Pulse Biosciences (NASDAQ:PLSE – Get Free Report) and Pacific Biosciences of California (NASDAQ:PACB – Get Free Report) are both small-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, risk, analyst recommendations and institutional ownership.
Profitability
This table compares Pulse Biosciences and Pacific Biosciences of California’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Pulse Biosciences | N/A | -63.19% | -54.98% |
| Pacific Biosciences of California | -336.40% | -66.75% | -16.90% |
Earnings and Valuation
This table compares Pulse Biosciences and Pacific Biosciences of California”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Pulse Biosciences | $700,000.00 | 1,614.24 | -$53.58 million | ($1.05) | -15.99 |
| Pacific Biosciences of California | $156.11 million | 4.31 | -$309.85 million | ($2.29) | -0.98 |
Pulse Biosciences has higher earnings, but lower revenue than Pacific Biosciences of California. Pulse Biosciences is trading at a lower price-to-earnings ratio than Pacific Biosciences of California, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
77.0% of Pulse Biosciences shares are held by institutional investors. 74.6% of Pulse Biosciences shares are held by company insiders. Comparatively, 2.5% of Pacific Biosciences of California shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of recent ratings and target prices for Pulse Biosciences and Pacific Biosciences of California, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Pulse Biosciences | 1 | 0 | 1 | 0 | 2.00 |
| Pacific Biosciences of California | 1 | 4 | 3 | 0 | 2.25 |
Pulse Biosciences currently has a consensus price target of $22.00, indicating a potential upside of 31.03%. Pacific Biosciences of California has a consensus price target of $1.90, indicating a potential downside of 15.18%. Given Pulse Biosciences’ higher possible upside, equities analysts plainly believe Pulse Biosciences is more favorable than Pacific Biosciences of California.
Risk and Volatility
Pulse Biosciences has a beta of 1.8, meaning that its stock price is 80% more volatile than the S&P 500. Comparatively, Pacific Biosciences of California has a beta of 2.1, meaning that its stock price is 110% more volatile than the S&P 500.
Summary
Pulse Biosciences beats Pacific Biosciences of California on 8 of the 14 factors compared between the two stocks.
About Pulse Biosciences
Pulse Biosciences, Inc. operates as a novel bioelectric medicine company. The company offers CellFX System, a tunable, software-enabled, and console-based platform that delivers nano second duration pulses of electrical energy to non-thermally clear targeted cells while sparing adjacent non-cellular tissue to treat a various medical condition by using its Nano-Pulse Stimulation technology. The company was formerly known as Electroblate, Inc. and changed its name to Pulse Biosciences, Inc. in December 2015. Pulse Biosciences, Inc. was incorporated in 2014 and is headquartered in Hayward, California.
About Pacific Biosciences of California
Pacific Biosciences of California, Inc. designs, develops, and manufactures sequencing solution to resolve genetically complex problems. The company provides sequencing systems; consumable products, including single molecule real-time (SMRT) technology; long-red sequencing; and various reagent kits designed for specific workflow, such as preparation kit to convert DNA into SMRTbell double-stranded DNA library formats, including molecular biology reagents, such as ligase, buffers, and exonucleases. It also offers binding kits, such as modified DNA polymerase used to bind SMRTbell libraries to the polymerase in preparation for sequencing; and sequencing kits comprise reagents required for on-instrument, real-time sequencing, including the phospholinked nucleotides. In addition, it provides revio system + sequel systems which conduct, monitor, and analyze single-molecule biochemical reactions in real time; SBB short-read sequencing; onso instrument conducts, monitors, and analyzes SBB biochemical reactions; and SBB consumable, including flow cells, clustering, and sequencing reagent kits. The company serves academic and governmental research institutions; commercial testing and service laboratories; genome centers; public health labs, hospitals and clinical research institutes, and contract research organizations; pharmaceutical companies; and agricultural companies. It markets its products through a sales force and distribution partners in Asia, Australia, Europe, the Middle East, Africa, and Latin America. It has a development and commercialization agreement with Invitae Corporation; and a collaboration with Radboud University Medical to explore genetic causes of rare and genetic diseases. The company was formerly known as Nanofluidics, Inc. and changed its name to Pacific Biosciences of California, Inc. in 2005. Pacific Biosciences of California, Inc. was incorporated in 2000 and is headquartered in Menlo Park, California.
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