Analyzing Incyte (INCY) & Roka Bioscience (ROKA)

Incyte (NASDAQ: INCY) and Roka Bioscience (NASDAQ:ROKA) are both medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, valuation, earnings and dividends.

Profitability

This table compares Incyte and Roka Bioscience’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Incyte -10.90% -12.91% -7.41%
Roka Bioscience -409.83% -121.16% -68.51%

Insider & Institutional Ownership

90.9% of Incyte shares are held by institutional investors. Comparatively, 48.6% of Roka Bioscience shares are held by institutional investors. 17.7% of Incyte shares are held by company insiders. Comparatively, 29.2% of Roka Bioscience 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.

Volatility & Risk

Incyte has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500. Comparatively, Roka Bioscience has a beta of 2.23, meaning that its stock price is 123% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Incyte and Roka Bioscience, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Incyte 0 4 17 0 2.81
Roka Bioscience 0 0 1 0 3.00

Incyte currently has a consensus price target of $145.63, indicating a potential upside of 55.41%. Roka Bioscience has a consensus price target of $10.00, indicating a potential upside of 963.83%. Given Roka Bioscience’s stronger consensus rating and higher possible upside, analysts clearly believe Roka Bioscience is more favorable than Incyte.

Earnings and Valuation

This table compares Incyte and Roka Bioscience’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Incyte $1.11 billion 17.89 $104.22 million ($0.80) -117.14
Roka Bioscience $7.24 million 0.65 -$30.78 million ($8.80) -0.11

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

Summary

Incyte beats Roka Bioscience on 9 of the 13 factors compared between the two stocks.

About Incyte

Incyte Corporation is a biopharmaceutical company focused on the discovery, development and commercialization of therapeutics. Its portfolio includes compounds in various stages, ranging from preclinical to late-stage development, and commercialized products, such as JAKAFI (ruxolitinib) and ICLUSIG (ponatinib). JAKAFI (ruxolitinib) is indicated for the treatment of patients with intermediate or high risk myelofibrosis (MF) and for the treatment of patients with polycythemia vera (PV) having had an inadequate response to or are intolerant of hydroxyurea. As of December 31, 2016, the Food and Drug Administration had granted JAKAFI orphan drug status for MF, PV and essential thrombocythemia. The primary target for ICLUSIG is B Cell Receptor-ABL, an abnormal tyrosine kinase that is expressed in chronic myeloid leukemia and Philadelphia-chromosome positive acute lymphoblastic leukemia. The Company also has a portfolio of selective janus associated kinases 1 (JAK1) inhibitors.

About Roka Bioscience

Roka Bioscience, Inc. is a molecular diagnostics company. The Company is focused on the development and commercialization of molecular assay technologies for the detection of foodborne pathogens under the Atlas brand name. The Company offers Atlas Detection Assays and Atlas instrument in the North American food safety testing market and has rights to develop and commercialize its molecular testing solutions for a range of other industrial applications. The detection of foodborne pathogens is accomplished using culture-based assays, immunochemical-based assays and molecular-based assays. The Company sells its Atlas Detection Assays and related consumable supplies for use with its Atlas instruments. The Company’s Atlas instrument is an automated molecular diagnostic testing and a sample-in-result-out instrument that eliminates the need for batch processing and automates all aspects of molecular diagnostic testing on a single, integrated platform.

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