Lion Biotechnologies (IOVA) vs. Invitae Corporation (NVTA) Head to Head Review

Lion Biotechnologies (NASDAQ: IOVA) and Invitae Corporation (NYSE:NVTA) are both small-cap healthcare companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, institutional ownership, earnings, profitability and risk.

Valuation and Earnings

This table compares Lion Biotechnologies and Invitae Corporation’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Lion Biotechnologies N/A N/A -$52.89 million ($1.31) -6.34
Invitae Corporation $25.05 million 17.73 -$100.25 million ($2.55) -3.29

Lion Biotechnologies has higher revenue, but lower earnings than Invitae Corporation. Lion Biotechnologies is trading at a lower price-to-earnings ratio than Invitae Corporation, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

65.6% of Lion Biotechnologies shares are held by institutional investors. Comparatively, 59.2% of Invitae Corporation shares are held by institutional investors. 13.2% of Lion Biotechnologies shares are held by insiders. Comparatively, 9.9% of Invitae Corporation shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Lion Biotechnologies and Invitae Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lion Biotechnologies 0 0 10 0 3.00
Invitae Corporation 0 0 3 0 3.00

Lion Biotechnologies presently has a consensus target price of $15.31, suggesting a potential upside of 84.49%. Invitae Corporation has a consensus target price of $14.33, suggesting a potential upside of 70.84%. Given Lion Biotechnologies’ higher possible upside, equities analysts plainly believe Lion Biotechnologies is more favorable than Invitae Corporation.

Profitability

This table compares Lion Biotechnologies and Invitae Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lion Biotechnologies N/A -53.59% -51.25%
Invitae Corporation -206.95% -115.25% -67.79%

Summary

Lion Biotechnologies beats Invitae Corporation on 9 of the 10 factors compared between the two stocks.

Lion Biotechnologies Company Profile

Iovance Biotherapeutics, Inc., formerly Lion Biotechnologies, Inc., is a clinical-stage biopharmaceutical company. The Company is focused on the development and commercialization of cancer immunotherapy products designed to harness the power of a patient’s own immune system to eradicate cancer cells. The Company’s lead program is an adoptive cell therapy utilizing tumor-infiltrating lymphocytes, which are T cells derived from patients’ tumors, for the treatment of metastatic melanoma. As of December 31, 2016, it had an on-going Phase II clinical trial of its lead product candidate, LN-144, TIL for the treatment of metastatic melanoma. The Company is developing LN-145 to treat cervical and head and neck cancers. It is collaborating with the National Cancer Institute to evaluate unmodified TIL in other solid tumor indications, such as ocular melanoma, bladder, breast and lung cancer. It is collaborating with the NCI to evaluate TIL in combination with the checkpoint inhibitor, Keytruda.

Invitae Corporation Company Profile

Invitae Corporation utilizes an integrated portfolio of laboratory processes, software tools and informatics capabilities to process deoxyribonucleic acid (DNA)-containing samples, analyze information about patient-specific genetic variation and generate test reports for clinicians and their patients. As of December 31, 2016, the Company’s products consisted of assays totaling over 1,100 genes that could be used for multiple indications, including hereditary cancer, neurological disorders, cardiovascular disorders, pediatric disorders and other hereditary conditions. The Company offers panels for a range of hereditary conditions in cancer, cardiology, neuromuscular, pediatric and rare diseases. The Company focuses on genetic testing, genome network and genome management. The Company offers full gene sequencing and deletion/duplication analysis as a standard for all of its tests. The Company holds interests in AltaVoice, a patient-centered data company.

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