Incyte (NASDAQ:INCY) & Generation Bio (NASDAQ:GBIO) Head-To-Head Comparison

Incyte (NASDAQ:INCY) and Generation Bio (NASDAQ:GBIO) are both medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, profitability, risk, institutional ownership, analyst recommendations and dividends.

Earnings & Valuation

This table compares Incyte and Generation Bio”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Incyte	$4.24 billion	4.00	$32.62 million	$4.40	19.75
Generation Bio	$19.89 million	2.13	-$131.67 million	($10.82)	-0.58

Incyte has higher revenue and earnings than Generation Bio. Generation Bio is trading at a lower price-to-earnings ratio than Incyte, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings for Incyte and Generation Bio, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Incyte	1	10	7	0	2.33
Generation Bio	0	1	2	0	2.67

Incyte currently has a consensus price target of $81.20, indicating a potential downside of 6.58%. Generation Bio has a consensus price target of $37.3333, indicating a potential upside of 493.53%. Given Generation Bio’s stronger consensus rating and higher probable upside, analysts plainly believe Generation Bio is more favorable than Incyte.

Institutional & Insider Ownership

97.0% of Incyte shares are owned by institutional investors. Comparatively, 95.2% of Generation Bio shares are owned by institutional investors. 17.8% of Incyte shares are owned by insiders. Comparatively, 21.8% of Generation Bio shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Incyte has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500. Comparatively, Generation Bio has a beta of 2.67, suggesting that its stock price is 167% more volatile than the S&P 500.

Profitability

This table compares Incyte and Generation Bio’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Incyte	18.99%	21.99%	14.43%
Generation Bio	-341.12%	-91.07%	-33.65%

Summary

Incyte beats Generation Bio on 10 of the 14 factors compared between the two stocks.

About Incyte

Incyte Corporation, a biopharmaceutical company, engages in the discovery, development, and commercialization of therapeutics for hematology/oncology, and inflammation and autoimmunity areas in the United States and internationally. The company offers JAKAFI (ruxolitinib) for treatment of intermediate or high-risk myelofibrosis, polycythemia vera, and steroid-refractory acute graft-versus-host disease; MONJUVI (tafasitamab-cxix)/MINJUVI (tafasitamab) for relapsed or refractory diffuse large B-cell lymphoma; PEMAZYRE (pemigatinib), a fibroblast growth factor receptor kinase inhibitor that act as oncogenic drivers in liquid and solid tumor types; ICLUSIG (ponatinib) to treat chronic myeloid leukemia and Philadelphia-chromosome positive acute lymphoblastic leukemia; and ZYNYZ (retifanlimab-dlwr) to treat adults with metastatic or recurrent locally advanced Merkel cell carcinoma, as well as OPZELURA cream for treatment of atopic dermatitis. Its clinical stage products include retifanlimab under Phase 3 clinical trials for squamous cell carcinoma of the anal canal and non-small cell lung cancer; axatilimab, an anti-CSF-1R monoclonal antibody under Phase 2 that is being developed as a therapy for patients with chronic GVHD; INCA033989 to inhibit oncogenesis; INCB160058, which is being developed as a disease-modifying therapeutic; and INCB99280 and INCB99318 for the treatment solid tumors. The company also develops INCB123667, INCA32459, and INCA33890, as well as Ruxolitinib cream, Povorcitinib, and INCA034460. It has collaboration out-license agreements with Novartis and Lilly; in-license agreements with Agenus, Merus, MacroGenics, and Syndax; and collaboration and license agreement with China Medical System Holdings Limited for the development and commercialization of povorcitinib. The company sells its products to specialty, retail, and hospital pharmacies, distributors, and wholesalers. The company was formerly known as Incyte Genomics Inc and changed its name to Incyte Corporation in March 2003. Incyte Corporation was incorporated in 1991 and is headquartered in Wilmington, Delaware.

About Generation Bio

Generation Bio Co. develops non-viral genetic medicines for the treatment of rare and prevalent diseases. The company develops cell-targeted lipid nanoparticle (ctLNP) platform, a modular delivery system for nucleic acids to avoid off-target clearance by the liver and spleen that enables ctLNPs to persist in systemic circulation, which allows for highly selective and potent ligand-driven targeting to specific tissues and cell types; and novel immune-quiet DNA (iqDNA) to enable long-lasting high levels of gene expression from non-integrating episomes and avoids innate immune sensors that have long prevented DNA from use in non-viral systems. It uses its platform for developing a portfolio of programs for treating cancer, autoimmune, hematologic disorders, prioritizing sickle cell, beta-thalassemia, and hemophilia A diseases, as well as for other tissues and cell types, including retina, skeletal muscle, and central nervous system. The company was formerly known as Torus Therapeutics, Inc. and changed its name to Generation Bio Co. in November 2017. Generation Bio Co. was incorporated in 2016 and is headquartered in Cambridge, Massachusetts.