Head-To-Head Comparison: Myriad Genetics (NASDAQ:MYGN) versus Vertex Pharmaceuticals (NASDAQ:VRTX)

Vertex Pharmaceuticals (NASDAQ:VRTX) and Myriad Genetics (NASDAQ:MYGN) are both healthcare companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, analyst recommendations, valuation, risk and dividends.

Profitability

This table compares Vertex Pharmaceuticals and Myriad Genetics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vertex Pharmaceuticals	35.00%	23.09%	16.72%
Myriad Genetics	-13.96%	-16.09%	-8.10%

Earnings & Valuation

This table compares Vertex Pharmaceuticals and Myriad Genetics”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vertex Pharmaceuticals	$12.00 billion	10.92	$3.95 billion	$17.18	30.05
Myriad Genetics	$824.50 million	0.47	-$365.90 million	($1.19)	-3.37

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

Risk and Volatility

Vertex Pharmaceuticals has a beta of 0.32, suggesting that its stock price is 68% less volatile than the S&P 500. Comparatively, Myriad Genetics has a beta of 1.68, suggesting that its stock price is 68% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Vertex Pharmaceuticals and Myriad Genetics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vertex Pharmaceuticals	0	2	20	1	2.96
Myriad Genetics	3	4	0	0	1.57

Vertex Pharmaceuticals presently has a consensus price target of $573.83, suggesting a potential upside of 11.13%. Myriad Genetics has a consensus price target of $3.12, suggesting a potential downside of 22.19%. Given Vertex Pharmaceuticals’ stronger consensus rating and higher probable upside, research analysts clearly believe Vertex Pharmaceuticals is more favorable than Myriad Genetics.

Institutional & Insider Ownership

91.0% of Vertex Pharmaceuticals shares are held by institutional investors. Comparatively, 99.0% of Myriad Genetics shares are held by institutional investors. 0.2% of Vertex Pharmaceuticals shares are held by insiders. Comparatively, 1.9% of Myriad Genetics shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Vertex Pharmaceuticals beats Myriad Genetics on 12 of the 15 factors compared between the two stocks.

About Vertex Pharmaceuticals

Vertex Pharmaceuticals Incorporated, a biotechnology company, engages in developing and commercializing therapies for treating cystic fibrosis (CF). It markets TRIKAFTA/KAFTRIO for people with CF with at least one F508del mutation for 2 years of age or older; SYMDEKO/SYMKEVI for people with CF for 6 years of age or older; ORKAMBI for CF patients 1 year or older; and KALYDECO for the treatment of patients with 1 year or older who have CF with ivacaftor. The company's pipeline includes VX-522, a CFTR mRNA therapeutic designed to treat the underlying cause of CF, which is in Phase 1 clinical trial; VX-548, a non-opioid medicine for the treatment of acute and neuropathic pain which is in Phase 3 clinical trial; Exa-cel, for the treatment of sickle cell disease and transfusion-dependent beta thalassemia which is in Phase 2/3 clinical trial. In addition, it provides inaxaplin for the treatment of APOL1-mediated focal segmental glomerulosclerosis and co-morbidities, such as hypertension which is in single Phase 2/3; VX- 880 and VX-264, treatment for Type 1 Diabetes which is in Phase 1/2 clinical trial; VX-970, which is in Phase 2 clinical trial for the treatment of cancer; and VX-803 and VX-984 for treatment of cancer in Phase 1 clinical trial. Further, it sells the products to specialty pharmacy and specialty distributors in the United States, as well as retail pharmacies, hospitals, and clinics. Additionally, the company has collaborations with CRISPR Therapeutics AG.; Moderna, Inc.; Entrada Therapeutics, Inc.; Arbor Biotechnologies, Inc.; Mammoth Biosciences, Inc.; and Verve Therapeutics., as well as collaborations with Tevard Biosciences to develop novel tRNA-based therapies for duchenne muscular dystrophy. Vertex Pharmaceuticals Incorporated was founded in 1989 and is headquartered in Boston, Massachusetts.

About Myriad Genetics

Myriad Genetics, Inc., a genetic testing and precision medicine company, develops genetic tests in the United States and internationally. The company offers molecular diagnostic tests for use in oncology, and women's and pharmacogenomics. It also provides MyRisk Hereditary Cancer Test, a DNA sequencing test for assessing the risks for hereditary cancers; BRACAnalysis CDx Germline Companion Diagnostic Test, a DNA sequencing test to help determine the therapy for patients with metastatic breast, ovarian, metastatic pancreatic, and metastatic prostate cancer with deleterious or suspected deleterious germline BRCA variants; and MyChoice CDx Companion Diagnostic Test, a tumor test that determines homologous recombination deficiency status in patients with ovarian cancer. The company also offers Prolaris Prostate Cancer Prognostic Test, an RNA expression tumor analysis for assessing the aggressiveness of prostate cancer; EndoPredict Breast Cancer Prognostic Test, an RNA expression test for assessing the aggressiveness of breast cancer; Precise Tumor, a solution for precision oncology; and Prequel Prenatal Screen, a non-invasive prenatal screening test conducted using maternal blood to screen for severe chromosomal disorders in a fetus. It provides Foresight Carrier Screen, a prenatal test for future parents to assess their risk of passing on a recessive genetic condition to their offspring; SneakPeek, a non-invasive blood test that predicts the gender of a fetus; and GeneSight Psychotropic Mental Health Medication Test, a DNA genotyping test to aid psychotropic drug selection for patients suffering from depression, anxiety, attention-deficit, hyperactivity disorder, and other mental health conditions. It has a strategic collaboration with Illumina, Inc., Memorial Sloan Kettering Cancer Center, the University of Texas MD Anderson Cancer Center, SimonMed, and Onsite Women's Health. Myriad Genetics, Inc. was incorporated in 1992 and is headquartered in Salt Lake City, Utah.