Financial Analysis: Exelixis (NASDAQ:EXEL) vs. ProQR Therapeutics (NASDAQ:PRQR)

Exelixis (NASDAQ:EXEL) and ProQR Therapeutics (NASDAQ:PRQR) are both healthcare companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, institutional ownership, earnings, profitability and risk.

Risk & Volatility

Exelixis has a beta of 0.45, indicating that its stock price is 55% less volatile than the S&P 500. Comparatively, ProQR Therapeutics has a beta of 0.29, indicating that its stock price is 71% less volatile than the S&P 500.

Earnings & Valuation

This table compares Exelixis and ProQR Therapeutics”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Exelixis	$2.32 billion	7.42	$782.57 million	$3.34	21.13
ProQR Therapeutics	$17.99 million	7.67	-$47.73 million	($0.46)	-2.85

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

Profitability

This table compares Exelixis and ProQR Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Exelixis	35.45%	45.54%	33.90%
ProQR Therapeutics	-223.51%	-73.83%	-35.14%

Insider and Institutional Ownership

85.3% of Exelixis shares are owned by institutional investors. Comparatively, 32.7% of ProQR Therapeutics shares are owned by institutional investors. 2.6% of Exelixis shares are owned by company insiders. Comparatively, 8.4% of ProQR Therapeutics shares are owned 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.

Analyst Ratings

This is a breakdown of current ratings and price targets for Exelixis and ProQR Therapeutics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Exelixis	1	10	6	1	2.39
ProQR Therapeutics	1	1	6	0	2.62

Exelixis presently has a consensus price target of $58.85, suggesting a potential downside of 16.62%. ProQR Therapeutics has a consensus price target of $7.60, suggesting a potential upside of 480.15%. Given ProQR Therapeutics’ stronger consensus rating and higher possible upside, analysts clearly believe ProQR Therapeutics is more favorable than Exelixis.

Summary

Exelixis beats ProQR Therapeutics on 10 of the 14 factors compared between the two stocks.

About Exelixis

Exelixis, Inc. is a biotechnology company focused on discovering, developing and commercializing medicines for cancer. Founded in 1994 and headquartered in Alameda, California, the company has built its business around oncology treatments and continues to advance a pipeline of potential cancer therapies. Its principal marketed medicine is cabozantinib, sold in the United States as Cabometyx and Cometriq. Cabometyx is used to treat certain patients with advanced kidney, liver and thyroid cancers, while Cometriq is used for medullary thyroid cancer.

About ProQR Therapeutics

ProQR Therapeutics N.V. is a biotechnology company focused on developing RNA therapies for genetic diseases. The company uses its Axiomer RNA-editing platform to investigate treatments designed to correct disease-causing genetic changes at the RNA level without permanently altering DNA. ProQR’s research has included therapies for rare inherited disorders, particularly genetic diseases affecting the eye and nervous system. Its development programs have included investigational treatments for inherited retinal diseases, while the company has also pursued partnerships and licensing opportunities to advance RNA-editing applications across additional disease areas.