capsules to treat uterine fibroids. Its product candidates in clinical development include valbenazine to treat dyskinetic cerebral palsy in pediatrics and adults; NBI-921352 to treat developmental and epileptic encephalopathy syndrome in pediatrics and adults; NBI-827104 to treat epileptic encephalopathy with continuous spike-and-wave during sleep; NBI-1076986 to treat movement disorders; crinecerfront to treat congenital adrenal hyperplasia in adults and children; EFMODY to treat congenital adrenal hyperplasia and adrenal insufficiency in adults; valbenazine for the adjunctive treatment of schizophrenia; NBI-1065845 for the treatment of inadequate response to treatment in major depressive disorder; luvadaxistat to treat cognitive impairment related to schizophrenia; NBI-1117568 for the treatment of schizophrenia; NBI-1070770 to treat major depressive disorder; NBI-1117570 for the treatment of symptoms of psychosis and cognition in neurological and neuropsychiatric conditions; and NBI-1117569, NBI-1117567, and NBI-1065890 to treat CNS indications. The company also has license and collaboration agreements with Heptares Therapeutics Limited; Takeda Pharmaceutical Company Limited; Idorsia Pharmaceuticals Ltd; Xenon Pharmaceuticals Inc.; Voyager Therapeutics, Inc.; BIAL Portela & Ca, S.A.; Mitsubishi Tanabe Pharma Corporation; and AbbVie Inc. The company was incorporated in 1992 and is headquartered in San Diego, California.

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