Adaptive Biotechnologies (NASDAQ:ADPT – Get Free Report) and Illumina (NASDAQ:ILMN – Get Free Report) are both healthcare companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.
Institutional and Insider Ownership
99.2% of Adaptive Biotechnologies shares are held by institutional investors. Comparatively, 89.4% of Illumina shares are held by institutional investors. 5.7% of Adaptive Biotechnologies shares are held by company insiders. Comparatively, 2.9% of Illumina 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.
Analyst Recommendations
This is a summary of current ratings for Adaptive Biotechnologies and Illumina, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Adaptive Biotechnologies | 1 | 1 | 6 | 0 | 2.62 |
| Illumina | 3 | 7 | 9 | 0 | 2.32 |
Adaptive Biotechnologies currently has a consensus target price of $30.06, suggesting a potential upside of 12.85%. Illumina has a consensus target price of $238.53, suggesting a potential upside of 1.08%. Given Adaptive Biotechnologies’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Adaptive Biotechnologies is more favorable than Illumina.
Earnings and Valuation
This table compares Adaptive Biotechnologies and Illumina”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Adaptive Biotechnologies | $276.98 million | 15.35 | -$59.50 million | ($0.41) | -64.98 |
| Illumina | $4.34 billion | 8.21 | $850.00 million | $5.81 | 40.62 |
Illumina has higher revenue and earnings than Adaptive Biotechnologies. Adaptive Biotechnologies is trading at a lower price-to-earnings ratio than Illumina, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Adaptive Biotechnologies and Illumina’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Adaptive Biotechnologies | -20.73% | -36.81% | -13.77% |
| Illumina | 19.72% | 29.41% | 12.20% |
Risk & Volatility
Adaptive Biotechnologies has a beta of 2.09, suggesting that its stock price is 109% more volatile than the S&P 500. Comparatively, Illumina has a beta of 1.41, suggesting that its stock price is 41% more volatile than the S&P 500.
Summary
Illumina beats Adaptive Biotechnologies on 7 of the 13 factors compared between the two stocks.
About Adaptive Biotechnologies
Adaptive Biotechnologies Corporation, a commercial-stage company, develops an immune medicine platform for the diagnosis and treatment of various diseases. The company offers immunosequencing platform which combines a suite of proprietary chemistry, computational biology, and machine learning to generate clinical immunomics data to decode the adaptive immune system. It also provides clonoSEQ diagnostic test which detects and monitors the remaining number of cancer cells that are present in a patient’s body during and after treatment, known as Minimal Residual Disease (MRD). The company offers products and services for life sciences research, clinical diagnostics, and drug discovery applications. Adaptive Biotechnologies Corporation has strategic collaborations with Genentech, Inc. for the development, manufacture, and commercialization of neoantigen directed T cell therapies for the treatment of a range of cancers; and Microsoft Corporation to develop diagnostic tests for the early detection of various diseases from a single blood test. The company was formerly known as Adaptive TCR Corporation and changed its name to Adaptive Biotechnologies Corporation in December 2011. Adaptive Biotechnologies Corporation was incorporated in 2009 and is headquartered in Seattle, Washington.
About Illumina
Illumina, Inc. offers sequencing- and array-based solutions for genetic and genomic analysis in the United States, Singapore, the United Kingdom, and internationally. It operates through Core Illumina and GRAIL segments. The company offers sequencing and array-based instruments and consumables, which include reagents, flow cells, and library preparation; whole-genome sequencing kits, which sequence entire genomes of various size and complexity; and targeted resequencing kits, which sequence exomes, specific genes, and RNA or other genomic regions of interest. It also provides whole-genome sequencing, genotyping, noninvasive prenatal testing, and product support services; and Galleri, a multi-cancer early detection test. In addition, the company is developing solutions to help accelerate cancer diagnoses, blood-based detection for minimal residual disease, and other post-diagnostic applications. The company serves genomic research centers, academic institutions, government laboratories, and hospitals, as well as pharmaceutical, biotechnology, commercial molecular diagnostic laboratories, and consumer genomics companies. It markets and distributes its products directly to customers, as well as through life-science distributors. Illumina, Inc. was incorporated in 1998 and is based in San Diego, California.
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