Head to Head Review: Galapagos NV (GLPG) and Foundation Medicine (FMI)
Galapagos NV (NASDAQ: GLPG) and Foundation Medicine (NASDAQ:FMI) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, valuation, dividends and profitability.
Volatility & Risk
Galapagos NV has a beta of 1.74, indicating that its share price is 74% more volatile than the S&P 500. Comparatively, Foundation Medicine has a beta of -0.12, indicating that its share price is 112% less volatile than the S&P 500.
This is a summary of current ratings for Galapagos NV and Foundation Medicine, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Galapagos NV currently has a consensus price target of $106.67, indicating a potential upside of 5.08%. Foundation Medicine has a consensus price target of $35.00, indicating a potential downside of 11.50%. Given Galapagos NV’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Galapagos NV is more favorable than Foundation Medicine.
This table compares Galapagos NV and Foundation Medicine’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Galapagos NV and Foundation Medicine’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Galapagos NV||$210.41 million||24.54||-$19.83 million||($0.65)||-156.17|
|Foundation Medicine||$119.58 million||11.91||-$140.79 million||($4.47)||-8.85|
Galapagos NV has higher revenue and earnings than Foundation Medicine. Galapagos NV is trading at a lower price-to-earnings ratio than Foundation Medicine, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
23.6% of Galapagos NV shares are owned by institutional investors. Comparatively, 31.8% of Foundation Medicine shares are owned by institutional investors. 2.7% of Foundation Medicine shares are owned 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.
Galapagos NV beats Foundation Medicine on 11 of the 13 factors compared between the two stocks.
About Galapagos NV
Galapagos NV is a Belgium-based biotechnology company. The Company’s activities are divided into two operating divisions: Research and Development (R & D) and Services. The R & D division is engaged in the discovery and development of small molecules. The Services division, offers target-to-drug discovery products and services to pharmaceutical and biotechnology companies and to patient foundations, encompassing target discovery and validation, screening and drug discovery through to delivery of pre-clinical candidates. As of December 31, 2011, Galapagos NV was, through its subsidiaries, active in Belgium, France, Switzerland, the Netherlands, the United Kingdom, Germany, the United States and Croatia. In April 2014, it sold BioFocus and Argenta service division operations to Charles River Laboratories International.
About Foundation Medicine
Foundation Medicine, Inc. is a molecular information company. The Company sells products that are enabled by its molecular information platform to physicians and biopharmaceutical companies. It is engaged in the business of delivering molecular information about cancer to its customers. Its platform includes various methods and algorithms for analyzing specimens across various types of cancer. Its suite of clinical molecular information products includes FoundationOne, which is used for solid tumors; FoundationOne Heme, which is used for blood-based cancers or hematologic malignancies, including leukemia, lymphoma, myeloma, pediatric cancers and advanced sarcoma; FoundationACT (Assay for Circulating Tumor DNA), which is a blood-based (liquid biopsy) assay that evaluates circulating tumor deoxyribonucleic acid (ctDNA), and FoundationFocus CDxBRCA, which is a companion diagnostic assay to aid in identifying women with ovarian cancer for whom treatment with Rubraca (rucaparib).
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