Contrasting SiBone (NASDAQ:SIBN) & Pacific Biosciences of California (NASDAQ:PACB)

Pacific Biosciences of California (NASDAQ:PACB) and SiBone (NASDAQ:SIBN) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, valuation, institutional ownership and risk.

Volatility and Risk

Pacific Biosciences of California has a beta of 2.4, indicating that its stock price is 140% more volatile than the S&P 500. Comparatively, SiBone has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500.

Valuation & Earnings

This table compares Pacific Biosciences of California and SiBone”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pacific Biosciences of California	$160.01 million	2.17	-$546.38 million	($0.43)	-2.60
SiBone	$200.93 million	3.13	-$18.90 million	($0.39)	-36.31

SiBone has higher revenue and earnings than Pacific Biosciences of California. SiBone 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 SiBone’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pacific Biosciences of California	-80.35%	-571.06%	-18.82%
SiBone	-8.10%	-9.56%	-7.06%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Pacific Biosciences of California and SiBone, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pacific Biosciences of California	2	2	1	0	1.80
SiBone	1	0	6	0	2.71

Pacific Biosciences of California presently has a consensus price target of $1.83, suggesting a potential upside of 63.69%. SiBone has a consensus price target of $23.00, suggesting a potential upside of 62.43%. Given Pacific Biosciences of California’s higher probable upside, research analysts plainly believe Pacific Biosciences of California is more favorable than SiBone.

Institutional & Insider Ownership

98.1% of SiBone shares are held by institutional investors. 2.5% of Pacific Biosciences of California shares are held by company insiders. Comparatively, 4.0% of SiBone shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

SiBone beats Pacific Biosciences of California on 11 of the 14 factors compared between the two stocks.

About Pacific Biosciences of California

Pacific Biosciences of California, Inc. designs, develops, and manufactures sequencing solution to resolve genetically complex problems. The company provides sequencing systems; consumable products, including single molecule real-time (SMRT) technology; long-red sequencing; and various reagent kits designed for specific workflow, such as preparation kit to convert DNA into SMRTbell double-stranded DNA library formats, including molecular biology reagents, such as ligase, buffers, and exonucleases. It also offers binding kits, such as modified DNA polymerase used to bind SMRTbell libraries to the polymerase in preparation for sequencing; and sequencing kits comprise reagents required for on-instrument, real-time sequencing, including the phospholinked nucleotides. In addition, it provides revio system + sequel systems which conduct, monitor, and analyze single-molecule biochemical reactions in real time; SBB short-read sequencing; onso instrument conducts, monitors, and analyzes SBB biochemical reactions; and SBB consumable, including flow cells, clustering, and sequencing reagent kits. The company serves academic and governmental research institutions; commercial testing and service laboratories; genome centers; public health labs, hospitals and clinical research institutes, and contract research organizations; pharmaceutical companies; and agricultural companies. It markets its products through a sales force and distribution partners in Asia, Australia, Europe, the Middle East, Africa, and Latin America. It has a development and commercialization agreement with Invitae Corporation; and a collaboration with Radboud University Medical to explore genetic causes of rare and genetic diseases. The company was formerly known as Nanofluidics, Inc. and changed its name to Pacific Biosciences of California, Inc. in 2005. Pacific Biosciences of California, Inc. was incorporated in 2000 and is headquartered in Menlo Park, California.

About SiBone

SI-BONE, Inc., a medical device company, that operate to solve musculoskeletal disorders of the sacropelvic anatomy in the United States and internationally. It offers proprietary minimally invasive surgical implant system to address sacroiliac joint dysfunction and fusion, adult deformity and degeneration, and pelvic trauma; and implantable bone products. The company also provides iFuse-3D, a titanium implant that combines the triangular cross-section of the iFuse implant with the proprietary 3D-printed porous surface and fenestrated design; iFuse-TORQ, a set of 3D-printed threaded implants designed to treat pelvic trauma; and iFuse Bedrock Granite implant provides sacroiliac fusion and sacropelvic fixation as a foundational element for segmental spinal fusion. It markets its products primarily with a direct sales force, as well as through agents and resellers. SI-BONE, Inc. was incorporated in 2008 and is headquartered in Santa Clara, California.