Comparing Neurocrine Biosciences (NASDAQ:NBIX) and Corcept Therapeutics (NASDAQ:CORT)

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

Institutional and Insider Ownership

92.6% of Neurocrine Biosciences shares are owned by institutional investors. Comparatively, 93.6% of Corcept Therapeutics shares are owned by institutional investors. 4.6% of Neurocrine Biosciences shares are owned by insiders. Comparatively, 20.7% of Corcept Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Neurocrine Biosciences and Corcept Therapeutics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Neurocrine Biosciences	0	4	19	1	2.88
Corcept Therapeutics	1	2	5	0	2.50

Neurocrine Biosciences currently has a consensus price target of $202.32, suggesting a potential upside of 19.97%. Corcept Therapeutics has a consensus price target of $139.50, suggesting a potential upside of 92.58%. Given Corcept Therapeutics’ higher probable upside, analysts clearly believe Corcept Therapeutics is more favorable than Neurocrine Biosciences.

Earnings & Valuation

This table compares Neurocrine Biosciences and Corcept Therapeutics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Neurocrine Biosciences	$2.86 billion	5.97	$478.60 million	$6.74	25.02
Corcept Therapeutics	$761.41 million	10.41	$99.65 million	$1.27	57.04

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

Volatility and Risk

Neurocrine Biosciences has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500. Comparatively, Corcept Therapeutics has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Neurocrine Biosciences	18.98%	23.39%	16.22%
Corcept Therapeutics	16.53%	22.56%	17.83%

Summary

Neurocrine Biosciences beats Corcept Therapeutics on 8 of the 15 factors compared between the two stocks.

About Neurocrine Biosciences

Neurocrine Biosciences is a biopharmaceutical company focused on developing and commercializing treatments for neurological, endocrine and related disorders. Founded in 1992 and headquartered in San Diego, California, the company conducts research and development alongside its commercial operations. Its marketed medicines include INGREZZA (valbenazine), approved in the United States for tardive dyskinesia and chorea associated with Huntington disease, and CRENESSITY (crinecerfont), used with glucocorticoid replacement therapy to treat classic congenital adrenal hyperplasia in adults and children.

About Corcept Therapeutics

Corcept Therapeutics is a biopharmaceutical company focused on developing medicines that modulate the effects of cortisol, a hormone involved in the body’s response to stress and in several disease processes. Founded in 1998, the company conducts research and develops treatments for conditions in which cortisol may play a role. Its marketed product, Korlym (mifepristone), is approved in the United States to control high blood sugar in adults with endogenous Cushing’s syndrome who have type 2 diabetes or glucose intolerance and are not candidates for surgery or have not benefited from it.