Analyzing Neurocrine Biosciences (NASDAQ:NBIX) and Lyell Immunopharma (NASDAQ:LYEL)

Lyell Immunopharma (NASDAQ:LYEL) and Neurocrine Biosciences (NASDAQ:NBIX) are both medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, valuation, analyst recommendations, institutional ownership, profitability and dividends.

Volatility and Risk

Lyell Immunopharma has a beta of -0.06, suggesting that its share price is 106% less volatile than the S&P 500. Comparatively, Neurocrine Biosciences has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500.

Profitability

This table compares Lyell Immunopharma and Neurocrine Biosciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lyell Immunopharma	-794,858.12%	-85.71%	-66.41%
Neurocrine Biosciences	21.55%	19.79%	13.82%

Institutional & Insider Ownership

66.0% of Lyell Immunopharma shares are owned by institutional investors. Comparatively, 92.6% of Neurocrine Biosciences shares are owned by institutional investors. 6.2% of Lyell Immunopharma shares are owned by insiders. Comparatively, 4.6% of Neurocrine Biosciences shares are owned 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.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lyell Immunopharma	$40,000.00	7,827.75	-$274.45 million	($13.80)	-0.93
Neurocrine Biosciences	$2.86 billion	6.12	$478.60 million	$6.49	26.83

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

Analyst Ratings

This is a summary of current recommendations and price targets for Lyell Immunopharma and Neurocrine Biosciences, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lyell Immunopharma	1	1	5	1	2.75
Neurocrine Biosciences	0	3	18	2	2.96

Lyell Immunopharma presently has a consensus target price of $43.20, indicating a potential upside of 238.03%. Neurocrine Biosciences has a consensus target price of $194.05, indicating a potential upside of 11.43%. Given Lyell Immunopharma’s higher probable upside, equities analysts clearly believe Lyell Immunopharma is more favorable than Neurocrine Biosciences.

Summary

Neurocrine Biosciences beats Lyell Immunopharma on 12 of the 15 factors compared between the two stocks.

About Lyell Immunopharma

Lyell Immunopharma, Inc., a clinical-stage cell therapy company, develops T cell reprogramming technologies for patients with solid tumors. The company develops therapies using an ex vivo genetic reprogramming technologies, such as c Jun overexpression and NR4A3 gene knockout, to endow resistance to T cell exhaustion; and an ex vivo epigenetic reprogramming technologies, including Epi R to generate population of T cells with durable stemness, and Stim R, a proprietary synthetic cell mimetic. It is also developing LYL797, a genetically and epigenetically reprogrammed ROR1 chimeric antigen receptor (CAR) T cell product candidate that is in Phase 1 clinical trial for the treatment of various solid tumors; and LYL845, a novel epigenetically reprogrammed tumor-infiltrating lymphocytes product candidate, which is in Phase 1 clinical trial targeting multiple solid tumor indications. In addition, the company's preclinical product candidates include LYL119, a ROR1 CAR T-cell product for the treatment of enhanced cytotoxicity; and second generation TIL product. Lyell Immunopharma, Inc. was incorporated in 2018 and is headquartered in South San Francisco, California.

About Neurocrine Biosciences

Neurocrine Biosciences, Inc. discovers, develops, and markets pharmaceuticals for neurological, neuroendocrine, and neuropsychiatric disorders in the United States and internationally. The company’s products include INGREZZA for tardive dyskinesia and chorea associated with Huntington’s disease; ALKINDI for adrenal insufficiency; Efmody capsules for classic congenital adrenal hyperplasia; Orilissa tablets for endometriosis; and Oriahnn capsules to treat uterine fibroids. Its product candidates in clinical development include valbenazine to treat dyskinetic cerebral palsy in pediatrics and adults; NBI-921352 to treat developmental and epileptic encephalopathy syndrome in pediatrics and adults; NBI-827104 to treat epileptic encephalopathy with continuous spike-and-wave during sleep; NBI-1076986 to treat movement disorders; crinecerfront to treat congenital adrenal hyperplasia in adults and children; EFMODY to treat congenital adrenal hyperplasia and adrenal insufficiency in adults; valbenazine for the adjunctive treatment of schizophrenia; NBI-1065845 for the treatment of inadequate response to treatment in major depressive disorder; luvadaxistat to treat cognitive impairment related to schizophrenia; NBI-1117568 for the treatment of schizophrenia; NBI-1070770 to treat major depressive disorder; NBI-1117570 for the treatment of symptoms of psychosis and cognition in neurological and neuropsychiatric conditions; and NBI-1117569, NBI-1117567, and NBI-1065890 to treat CNS indications. The company also has license and collaboration agreements with Heptares Therapeutics Limited; Takeda Pharmaceutical Company Limited; Idorsia Pharmaceuticals Ltd; Xenon Pharmaceuticals Inc.; Voyager Therapeutics, Inc.; BIAL Portela & Ca, S.A.; Mitsubishi Tanabe Pharma Corporation; and AbbVie Inc. The company was incorporated in 1992 and is headquartered in San Diego, California.