Analyzing Neurocrine Biosciences (NBIX) and Sangamo Therapeutics (NASDAQ:SGMO)

Sangamo Therapeutics (NASDAQ: SGMO) and Neurocrine Biosciences (NASDAQ:NBIX) are both medical companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, risk, valuation, institutional ownership, analyst recommendations and earnings.

Institutional & Insider Ownership

63.5% of Sangamo Therapeutics shares are held by institutional investors. 5.5% of Sangamo Therapeutics 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 stock is poised for long-term growth.

Profitability

This table compares Sangamo Therapeutics and Neurocrine Biosciences’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sangamo Therapeutics -246.39% -38.49% -30.67%
Neurocrine Biosciences N/A -69.86% -48.65%

Valuation and Earnings

This table compares Sangamo Therapeutics and Neurocrine Biosciences’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Sangamo Therapeutics $23.42 million 42.93 -$57.47 million ($0.81) -14.85
Neurocrine Biosciences $6.34 million 825.85 -$219.96 million ($2.52) -23.55

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

Analyst Ratings

This is a summary of current recommendations and price targets for Sangamo Therapeutics and Neurocrine Biosciences, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sangamo Therapeutics 0 2 3 0 2.60
Neurocrine Biosciences 0 1 16 0 2.94

Sangamo Therapeutics currently has a consensus target price of $15.00, indicating a potential upside of 24.74%. Neurocrine Biosciences has a consensus target price of $69.31, indicating a potential upside of 16.79%. Given Sangamo Therapeutics’ higher possible upside, analysts plainly believe Sangamo Therapeutics is more favorable than Neurocrine Biosciences.

Risk and Volatility

Sangamo Therapeutics has a beta of 3.14, meaning that its stock price is 214% more volatile than the S&P 500. Comparatively, Neurocrine Biosciences has a beta of 0.41, meaning that its stock price is 59% less volatile than the S&P 500.

Summary

Sangamo Therapeutics beats Neurocrine Biosciences on 9 of the 13 factors compared between the two stocks.

Sangamo Therapeutics Company Profile

Sangamo Therapeutics, Inc., formerly Sangamo BioSciences, Inc., is a clinical-stage biotechnology company. The Company is focused on translating science into genomic therapies that transform patients’ lives using the Company’s platform technologies in genome editing, gene therapy, gene regulation and cell therapy. The Company has clinical and preclinical programs in development and partnered certain programs with biopharmaceutical companies to expedite clinical and commercial development. The focus for its Company is the development of human therapeutics. The Company’s product pipeline includes SB-525, SB-FIX, SB-318, SB-913, SB-728-T and SB-728-HSPC. The Company has initiated a Phase I/II clinical trial evaluating its zinc finger nuclease (ZFN) in vivo genome editing approach for the treatment of hemophilia B. In the development of its ZFP technology platform, it is focusing its resources on product development for therapeutic use in humans and on its non-therapeutic applications.

Neurocrine Biosciences Company Profile

Neurocrine Biosciences, Inc. is engaged in discovering and developing pharmaceuticals, in diseases with unmet medical needs, through its research and development (R&D) platform, focused on neurological and endocrine based diseases and disorders. Its three lead late-stage clinical programs are elagolix, which is a gonadotropin-releasing hormone (GnRH) antagonist for endometriosis and uterine fibroids; INGREZZA (valbenazine), which is a vesicular monoamine transporter 2 (VMAT2) inhibitor, for the treatment of movement disorders, and opicapone, which is a selective catechol-O-methyltransferase inhibitor that is an adjunct therapy to preparations of levodopa/Dihydroxyphenylalanine (DOPA) decarboxylase inhibitors for adult patients with Parkinson’s disease. Its product pipeline also includes NBI-640756, which targets tremor and NBI-74788, which targets classic congenital adrenal hyperplasia. Its R&D focus is on addressing diseases and disorders of the central nervous and endocrine systems.

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