Analyzing Puma Biotechnology (PBYI) & Incyte (INCY)

Puma Biotechnology (NASDAQ: PBYI) and Incyte (NASDAQ:INCY) are both healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, profitability, valuation, risk, analyst recommendations and institutional ownership.

Earnings and Valuation

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This table compares Puma Biotechnology and Incyte’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Puma Biotechnology N/A N/A -$276.01 million ($8.19) -8.08
Incyte $1.54 billion 11.74 -$313.14 million ($1.56) -54.61

Puma Biotechnology has higher earnings, but lower revenue than Incyte. Incyte 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 Puma Biotechnology and Incyte’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Puma Biotechnology N/A -208.58% -145.91%
Incyte -20.38% -11.85% -8.05%

Insider & Institutional Ownership

89.4% of Incyte shares are held by institutional investors. 21.1% of Puma Biotechnology shares are held by company insiders. Comparatively, 17.7% of Incyte shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Puma Biotechnology 0 2 7 0 2.78
Incyte 0 5 17 0 2.77

Puma Biotechnology currently has a consensus price target of $110.56, indicating a potential upside of 67.13%. Incyte has a consensus price target of $142.65, indicating a potential upside of 67.45%. Given Incyte’s higher possible upside, analysts plainly believe Incyte is more favorable than Puma Biotechnology.

Volatility and Risk

Puma Biotechnology has a beta of 0.18, indicating that its stock price is 82% less volatile than the S&P 500. Comparatively, Incyte has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500.

Summary

Incyte beats Puma Biotechnology on 8 of the 13 factors compared between the two stocks.

About Puma Biotechnology

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.

About Incyte

Incyte Corporation is a biopharmaceutical company focused on the discovery, development and commercialization of therapeutics. Its portfolio includes compounds in various stages, ranging from preclinical to late-stage development, and commercialized products, such as JAKAFI (ruxolitinib) and ICLUSIG (ponatinib). JAKAFI (ruxolitinib) is indicated for the treatment of patients with intermediate or high risk myelofibrosis (MF) and for the treatment of patients with polycythemia vera (PV) having had an inadequate response to or are intolerant of hydroxyurea. As of December 31, 2016, the Food and Drug Administration had granted JAKAFI orphan drug status for MF, PV and essential thrombocythemia. The primary target for ICLUSIG is B Cell Receptor-ABL, an abnormal tyrosine kinase that is expressed in chronic myeloid leukemia and Philadelphia-chromosome positive acute lymphoblastic leukemia. The Company also has a portfolio of selective janus associated kinases 1 (JAK1) inhibitors.

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