Critical Survey: Incyte (INCY) and Syneos Health (SYNH)

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

Earnings & Valuation

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This table compares Incyte and Syneos Health’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Incyte $1.54 billion 9.71 -$313.14 million $0.64 110.09
Syneos Health $2.67 billion 1.49 -$138.46 million $1.94 19.59

Syneos Health has higher revenue and earnings than Incyte. Syneos Health is trading at a lower price-to-earnings ratio than Incyte, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Incyte has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500. Comparatively, Syneos Health has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500.

Insider & Institutional Ownership

93.6% of Incyte shares are owned by institutional investors. 17.2% of Incyte shares are owned by company insiders. Comparatively, 0.2% of Syneos Health shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Incyte and Syneos Health’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Incyte -20.38% -11.85% -8.05%
Syneos Health -5.18% 10.78% 4.22%

Analyst Recommendations

This is a summary of recent ratings and price targets for Incyte and Syneos Health, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Incyte 0 8 15 0 2.65
Syneos Health 0 3 7 0 2.70

Incyte currently has a consensus price target of $118.14, indicating a potential upside of 67.67%. Syneos Health has a consensus price target of $50.88, indicating a potential upside of 33.88%. Given Incyte’s higher possible upside, research analysts clearly believe Incyte is more favorable than Syneos Health.

Summary

Syneos Health beats Incyte on 8 of the 14 factors compared between the two stocks.

About Incyte

Incyte Corporation, a biopharmaceutical company, focuses on the discovery, development, and commercialization of proprietary therapeutics in the United States. It offers JAKAFI, a drug for the treatment of myelofibrosis and polycythemia vera cancers; and ICLUSIG, a kinase inhibitor for the treatment of chronic myeloid leukemia and philadelphia-chromosome positive acute lymphoblastic leukemia. The company's clinical stage products include ruxolitinib, a drug that is in pivotal Phase II clinical trial for steroid-refractory acute graft-versus-host-diseases (GVHD); and Phase II clinical trial for the treatment of essential thrombocythemia, as well as Phase III clinical trials for steroid-refractory acute and chronic GVHDs. In addition, it is developing itacitinib that is in Phase I/II clinical trial in combination with osimertinib for non-small cell lung cancer (NSCLC), as well as Phase III clinical trial for naïve acute GVHD; epacadostat that is in Phase III clinical trails for the treatment of melanoma, renal, bladder, head and neck, non-small cell lung cancers; MGA012 that is in Phase I clinical trial for solid tumors; INCB50465, which is in Phase II clinical trials for the treatment of diffuse large b-cell lymphoma, follicular lymphoma, marginal zone lymphoma, and mantel cell lymphoma; and INCB54828 that is in Phase II clinical trials for the bladder cancer, cholangiocarcinoma, and 8p11 myeloproliferative syndrome. The company markets its JAKAFI product through a network of specialty pharmacy providers and wholesalers. It has collaboration agreements with Novartis International Pharmaceutical Ltd.; Eli Lilly and Company; Agenus Inc.; Jiangsu Hengrui Medicine Co., Ltd.; Merus N.V.; Calithera Biosciences, Inc; Pfizer; and MacroGenics, Inc. Incyte Corporation was founded in 1991 and is headquartered in Wilmington, Delaware.

About Syneos Health

Syneos Health, Inc. operates as an integrated biopharmaceutical solutions company in North America, Europe, the Middle East, Africa, the Asia-Pacific, and Latin America. It operates through two segments, Clinical Solutions and Commercial Solutions. The Clinical Solutions segment offers various clinical development services spanning Phase I to Phase IV, including full-service global studies, as well as unbundled service offerings, such as clinical monitoring, investigator recruitment, patient recruitment, data management, and study startup to assist customers with drug development process. The Commercial Solutions segment provides commercialization services, including outsourced field selling solutions, medication adherence, communications, and consulting services. Its customers include small, mid-sized, and large companies in the pharmaceutical, biotechnology, and medical device industries. The company was formerly known as INC Research Holdings, Inc. and changed its name to Syneos Health, Inc. in January 2018. Syneos Health, Inc. was incorporated in 2010 and is headquartered in Raleigh, North Carolina.

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