Financial Review: Incyte (INCY) versus Charles River Laboratories Intl. (NYSE:CRL)

Charles River Laboratories Intl. (NYSE: CRL) and Incyte (NASDAQ:INCY) are both medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, earnings, valuation and dividends.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Charles River Laboratories Intl. and Incyte, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Charles River Laboratories Intl. 0 5 8 0 2.62
Incyte 0 8 14 0 2.64

Charles River Laboratories Intl. presently has a consensus target price of $120.46, suggesting a potential downside of 1.47%. Incyte has a consensus target price of $105.71, suggesting a potential upside of 54.01%. Given Incyte’s stronger consensus rating and higher possible upside, analysts clearly believe Incyte is more favorable than Charles River Laboratories Intl..

Insider and Institutional Ownership

97.6% of Charles River Laboratories Intl. shares are owned by institutional investors. Comparatively, 93.1% of Incyte shares are owned by institutional investors. 2.1% of Charles River Laboratories Intl. shares are owned by insiders. Comparatively, 17.2% of Incyte shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk and Volatility

Charles River Laboratories Intl. has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500. Comparatively, Incyte has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500.

Earnings & Valuation

This table compares Charles River Laboratories Intl. and Incyte’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Charles River Laboratories Intl. $1.86 billion 3.15 $123.35 million $5.27 23.20
Incyte $1.54 billion 9.47 -$313.14 million $0.64 107.25

Charles River Laboratories Intl. has higher revenue and earnings than Incyte. Charles River Laboratories Intl. is trading at a lower price-to-earnings ratio than Incyte, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Charles River Laboratories Intl. and Incyte’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Charles River Laboratories Intl. 6.78% 24.96% 9.02%
Incyte -10.90% -0.74% -0.52%

About Charles River Laboratories Intl.

Charles River Laboratories International, Inc., an early-stage contract research company, provides drug discovery, non-clinical development, and safety testing services worldwide. It operates through three segments: Research Models and Services (RMS), Discovery and Safety Assessment (DSA), and Manufacturing Support (Manufacturing). The RMS segment produces and sells research model strains primarily genetically and microbiologically defined purpose-bred rats and mice for use by researchers. This segment also provides a range of services to assist its clients in supporting the use of research models in research and screening non-clinical drug candidates comprising genetically engineered models and services, insourcing solutions, and research animal diagnostic services. The DSA segment offers early and in vivo discovery services for the identification of a druggable target through delivery of non-clinical drug and therapeutic candidates ready for safety assessment; and safety assessment services, which comprise bioanalysis, pharmacokinetics, drug metabolism, toxicology, and pathology services. The Manufacturing segment provides in vitro methods for conventional and rapid quality control testing of sterile and non-sterile biopharmaceuticals, and consumer products. It also offers specialized testing of biologics and devices that are outsourced by pharmaceutical and biotechnology companies; and avian vaccine services that provide specific-pathogen-free fertile chicken eggs, SPF chickens, and diagnostic products used to manufacture vaccines. The company serves pharmaceutical and biotechnology, agricultural and chemical, life science and veterinary medicine, and medical device companies; and contract research and contract manufacturing organizations, diagnostic and other commercial entities, hospitals, academic institutions, and government agencies. Charles River Laboratories International, Inc. was founded in 1947 and is headquartered in Wilmington, Massachusetts.

About Incyte

Incyte Corporation, a biopharmaceutical company, focuses on the discovery, development, and commercialization of proprietary therapeutics in the United States. It offers JAKAFI, a drug for the treatment of myelofibrosis and polycythemia vera cancers; and ICLUSIG, a kinase inhibitor for the treatment of chronic myeloid leukemia and philadelphia-chromosome positive acute lymphoblastic leukemia. The company's clinical stage products include ruxolitinib, a drug that is in pivotal Phase II clinical trial for steroid-refractory acute graft-versus-host-diseases (GVHD); and Phase II clinical trial for the treatment of essential thrombocythemia, as well as Phase III clinical trials for steroid-refractory acute and chronic GVHDs. In addition, it is developing itacitinib that is in Phase I/II clinical trial in combination with osimertinib for non-small cell lung cancer (NSCLC), as well as Phase III clinical trial for naïve acute GVHD; epacadostat that is in Phase III clinical trails for the treatment of melanoma, renal, bladder, head and neck, non-small cell lung cancers; MGA012 that is in Phase I clinical trial for solid tumors; INCB50465, which is in Phase II clinical trials for the treatment of diffuse large b-cell lymphoma, follicular lymphoma, marginal zone lymphoma, and mantel cell lymphoma; and INCB54828 that is in Phase II clinical trials for the bladder cancer, cholangiocarcinoma, and 8p11 myeloproliferative syndrome. The company markets its JAKAFI product through a network of specialty pharmacy providers and wholesalers. It has collaboration agreements with Novartis International Pharmaceutical Ltd.; Eli Lilly and Company; Agenus Inc.; Jiangsu Hengrui Medicine Co., Ltd.; Merus N.V.; Calithera Biosciences, Inc; Pfizer; and MacroGenics, Inc. Incyte Corporation was founded in 1991 and is headquartered in Wilmington, Delaware.

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