Head-To-Head Analysis: Agios Pharmaceuticals (NASDAQ:AGIO) and Incyte (NASDAQ:INCY)

Incyte (NASDAQ:INCY) and Agios Pharmaceuticals (NASDAQ:AGIO) are both healthcare companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, profitability and valuation.

Profitability

This table compares Incyte and Agios Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Incyte	27.71%	29.93%	22.88%
Agios Pharmaceuticals	-418.24%	-35.67%	-33.06%

Insider and Institutional Ownership

97.0% of Incyte shares are held by institutional investors. 16.2% of Incyte shares are held by insiders. Comparatively, 5.4% of Agios Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Incyte and Agios Pharmaceuticals”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Incyte	$5.14 billion	4.47	$1.29 billion	$7.85	14.45
Agios Pharmaceuticals	$54.03 million	35.13	-$412.78 million	($7.01)	-4.53

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

Risk & Volatility

Incyte has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500. Comparatively, Agios Pharmaceuticals has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Incyte and Agios Pharmaceuticals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Incyte	0	13	11	1	2.52
Agios Pharmaceuticals	1	4	5	1	2.55

Incyte presently has a consensus target price of $127.45, suggesting a potential upside of 12.35%. Agios Pharmaceuticals has a consensus target price of $41.50, suggesting a potential upside of 30.54%. Given Agios Pharmaceuticals’ stronger consensus rating and higher possible upside, analysts plainly believe Agios Pharmaceuticals is more favorable than Incyte.

Summary

Incyte beats Agios Pharmaceuticals on 11 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 Agios Pharmaceuticals

Agios Pharmaceuticals, Inc., a biopharmaceutical company, discovers and develops medicines in the field of cellular metabolism in the United States. Its lead product includes PYRUKYND (mitapivat), an activator of wild-type and mutant pyruvate kinase (PK), enzymes for the treatment of hemolytic anemias. The company develops AG-946, a PK activator for treating lower-risk myelodysplastic syndrome and hemolytic anemias; and AG-181, a phenylalanine hydroxylase stabilizer for the treatment of phenylketonuria. Its preclinical product is siRNA for the treatment of polycythemia vera, a rare blood disorder. Agios Pharmaceuticals, Inc. was incorporated in 2007 and is headquartered in Cambridge, Massachusetts.