Critical Analysis: Polarityte (NASDAQ:PTE) vs. Neurocrine Biosciences (NASDAQ:NBIX)

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

Profitability

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

Net Margins Return on Equity Return on Assets
Polarityte N/A -86.24% -77.58%
Neurocrine Biosciences 2.98% 0.47% 0.22%

Analyst Recommendations

This is a summary of recent ratings and target prices for Polarityte and Neurocrine Biosciences, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Polarityte 1 0 6 0 2.71
Neurocrine Biosciences 0 3 16 0 2.84

Polarityte presently has a consensus target price of $30.29, suggesting a potential upside of 515.56%. Neurocrine Biosciences has a consensus target price of $107.11, suggesting a potential upside of 12.19%. Given Polarityte’s higher possible upside, analysts clearly believe Polarityte is more favorable than Neurocrine Biosciences.

Institutional & Insider Ownership

41.6% of Polarityte shares are held by institutional investors. Comparatively, 95.8% of Neurocrine Biosciences shares are held by institutional investors. 43.3% of Polarityte shares are held by insiders. Comparatively, 4.3% of Neurocrine Biosciences shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Polarityte and Neurocrine Biosciences’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Polarityte $1.56 million 77.97 -$65.44 million ($4.86) -1.01
Neurocrine Biosciences $451.24 million 19.38 $21.11 million $0.22 433.95

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

Risk and Volatility

Polarityte has a beta of 1.48, meaning that its share price is 48% more volatile than the S&P 500. Comparatively, Neurocrine Biosciences has a beta of 1.34, meaning that its share price is 34% more volatile than the S&P 500.

Summary

Neurocrine Biosciences beats Polarityte on 10 of the 14 factors compared between the two stocks.

About Polarityte

PolarityTE, Inc., a biotechnology and regenerative biomaterials company, focuses on discovering, designing, and developing a range of regenerative tissue products and biomaterials for the fields of medicine, biomedical engineering, and material sciences in the United States. The company operates in two segments, Regenerative Medicine and Contract Services. It offers SkinTE, a tissue product for treatment of defects of the skin, as well as contract research services. The company also develops OsteoTE, an autologous homologous bone regeneration product; and CartTE, an autologous cartilage regeneration product. In addition, it develops AdipoTE to optimize the delivery of autologous fat; AngioTE for vascular regeneration; NeuralTE for peripheral nerve injuries of the extremities, as well as for patients with neuromas or chronic compression due to joint replacements, migraines, craniofacial injuries, carpal tunnel syndrome, and those who have undergone hernia or abdominal-based procedures; UroTE for the delivery of autologous urogenital epithelium and submucosa; LiverTE to address various causes of liver failure; and BowelTE to deliver an optimized autologous construct to aid in the regeneration of bowel tissue. PolarityTE, Inc. is headquartered in Salt Lake City, Utah.

About Neurocrine Biosciences

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.

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