WuXi PharmaTech (Cayman) (NYSE: WX) and Icon (NASDAQ:ICLR) are both mid-cap biotechnology & medical research – nec companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, risk, dividends, earnings and valuation.
This is a summary of recent ratings and target prices for WuXi PharmaTech (Cayman) and Icon, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|WuXi PharmaTech (Cayman)||0||0||0||0||N/A|
Icon has a consensus target price of $125.40, suggesting a potential upside of 8.82%. Given Icon’s higher probable upside, analysts plainly believe Icon is more favorable than WuXi PharmaTech (Cayman).
Earnings & Valuation
This table compares WuXi PharmaTech (Cayman) and Icon’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|WuXi PharmaTech (Cayman)||N/A||N/A||N/A||$1.18||38.91|
|Icon||$1.76 billion||3.55||$281.48 million||$5.13||22.46|
Icon has higher revenue and earnings than WuXi PharmaTech (Cayman). Icon is trading at a lower price-to-earnings ratio than WuXi PharmaTech (Cayman), indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
89.2% of Icon shares are owned by institutional investors. 44.0% of Icon shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This table compares WuXi PharmaTech (Cayman) and Icon’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|WuXi PharmaTech (Cayman)||7.52%||6.93%||4.67%|
Icon beats WuXi PharmaTech (Cayman) on 10 of the 11 factors compared between the two stocks.
About WuXi PharmaTech (Cayman)
WuXi PharmaTech (Cayman) Inc. is a pharmaceutical, biotechnology and medical device research and development (R&D) services company, with operations in China and the United States. The Company provides a portfolio of laboratory and manufacturing services throughout the drug and medical device R&D process to its customers. It conducts its operations in two segments: Laboratory services and Manufacturing services. The Company offers Laboratory services for pharmaceutical, biotechnology and medical device companies. It offers Manufacturing services, which include the development of manufacturing processes and the production of advanced intermediates and active pharmaceutical ingredients (APIs) for use by pharmaceutical companies in preclinical and clinical trials of small-molecule products and in commercial products, as well as the production of biologic products.
ICON public limited company is a contract research organization (CRO), which is engaged in providing outsourced development services to the pharmaceutical, biotechnology and medical device industries. The Company is engaged in the strategic development, management and analysis of programs that support the various stages of the clinical development process, from compound selection to Phase I-IV clinical studies. Its services include clinical trials management, biometric activities, consulting, imaging, contract staffing, informatics and laboratory services. The Company’s information systems offerings include ICONIK, Firecrest, ADDPLAN, AptivAdvantage and Aptiv Insite. It conducts various laboratory tests on the patient’s blood, urine and other bodily fluids at appropriate intervals during the trial. The Company offers clinical development services, including investigator recruitment, patient registries, outcomes research, clinical data management, immunoassay development and others.