Genomic Health (GHDX) and Anacor Pharmaceuticals (NASDAQ:ANAC) Head-To-Head Review

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

Institutional & Insider Ownership

89.8% of Genomic Health shares are held by institutional investors. 46.2% of Genomic Health shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for Genomic Health and Anacor Pharmaceuticals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Genomic Health 2 5 1 0 1.88
Anacor Pharmaceuticals 0 0 0 0 N/A

Genomic Health currently has a consensus price target of $31.57, indicating a potential upside of 12.76%. Given Genomic Health’s higher possible upside, equities research analysts plainly believe Genomic Health is more favorable than Anacor Pharmaceuticals.

Valuation and Earnings

This table compares Genomic Health and Anacor Pharmaceuticals’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Genomic Health $327.87 million 2.97 -$13.91 million ($0.12) -233.33
Anacor Pharmaceuticals N/A N/A N/A ($1.45) -68.32

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

Profitability

This table compares Genomic Health and Anacor Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Genomic Health -1.30% -1.79% -1.41%
Anacor Pharmaceuticals -92.08% -133.71% -38.09%

Risk & Volatility

Genomic Health has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500. Comparatively, Anacor Pharmaceuticals has a beta of 1.53, meaning that its stock price is 53% more volatile than the S&P 500.

Summary

Genomic Health beats Anacor Pharmaceuticals on 9 of the 10 factors compared between the two stocks.

Genomic Health Company Profile

Genomic Health, Inc. is a healthcare company that provides genomic-based diagnostic tests to personalize cancer treatment. The Company develops and commercializes genomic-based clinical laboratory services. The Company’s Oncotype IQ Genomic Intelligence Platform is consisted of its flagship line of Oncotype DX gene expression tests, as well as its Oncotype SEQ Liquid Select test. Its research and development activities are focused on developing a pipeline of tests to optimize the treatment of various cancers including breast, colon, prostate and other cancers. It offers its Oncotype DX tests as a clinical laboratory service, where it analyzes the expression levels of genes in tumor tissue samples and provides physicians with a quantitative gene expression profile expressed as a single quantitative score, which it calls a Recurrence Score for invasive breast cancer and colon cancer, a DCIS Score for ductal carcinoma in situ (DCIS), and a Genomic Prostate Score, for prostate cancer.

Anacor Pharmaceuticals Company Profile

Anacor Pharmaceuticals, Inc. is a biopharmaceutical company. The Company is focused on discovering, developing and commercializing small-molecule therapeutics derived from its boron chemistry platform. Its lead product development candidate is crisaborole topical ointment, approximately 2%, a non-steroidal topical anti-inflammatory phosphodiesterase-4 (PDE-4) inhibitor in development for the treatment of mild-to-moderate atopic dermatitis and psoriasis. Its product, KERYDIN (tavaborole) topical solution, approximately 5%, is an oxaborole antifungal approved by the United States Food and Drug Administration (FDA) for the topical treatment of onychomycosis of the toenails. It also has a pipeline of other internally discovered topical and systemic boron-based compounds in early-stages of research and development, which include AN3365. Its compound, AN5568 (SCYX-7158), is licensed to Drugs for Neglected Diseases initiative (DNDi) for the treatment of human African trypanosomiasis.

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