Exelixis (NASDAQ: INCY) and Incyte (NASDAQ:INCY) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, analyst recommendations and earnings.

Institutional and Insider Ownership

80.9% of Exelixis shares are owned by institutional investors. Comparatively, 91.5% of Incyte shares are owned by institutional investors. 4.8% of Exelixis shares are owned by company insiders. Comparatively, 17.2% of Incyte shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Exelixis and Incyte’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Exelixis $452.48 million 10.45 $154.22 million $0.51 31.12
Incyte $1.54 billion 9.27 -$313.14 million $0.64 104.72

Exelixis has higher earnings, but lower revenue than Incyte. Exelixis is trading at a lower price-to-earnings ratio than Incyte, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Exelixis and Incyte’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Exelixis 48.17% 65.68% 43.81%
Incyte -5.92% 1.74% 1.25%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Exelixis and Incyte, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Exelixis 1 3 9 0 2.62
Incyte 0 8 15 0 2.65

Exelixis presently has a consensus price target of $31.00, indicating a potential upside of 95.34%. Incyte has a consensus price target of $101.77, indicating a potential upside of 51.85%. Given Exelixis’ higher possible upside, research analysts plainly believe Exelixis is more favorable than Incyte.

Risk and Volatility

Exelixis has a beta of 1.97, suggesting that its share price is 97% more volatile than the S&P 500. Comparatively, Incyte has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500.

Exelixis Company Profile

Exelixis, Inc., a biotechnology company, engages in the discovery, development, and commercialization of new medicines to enhance care and outcomes for people with cancer. The company's products include CABOMETYX tablets for the treatment of patients with advanced renal cell carcinoma who received prior anti-angiogenic therapy; and COMETRIQ capsules for the treatment of patients with progressive and metastatic medullary thyroid cancer. Its CABOMETYX and COMETRIQ are derived from cabozantinib, an inhibitor of multiple tyrosine kinases, including MET, AXL, RET, and VEGF receptors. It also offers COTELLIC tablets, an inhibitor of MEK in combination with vemurafenib for the treatment of patients with BRAF V600E or V600K mutation-positive advanced melanoma in the United States; and in combination with vemurafenib in other territories, including the European Union, Switzerland, Canada, Australia, and Brazil. Exelixis, Inc. has collaboration and license agreement with Ipsen Pharma SAS, Genentech, Inc., GlaxoSmithKline, Bristol-Myers Squibb Company, Sanofi, Merck, Daiichi Sankyo Company Limited, and Invenra, Inc. The company was formerly known as Exelixis Pharmaceuticals, Inc. and changed its name to Exelixis, Inc. in February 2000. Exelixis, Inc. was founded in 1994 and is headquartered in South San Francisco, California.

Incyte Company Profile

Incyte Corporation, a biopharmaceutical company, focuses on the discovery, development, and commercialization of proprietary therapeutics in the United States. It offers JAKAFI, a drug for the treatment of myelofibrosis and polycythemia vera cancers; and ICLUSIG, a kinase inhibitor for the treatment of chronic myeloid leukemia and philadelphia-chromosome positive acute lymphoblastic leukemia. The company's clinical stage products include ruxolitinib, a drug that is in pivotal Phase II clinical trial for steroid-refractory acute graft-versus-host-diseases (GVHD); and Phase II clinical trial for the treatment of essential thrombocythemia, as well as Phase III clinical trials for steroid-refractory acute and chronic GVHDs. In addition, it is developing itacitinib that is in Phase I/II clinical trial in combination with osimertinib for non-small cell lung cancer (NSCLC), as well as Phase III clinical trial for naïve acute GVHD; epacadostat that is in Phase III clinical trails for the treatment of melanoma, renal, bladder, head and neck, non-small cell lung cancers; MGA012 that is in Phase I clinical trial for solid tumors; INCB50465, which is in Phase II clinical trials for the treatment of diffuse large b-cell lymphoma, follicular lymphoma, marginal zone lymphoma, and mantel cell lymphoma; and INCB54828 that is in Phase II clinical trials for the bladder cancer, cholangiocarcinoma, and 8p11 myeloproliferative syndrome. The company markets its JAKAFI product through a network of specialty pharmacy providers and wholesalers. It has collaboration agreements with Novartis International Pharmaceutical Ltd.; Eli Lilly and Company; Agenus Inc.; Jiangsu Hengrui Medicine Co., Ltd.; Merus N.V.; Calithera Biosciences, Inc; Pfizer; and MacroGenics, Inc. Incyte Corporation was founded in 1991 and is headquartered in Wilmington, Delaware.

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