Head to Head Comparison: Neurocrine Biosciences (NBIX) & Gilead Sciences (GILD)

Neurocrine Biosciences (NASDAQ:NBIX) and Gilead Sciences (NASDAQ:GILD) are both medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, risk, valuation, earnings, profitability and institutional ownership.

Volatility and Risk

Neurocrine Biosciences has a beta of 1.87, indicating that its stock price is 87% more volatile than the S&P 500. Comparatively, Gilead Sciences has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500.

Valuation & Earnings

This table compares Neurocrine Biosciences and Gilead Sciences’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Neurocrine Biosciences $451.24 million 16.12 $21.11 million $0.22 364.00
Gilead Sciences $22.13 billion 3.57 $5.46 billion $6.15 10.06

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

Insider and Institutional Ownership

80.2% of Gilead Sciences shares are held by institutional investors. 4.3% of Neurocrine Biosciences shares are held by insiders. Comparatively, 0.2% of Gilead Sciences shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings for Neurocrine Biosciences and Gilead Sciences, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Neurocrine Biosciences 0 2 17 0 2.89
Gilead Sciences 0 7 11 1 2.68

Neurocrine Biosciences presently has a consensus target price of $103.73, indicating a potential upside of 29.53%. Gilead Sciences has a consensus target price of $81.88, indicating a potential upside of 32.33%. Given Gilead Sciences’ higher possible upside, analysts plainly believe Gilead Sciences is more favorable than Neurocrine Biosciences.

Dividends

Gilead Sciences pays an annual dividend of $2.52 per share and has a dividend yield of 4.1%. Neurocrine Biosciences does not pay a dividend. Gilead Sciences pays out 41.0% of its earnings in the form of a dividend. Gilead Sciences has raised its dividend for 3 consecutive years.

Profitability

This table compares Neurocrine Biosciences and Gilead Sciences’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Neurocrine Biosciences 4.68% 5.06% 2.36%
Gilead Sciences 24.65% 37.03% 12.44%

Summary

Gilead Sciences beats Neurocrine Biosciences on 11 of the 18 factors compared between the two stocks.

Neurocrine Biosciences Company Profile

Neurocrine Biosciences, Inc. discovers and develops pharmaceuticals for the treatment of neurological and endocrine-related diseases and disorders in the United States. The company offers INGREZZA (valbenazine), a vesicular monoamine transporter 2 inhibitor (VMAT2), which is used for the treatment of movement disorders; ORILISSA, a gonadotropin-releasing hormone (GnRH) antagonist for use in women's health. Its product candidates in clinical development include elagolix that is in Phase III clinical trial for Uterine Fibroids; opicapone, a catechol-O-methyltransferase inhibitor, which is in Phase III clinical trial that is used for in adjunct therapy and preparations of levodopa/DOPA decarboxylase inhibitors for adult patients with Parkinson's disease; and NBI-74788, which is in Phase II clinical trial for the treatment of congenital adrenal hyperplasia. The company's product candidates also comprise VMAT2 Inhibitors and which are in Phase I clinical trial for neurology/psychiatry disorders. It has collaborations and agreements with AbbVie Inc. to develop and commercialize elagolix and GnRH antagonists for women's and men's health; Mitsubishi Tanabe Pharma Corporation to develop and commercialize INGREZZA for movement disorders; and BIAL – Portela & Ca, S.A. to develop and commercialize opicapone for the treatment of human diseases and conditions, including Parkinson's disease. The company also has a research collaboration agreement with Jnana Therapeutics Inc. to discover novel small molecule therapeutics for multiple targets for central nervous system disorders; and a collaboration and license agreement with Voyager Therapeutics, Inc. for the research, development, and commercialization of VY-AADC program for Parkinson's disease and VY-FXN01 program for Friedreich's ataxia. Neurocrine Biosciences, Inc. was founded in 1992 and is headquartered in San Diego, California.

Gilead Sciences Company Profile

Gilead Sciences, Inc. is a biopharmaceutical company, which engages in the research, development, and commercialization of medicines in areas of unmet medical need. Its primary areas of focus include human immunodeficiency virus, acquired immunodeficiency syndrome, liver diseases, hematology, oncology, and inflammation and respiratory diseases. It offers antiviral products under Harvoni, Genvoya, Epclusa, Truvada, Atripla, Descovy, Stribild, Viread, Odefsey, Complera/Eviplera, Sovaldi, and Vosevi brands. The company was founded by Michael L. Riordan on June 22, 1987 and is headquartered in Foster City, CA.

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