Exelixis (NASDAQ:EXEL) versus PPD (NASDAQ:PPD) Critical Comparison

Exelixis (NASDAQ:EXEL) and PPD (NASDAQ:PPD) are both mid-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, analyst recommendations and earnings.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Exelixis and PPD, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Exelixis 0 3 8 0 2.73
PPD 0 0 14 0 3.00

Exelixis currently has a consensus price target of $25.64, suggesting a potential upside of 62.56%. PPD has a consensus price target of $32.46, suggesting a potential upside of 85.49%. Given PPD’s stronger consensus rating and higher possible upside, analysts plainly believe PPD is more favorable than Exelixis.

Earnings and Valuation

This table compares Exelixis and PPD’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Exelixis $967.78 million 4.98 $321.01 million $1.02 15.46
PPD $4.03 billion 1.51 $341.61 million $0.98 17.86

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

Institutional & Insider Ownership

78.6% of Exelixis shares are held by institutional investors. 4.5% of Exelixis shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Exelixis 33.17% 20.83% 18.73%
PPD N/A N/A N/A

Summary

Exelixis beats PPD on 7 of the 13 factors compared between the two stocks.

About Exelixis

Exelixis, Inc., an oncology-focused biotechnology company, focuses on the discovery, development, and commercialization of new medicines to treat cancers in the United States. 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. The company also offers COTELLIC, an inhibitor of MEK as a combination regimen to treat advanced melanoma; and MINNEBRO, an oral non-steroidal selective blocker of the mineralocorticoid receptor for the treatment of hypertension in Japan. Exelixis, Inc. has collaboration and license agreement with Ipsen Pharma SAS, Genentech, Inc., GlaxoSmithKline, Bristol-Myers Squibb Company, Merck, Invenra, Inc., StemSynergy Therapeutics, Inc., and Daiichi Sankyo Company, Limited. 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 Alameda, California.

About PPD

PPD, Inc. provides drug development services to the biopharmaceutical industry worldwide. The company offers clinical development and laboratory services to the pharmaceutical, biotechnology, and medical device and government organizations, as well as other industry participants. It operates in two segments, Clinical Development Services and Laboratory Services. The Clinical Development Services segment provides product development and consulting, early development, Phases II-IV clinical trial management, accelerated enrollment, peri- and post-approval, and medical communications services. The Laboratory Services segment offers bioanalytical, biomarker, vaccine science, good manufacturing practice, and central laboratory services. The company operates in North America, Latin America, Europe, the Middle East, Africa, and the Asia-Pacific. PPD, Inc. was founded in 1985 and is headquartered in Wilmington, North Carolina.

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