Critical Comparison: Senomyx (SNMX) & Exelixis (EXEL)

Senomyx (NASDAQ: EXEL) and Exelixis (NASDAQ:EXEL) are both consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, profitability, risk, analyst recommendations and dividends.

Valuation and Earnings

This table compares Senomyx and Exelixis’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Senomyx $29.32 million 1.73 -$1.26 million ($0.03) -35.00
Exelixis $452.48 million 12.94 $154.22 million $0.51 38.51

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

Profitability

This table compares Senomyx and Exelixis’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Senomyx -9.11% -15.80% -10.48%
Exelixis 48.17% 65.68% 43.81%

Analyst Ratings

This is a breakdown of recent recommendations for Senomyx and Exelixis, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Senomyx 0 0 0 0 N/A
Exelixis 0 2 8 0 2.80

Exelixis has a consensus price target of $33.63, indicating a potential upside of 71.21%. Given Exelixis’ higher possible upside, analysts clearly believe Exelixis is more favorable than Senomyx.

Risk & Volatility

Senomyx has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500. Comparatively, Exelixis has a beta of 2.02, meaning that its share price is 102% more volatile than the S&P 500.

Insider & Institutional Ownership

30.2% of Senomyx shares are held by institutional investors. Comparatively, 77.6% of Exelixis shares are held by institutional investors. 13.0% of Senomyx shares are held by company insiders. Comparatively, 4.8% of Exelixis shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Exelixis beats Senomyx on 12 of the 13 factors compared between the two stocks.

Senomyx Company Profile

Senomyx, Inc. discovers, develops, and commercializes flavor ingredients and natural high intensity sweeteners primarily for the packaged food, beverage, and ingredient supply industries in the United States. The company develops and/or commercializes sweet, savory and salt flavor ingredients, bitter blockers and cooling agents. It sells various flavor ingredients directly to flavor companies. The company has collaboration agreements with Ajinomoto Co., Inc.; Firmenich SA; and PepsiCo, Inc. Senomyx, Inc. was founded in 1998 and is headquartered in San Diego, California.

Exelixis Company Profile

Exelixis, Inc., a biotechnology company, engages in the discovery, development, and commercialization of new medicines to enhance care and outcomes for people with cancer. The company's products include CABOMETYX tablets for the treatment of patients with advanced renal cell carcinoma who received prior anti-angiogenic therapy; and COMETRIQ capsules for the treatment of patients with progressive and metastatic medullary thyroid cancer. Its CABOMETYX and COMETRIQ are derived from cabozantinib, an inhibitor of multiple tyrosine kinases, including MET, AXL, RET, and VEGF receptors. It also offers COTELLIC tablets, an inhibitor of MEK in combination with vemurafenib for the treatment of patients with BRAF V600E or V600K mutation-positive advanced melanoma in the United States; and in combination with vemurafenib in other territories, including the European Union, Switzerland, Canada, Australia, and Brazil. Exelixis, Inc. has collaboration and license agreement with Ipsen Pharma SAS, Genentech, Inc., GlaxoSmithKline, Bristol-Myers Squibb Company, Sanofi, Merck, Daiichi Sankyo Company Limited, and Invenra, Inc. The company was formerly known as Exelixis Pharmaceuticals, Inc. and changed its name to Exelixis, Inc. in February 2000. Exelixis, Inc. was founded in 1994 and is headquartered in South San Francisco, California.

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