Regulus Therapeutics (NASDAQ: RGLS) and Covance (NYSE:CVD) are both medical companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, dividends and profitabiliy.

Insider and Institutional Ownership

38.5% of Regulus Therapeutics shares are held by institutional investors. 4.8% of Regulus Therapeutics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Regulus Therapeutics and Covance’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Regulus Therapeutics $257,999.00 191.91 -$77.20 million ($1.54) -0.60
Covance N/A N/A N/A N/A N/A

Covance has higher revenue, but lower earnings than Regulus Therapeutics.

Profitability

This table compares Regulus Therapeutics and Covance’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Regulus Therapeutics -31,460.47% -173.20% -90.45%
Covance 7.70% 12.64% 8.17%

Analyst Ratings

This is a summary of recent recommendations for Regulus Therapeutics and Covance, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Regulus Therapeutics 0 5 1 0 2.17
Covance 0 0 0 0 N/A

Regulus Therapeutics currently has a consensus price target of $4.50, indicating a potential upside of 383.35%. Given Regulus Therapeutics’ higher probable upside, equities analysts plainly believe Regulus Therapeutics is more favorable than Covance.

Summary

Regulus Therapeutics beats Covance on 5 of the 8 factors compared between the two stocks.

About Regulus Therapeutics

Regulus Therapeutics Inc. is a biopharmaceutical company focused on discovering and developing drugs that target microRNAs to treat a range of diseases. The Company uses its microRNA product platform to develop chemically modified, single-stranded oligonucleotides that the Company calls anti-miRs to modulate microRNAs and return diseased cells to their healthy state. The Company’s Regulus microMarkers division is focused on identifying microRNAs as biomarkers of human disease. It has a research collaboration with Biogen focused on the discovery of microRNAs as biomarkers for multiple sclerosis and has completed research for another pharmaceutical company to explore microRNAs as biomarkers for specific patient populations. The Company is developing RG-101, an N-Acetylgalactosamine (GalNAc)-conjugated anti-miR targeting miR-122; RG-012, an anti-miR targeting microRNA-21 for the treatment of Alport syndrome, and RG-125, a GalNAc-conjugated anti-miR targeting microRNA-103/107.

About Covance

Covance Inc. is engaged in drug development services. The Company provides a range of early-stage and late-stage product development services to the pharmaceutical and biotechnology industries. The Company also provides laboratory testing services to the chemical, agrochemical and food industries. The Company operates in two segments: early development services, and late-stage development services. The early development services include lead optimization services, preclinical services and clinical pharmacology services. The late-stage development services include central laboratory, Phase II-IV clinical development, and market access services.

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