INC Research Holdings (NASDAQ: INCR) and Nektar Therapeutics (NASDAQ:NKTR) are both mid-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, dividends, analyst recommendations and profitabiliy.
This is a breakdown of current ratings for INC Research Holdings and Nektar Therapeutics, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|INC Research Holdings||0||4||4||0||2.50|
INC Research Holdings currently has a consensus target price of $62.50, suggesting a potential upside of 9.55%. Nektar Therapeutics has a consensus target price of $26.29, suggesting a potential upside of 21.69%. Given Nektar Therapeutics’ stronger consensus rating and higher possible upside, analysts plainly believe Nektar Therapeutics is more favorable than INC Research Holdings.
Earnings and Valuation
This table compares INC Research Holdings and Nektar Therapeutics’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|INC Research Holdings||$1.03 billion||3.00||$230.43 million||$2.09||27.30|
|Nektar Therapeutics||$131.28 million||25.53||-$142.14 million||($1.38)||-15.65|
INC Research Holdings has higher revenue and earnings than Nektar Therapeutics. Nektar Therapeutics is trading at a lower price-to-earnings ratio than INC Research Holdings, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
INC Research Holdings has a beta of 1.47, meaning that its share price is 47% more volatile than the S&P 500. Comparatively, Nektar Therapeutics has a beta of 1.48, meaning that its share price is 48% more volatile than the S&P 500.
This table compares INC Research Holdings and Nektar Therapeutics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|INC Research Holdings||7.37%||43.17%||10.10%|
Insider and Institutional Ownership
93.9% of Nektar Therapeutics shares are owned by institutional investors. 0.2% of INC Research Holdings shares are owned by company insiders. Comparatively, 5.4% of Nektar Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Nektar Therapeutics beats INC Research Holdings on 7 of the 13 factors compared between the two stocks.
About INC Research Holdings
INC Research Holdings, Inc. is a global contract research organization (CRO). The Company focuses on Phase I to Phase IV clinical development services for the biopharmaceutical and medical device industries. The Company operates through two segments: Clinical Development Services and Phase I Services. The Company’s Clinical Development Services segment offers a range of clinical development services, including full-service global studies, as well as ancillary services, such as clinical monitoring, investigator recruitment, patient recruitment, data management, study reports to assist customers with their drug development process, quality assurance audits and specialized consulting services. The Phase I Services segment focuses on clinical development services for Phase I trials, which include scientific exploratory medicine, first-in-human studies through proof-of-concept stages and support for Phase I studies in established compounds.
About Nektar Therapeutics
Nektar Therapeutics is a biopharmaceutical company that discovers and develops medicines in areas of high unmet medical need. The Company’s research and development pipeline of new investigational drugs includes treatments for cancer, auto-immune disease and chronic pain. It leverages its chemistry platform to discover and design new drug candidates. These drug candidates utilize its polymer conjugate technology platforms, which are designed to enable the development of new molecular entities that target known mechanisms of action. Its programs include Immuno-oncology (I-O), Immunology, Pain-NKTR-181 and Oncology-ONZEALD. It is developing medicines designed to directly or indirectly modulate the activity of key immune cells, such as cytotoxic T cells and Natural Killer (NK) cells, to increase their numbers and improve their function to recognize and attack cancer cells.
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