Head-To-Head Comparison: Pacific Biosciences of California (NASDAQ:PACB) and 10x Genomics (NASDAQ:TXG)

Pacific Biosciences of California (NASDAQ:PACB) and 10x Genomics (NASDAQ:TXG) are both healthcare companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, dividends, analyst recommendations, profitability, valuation and risk.

Valuation and Earnings

This table compares Pacific Biosciences of California and 10x Genomics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pacific Biosciences of California	$160.01 million	4.08	-$546.38 million	($0.42)	-4.96
10x Genomics	$642.82 million	12.60	-$43.54 million	($0.52)	-119.51

10x Genomics has higher revenue and earnings than Pacific Biosciences of California. 10x Genomics 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.

Profitability

This table compares Pacific Biosciences of California and 10x Genomics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pacific Biosciences of California	-81.31%	-5,752.12%	-19.19%
10x Genomics	-10.84%	-8.26%	-6.52%

Risk and Volatility

Pacific Biosciences of California has a beta of 2.21, suggesting that its stock price is 121% more volatile than the S&P 500. Comparatively, 10x Genomics has a beta of 2.03, suggesting that its stock price is 103% more volatile than the S&P 500.

Institutional & Insider Ownership

84.7% of 10x Genomics shares are owned by institutional investors. 3.7% of Pacific Biosciences of California shares are owned by insiders. Comparatively, 8.8% of 10x Genomics 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.

Analyst Ratings

This is a summary of recent recommendations and price targets for Pacific Biosciences of California and 10x Genomics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pacific Biosciences of California	2	3	0	0	1.60
10x Genomics	1	12	5	0	2.22

Pacific Biosciences of California presently has a consensus price target of $2.57, suggesting a potential upside of 23.10%. 10x Genomics has a consensus price target of $68.40, suggesting a potential upside of 10.06%. Given Pacific Biosciences of California’s higher possible upside, equities research analysts clearly believe Pacific Biosciences of California is more favorable than 10x Genomics.

Summary

10x Genomics beats Pacific Biosciences of California on 10 of the 14 factors compared between the two stocks.

About Pacific Biosciences of California

Pacific Biosciences of California, or PacBio, develops and sells DNA sequencing systems and related products for life science research and clinical applications. The company is known for its single-molecule real-time (SMRT) sequencing technology, which produces long reads that can help researchers study complex regions of the genome and identify genetic variations. Its portfolio includes HiFi sequencing systems such as the Revio and Vega platforms, along with instruments, consumables, software and services used to prepare, sequence and analyze genetic samples.

About 10x Genomics

10x Genomics, Inc. develops technology for studying biological systems at single-cell and spatial resolution. Its instruments, consumables and software help researchers analyze gene expression and other features of cells while preserving information about their location within tissue. The company’s product platforms include Chromium for single-cell analysis, Visium for spatial gene-expression analysis and Xenium for in situ analysis of gene activity within tissue samples. Its tools are used in areas such as immunology, neuroscience, cancer research and drug discovery.