Galapagos (NASDAQ: GLPG) and Medpace (NASDAQ:MEDP) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, earnings, dividends and risk.
This is a summary of current ratings and price targets for Galapagos and Medpace, as reported by MarketBeat.
||Strong Buy Ratings
Galapagos currently has a consensus price target of $115.17, indicating a potential upside of 6.26%. Medpace has a consensus price target of $35.75, indicating a potential downside of 3.64%. Given Galapagos’ stronger consensus rating and higher probable upside, research analysts plainly believe Galapagos is more favorable than Medpace.
Risk and Volatility
Galapagos has a beta of 1.58, meaning that its stock price is 58% more volatile than the S&P 500. Comparatively, Medpace has a beta of -1.04, meaning that its stock price is 204% less volatile than the S&P 500.
Earnings & Valuation
This table compares Galapagos and Medpace’s revenue, earnings per share and valuation.
||Earnings Per Share
Galapagos has higher earnings, but lower revenue than Medpace. Galapagos is trading at a lower price-to-earnings ratio than Medpace, indicating that it is currently the more affordable of the two stocks.
This table compares Galapagos and Medpace’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Institutional & Insider Ownership
19.7% of Galapagos shares are owned by institutional investors. Comparatively, 16.8% of Medpace shares are owned by institutional investors. 2.9% of Galapagos shares are owned by company insiders. Comparatively, 25.8% of Medpace shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Galapagos NV is a Belgium-based biotechnology company. The Company’s activities are divided into two operating divisions: Research and Development (R & D) and Services. The R & D division is engaged in the discovery and development of small molecules. The Services division, offers target-to-drug discovery products and services to pharmaceutical and biotechnology companies and to patient foundations, encompassing target discovery and validation, screening and drug discovery through to delivery of pre-clinical candidates. As of December 31, 2011, Galapagos NV was, through its subsidiaries, active in Belgium, France, Switzerland, the Netherlands, the United Kingdom, Germany, the United States and Croatia. In April 2014, it sold BioFocus and Argenta service division operations to Charles River Laboratories International.
Medpace Holdings, Inc. is a clinical contract research organization. The Company provides clinical research-based drug and medical device development services. The Company partners with pharmaceutical, biotechnology, and medical device companies in the development and execution of clinical trials. The Company’s drug development services focus on full service Phase I-IV clinical development services and include development plan design, coordinated central laboratory, project management, regulatory affairs, clinical monitoring, data management and analysis, pharmacovigilance new drug application submissions, and post-marketing clinical support. The Company also provides bio-analytical laboratory services, clinical human pharmacology, imaging services, and electrocardiography reading support for clinical trials. The Company’s operations are principally based in North America, Europe, and Asia.
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