Critical Review: Exelixis (NASDAQ:EXEL) & SAB Biotherapeutics (NASDAQ:SABS)

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

Valuation and Earnings

This table compares SAB Biotherapeutics and Exelixis”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SAB Biotherapeutics	$1.32 million	230.92	$13.27 million	($1.30)	-2.58
Exelixis	$2.32 billion	7.41	$782.57 million	$3.18	21.82

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

Volatility and Risk

SAB Biotherapeutics has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500. Comparatively, Exelixis has a beta of 0.47, meaning that its stock price is 53% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for SAB Biotherapeutics and Exelixis, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SAB Biotherapeutics	1	1	9	0	2.73
Exelixis	1	12	6	1	2.35

SAB Biotherapeutics currently has a consensus price target of $12.00, suggesting a potential upside of 258.21%. Exelixis has a consensus price target of $55.21, suggesting a potential downside of 20.43%. Given SAB Biotherapeutics’ stronger consensus rating and higher probable upside, analysts clearly believe SAB Biotherapeutics is more favorable than Exelixis.

Insider and Institutional Ownership

7.8% of SAB Biotherapeutics shares are owned by institutional investors. Comparatively, 85.3% of Exelixis shares are owned by institutional investors. 7.4% of SAB Biotherapeutics shares are owned by insiders. Comparatively, 2.6% of Exelixis shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares SAB Biotherapeutics and Exelixis’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SAB Biotherapeutics	N/A	-6.74%	-6.06%
Exelixis	35.33%	42.17%	31.76%

Summary

Exelixis beats SAB Biotherapeutics on 9 of the 15 factors compared between the two stocks.

About SAB Biotherapeutics

SAB Biotherapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on the development of human polyclonal immunotherapeutic antibodies to address immune system disorders and infectious diseases. It has applied advanced genetic engineering and antibody science to develop transchromosomic bovine herds that produce fully human antibodies targeted at infectious diseases and immune and autoimmune disorders, including infectious diseases, influenza, CDI, type 1 diabetes, organ transplantation, and oncology, as well as immunology, gastroenterology, and respiratory diseases. The company also uses its DiversitAb immunotherapy platform to produce fully-human polyclonal antibodies without the need for human donors or plasma. In addition, its lead product candidate SAB-142, a human, multi-target anti-thymocyte globulin treatment, currently under Phase 1 trials in delaying the onset or progression of type 1 diabetes. Further, the company develops SAB-176, a multivalent, broadly neutralizing – human polyclonal immunoglobulin therapeutic candidate, currently in Phase 2a development for the treatment or prevention of severe influenza. SAB Biotherapeutics, Inc. was founded in 2014 and is headquartered in Miami Beach, Florida.

About Exelixis

Exelixis, Inc., an oncology company, focuses on the discovery, development, and commercialization of new medicines for difficult-to-treat cancers in the United States. The company offers CABOMETYX tablets for the treatment of patients with advanced renal cell carcinoma who received prior anti-angiogenic therapy; and COMETRIQ capsules for the treatment of progressive and metastatic medullary thyroid cancer. Its CABOMETYX and COMETRIQ are derived from cabozantinib, an inhibitor of multiple tyrosine kinases, including MET, AXL, RET, and VEGF receptors. The company also offers COTELLIC, an inhibitor of MEK as a combination regimen to treat specific forms of advanced melanoma; and MINNEBRO, an oral non-steroidal selective blocker of the mineralocorticoid receptor for the treatment of hypertension in Japan. It develops zanzalintinib, a novel, potent, next-generation oral tyrosine kinase inhibitor (TKI) that targets VEGF receptors, MET and the TAM kinases (TYRO3, AXL and MER); and XB002, a next-generation tissue factor (TF)-targeting ADC, administered via intravenous infusion and composed of a human monoclonal antibody (mAb) against TF that is conjugated to an auristatin-based microtubulin inhibitor (MTI) payload. It has research collaborations and license agreements with Ipsen Pharma SAS; Takeda Pharmaceutical Company Ltd.; F. Hoffmann-La Roche Ltd.; Redwood Bioscience, Inc.; R.P. Scherer Technologies, LLC; Catalent Pharma Solutions, Inc.; NBE Therapeutics AG; Aurigene Discovery Technologies Limited; Iconic Therapeutics, Inc.; Invenra, Inc.; StemSynergy Therapeutics, Inc.; Genentech, Inc.; Bristol-Myers Squibb Company; and Daiichi Sankyo Company, Limited, as well as clinical development agreement with Sairopa B.V. for ADU-1805. The company was formerly known as Exelixis Pharmaceuticals, Inc. and changed its name to Exelixis, Inc. in February 2000. Exelixis, Inc. was incorporated in 1994 and is headquartered in Alameda, California.