Lexicon Pharmaceuticals (NASDAQ: LXRX) and Xencor (NASDAQ:XNCR) are both small-cap healthcare companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.
Risk and Volatility
Lexicon Pharmaceuticals has a beta of 0.1, suggesting that its share price is 90% less volatile than the S&P 500. Comparatively, Xencor has a beta of 2.09, suggesting that its share price is 109% more volatile than the S&P 500.
This table compares Lexicon Pharmaceuticals and Xencor’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Lexicon Pharmaceuticals||$83.34 million||12.53||-$141.42 million||($1.27)||-7.79|
|Xencor||$87.52 million||12.26||$23.62 million||($1.01)||-22.61|
Xencor has higher revenue and earnings than Lexicon Pharmaceuticals. Xencor is trading at a lower price-to-earnings ratio than Lexicon Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
This table compares Lexicon Pharmaceuticals and Xencor’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
77.5% of Xencor shares are held by institutional investors. 5.8% of Lexicon Pharmaceuticals shares are held by company insiders. Comparatively, 4.1% of Xencor shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
This is a summary of recent ratings and recommmendations for Lexicon Pharmaceuticals and Xencor, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Lexicon Pharmaceuticals currently has a consensus target price of $28.50, suggesting a potential upside of 188.17%. Xencor has a consensus target price of $30.80, suggesting a potential upside of 34.85%. Given Lexicon Pharmaceuticals’ stronger consensus rating and higher possible upside, analysts plainly believe Lexicon Pharmaceuticals is more favorable than Xencor.
Xencor beats Lexicon Pharmaceuticals on 8 of the 13 factors compared between the two stocks.
About Lexicon Pharmaceuticals
Lexicon Pharmaceuticals, Inc. is a biopharmaceutical company. The Company focuses on the development and commercialization of breakthrough treatments for human disease. Its drug programs include XERMELO (telotristat ethyl), sotagliflozin, LX2761 and LX9211. It also has a number of additional compounds into various stages of clinical and preclinical development. XERMELO is an orally-delivered small molecule compound approved by the Food and Drug Administration (FDA) for the treatment of carcinoid syndrome diarrhea in combination with somatostatin analog (SSA) therapy in adults inadequately controlled by SSA therapy. It is developing sotagliflozin, an orally-delivered small molecule drug candidate, as a treatment for type 1 and type 2 diabetes mellitus. LX2761 is an orally-delivered small molecule compound that it is developing for the treatment of diabetes. LX9211 is an orally-delivered small molecule compound that the Company is developing for the treatment of neuropathic pain.
Xencor, Inc. is a clinical-stage biopharmaceutical company. The Company is focused on discovering and developing engineered monoclonal antibodies to treat severe and life threatening diseases. It has developed two clinical-stage product candidates, using its Immune Inhibitor Fc platform: XmAb5871, which is in two Phase II trials and is being developed for autoimmune disease, and XmAb7195, which is in a Phase I trial and is being developed for asthma and allergic diseases. It is also developing a pipeline of bispecific antibody candidates using its heterodimer Fc bispecific technology: XmAb14045, which is in a Phase I trial for the treatment of acute myeloid leukemia (AML); XmAb13676, which is in a Phase I trial for the treatment of B-cell malignancies; XmAb18087, which is in preclinical development for the treatment of neuroendocrine tumors, and XmAb20717, which is in preclinical development for the treatment of various cancers and is its dual checkpoint inhibitor.
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