Analyzing Neurocrine Biosciences (NASDAQ:NBIX) and Compass Therapeutics (NASDAQ:CMPX)

Neurocrine Biosciences (NASDAQ:NBIX) and Compass Therapeutics (NASDAQ:CMPX) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, risk, dividends, earnings, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of current recommendations for Neurocrine Biosciences and Compass Therapeutics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Neurocrine Biosciences	0	5	18	1	2.83
Compass Therapeutics	0	0	3	0	3.00

Neurocrine Biosciences presently has a consensus target price of $162.20, indicating a potential upside of 40.97%. Compass Therapeutics has a consensus target price of $7.67, indicating a potential upside of 307.80%. Given Compass Therapeutics’ stronger consensus rating and higher possible upside, analysts clearly believe Compass Therapeutics is more favorable than Neurocrine Biosciences.

Insider and Institutional Ownership

92.6% of Neurocrine Biosciences shares are owned by institutional investors. Comparatively, 68.4% of Compass Therapeutics shares are owned by institutional investors. 4.3% of Neurocrine Biosciences shares are owned by company insiders. Comparatively, 30.0% of Compass Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Neurocrine Biosciences has a beta of 0.37, indicating that its stock price is 63% less volatile than the S&P 500. Comparatively, Compass Therapeutics has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500.

Valuation & Earnings

This table compares Neurocrine Biosciences and Compass Therapeutics”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Neurocrine Biosciences	$2.12 billion	5.46	$249.70 million	$3.63	31.70
Compass Therapeutics	$850,000.00	304.31	-$42.49 million	($0.36)	-5.22

Neurocrine Biosciences has higher revenue and earnings than Compass Therapeutics. Compass Therapeutics is trading at a lower price-to-earnings ratio than Neurocrine Biosciences, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Neurocrine Biosciences and Compass Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Neurocrine Biosciences	16.00%	14.86%	10.54%
Compass Therapeutics	N/A	-30.89%	-29.36%

Summary

Neurocrine Biosciences beats Compass Therapeutics on 10 of the 15 factors compared between the two stocks.

About Neurocrine Biosciences

Neurocrine Biosciences, Inc. discovers, develops, and markets pharmaceuticals for neurological, neuroendocrine, and neuropsychiatric disorders in the United States and internationally. The company's products include INGREZZA for tardive dyskinesia and chorea associated with Huntington's disease; ALKINDI for adrenal insufficiency; Efmody capsules for classic congenital adrenal hyperplasia; Orilissa tablets for endometriosis; and Oriahnn capsules to treat uterine fibroids. Its product candidates in clinical development include valbenazine to treat dyskinetic cerebral palsy in pediatrics and adults; NBI-921352 to treat developmental and epileptic encephalopathy syndrome in pediatrics and adults; NBI-827104 to treat epileptic encephalopathy with continuous spike-and-wave during sleep; NBI-1076986 to treat movement disorders; crinecerfront to treat congenital adrenal hyperplasia in adults and children; EFMODY to treat congenital adrenal hyperplasia and adrenal insufficiency in adults; valbenazine for the adjunctive treatment of schizophrenia; NBI-1065845 for the treatment of inadequate response to treatment in major depressive disorder; luvadaxistat to treat cognitive impairment related to schizophrenia; NBI-1117568 for the treatment of schizophrenia; NBI-1070770 to treat major depressive disorder; NBI-1117570 for the treatment of symptoms of psychosis and cognition in neurological and neuropsychiatric conditions; and NBI-1117569, NBI-1117567, and NBI-1065890 to treat CNS indications. The company also has license and collaboration agreements with Heptares Therapeutics Limited; Takeda Pharmaceutical Company Limited; Idorsia Pharmaceuticals Ltd; Xenon Pharmaceuticals Inc.; Voyager Therapeutics, Inc.; BIAL Portela & Ca, S.A.; Mitsubishi Tanabe Pharma Corporation; and AbbVie Inc. The company was incorporated in 1992 and is headquartered in San Diego, California.

About Compass Therapeutics

Compass Therapeutics, Inc., a clinical-stage oncology-focused biopharmaceutical company, engages in developing antibody-based therapeutics to treat various human diseases in the United States. The company's lead product candidates include CTX-009, a bispecific antibody that blocks Delta-like ligand 4 a ligand of Notch-1, and vascular endothelial growth factor A signaling pathways, which are critical to angiogenesis and tumor vascularization; and CTX-471, an IgG4 monoclonal antibody that is an agonist of CD137, a key co-stimulatory receptor on immune cells. It also develops CTX-8371, a bispecific inhibitor that targets PD-1 and PD-L1 checkpoint inhibitor antibodies. The company was founded in 2014 and is headquartered in Boston, Massachusetts.