Reviewing Exelixis (EXEL) and Medpace (MEDP)

Exelixis (NASDAQ:EXEL) and Medpace (NASDAQ:MEDP) are both medical companies, but which is the better business? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, valuation, analyst recommendations and dividends.

Analyst Recommendations

This is a breakdown of recent ratings for Exelixis and Medpace, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Exelixis 1 2 8 0 2.64
Medpace 0 5 2 0 2.29

Exelixis currently has a consensus target price of $30.38, indicating a potential upside of 86.69%. Medpace has a consensus target price of $42.83, indicating a potential downside of 18.33%. Given Exelixis’ stronger consensus rating and higher probable upside, analysts clearly believe Exelixis is more favorable than Medpace.

Profitability

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

Net Margins Return on Equity Return on Assets
Exelixis 48.17% 65.68% 43.81%
Medpace 10.44% 14.22% 7.79%

Volatility & Risk

Exelixis has a beta of 1.93, indicating that its share price is 93% more volatile than the S&P 500. Comparatively, Medpace has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500.

Valuation and Earnings

This table compares Exelixis and Medpace’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Exelixis $452.48 million 10.72 $154.22 million $0.51 31.90
Medpace $436.15 million 4.28 $39.12 million $1.52 34.51

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

Insider and Institutional Ownership

80.7% of Exelixis shares are owned by institutional investors. Comparatively, 39.3% of Medpace shares are owned by institutional investors. 4.8% of Exelixis shares are owned by company insiders. Comparatively, 29.5% of Medpace shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Exelixis beats Medpace on 11 of the 14 factors compared between the two stocks.

Exelixis Company Profile

Exelixis, Inc., a biotechnology company, engages in the discovery, development, and commercialization of new medicines to enhance care and outcomes for people with cancer. 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. It also offers COTELLIC tablets, an inhibitor of MEK in combination with vemurafenib for the treatment of patients with BRAF V600E or V600K mutation-positive advanced melanoma in the United States; and in combination with vemurafenib in other territories, including the European Union, Switzerland, Canada, Australia, and Brazil. Exelixis, Inc. has collaboration and license agreement with Ipsen Pharma SAS, Genentech, Inc., GlaxoSmithKline, Bristol-Myers Squibb Company, Sanofi, Merck, Daiichi Sankyo Company Limited, and Invenra, Inc. 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 South San Francisco, California.

Medpace Company Profile

Medpace Holdings, Inc., a clinical contract research organization, provides scientifically-driven outsourced clinical development services to the biotechnology, pharmaceutical, and medical device industries worldwide. The company offers a suite of services supporting the clinical development process from Phase I to Phase IV in a range of therapeutic areas. Its clinical development services include medical affairs, clinical trial management, feasibility and start-up study, clinical monitoring, global regulatory affairs, medical writing, biometrics, pharmacovigilance, core laboratory, and quality assurance. Medpace Holdings, Inc. was founded in 1992 and is headquartered in Cincinnati, Ohio.

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