Comparing Bio-Techne (NASDAQ:TECH) and XOMA Royalty (NASDAQ:XOMA)

XOMA Royalty (NASDAQ:XOMA) and Bio-Techne (NASDAQ:TECH) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, earnings, profitability, analyst recommendations, risk and valuation.

Risk & Volatility

XOMA Royalty has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500. Comparatively, Bio-Techne has a beta of 1.46, meaning that its share price is 46% more volatile than the S&P 500.

Insider and Institutional Ownership

95.9% of XOMA Royalty shares are held by institutional investors. Comparatively, 99.0% of Bio-Techne shares are held by institutional investors. 7.2% of XOMA Royalty shares are held by company insiders. Comparatively, 1.3% of Bio-Techne shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares XOMA Royalty and Bio-Techne”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
XOMA Royalty	$28.49 million	11.32	-$13.82 million	$0.74	35.22
Bio-Techne	$1.22 billion	7.57	$73.40 million	$0.49	120.86

Bio-Techne has higher revenue and earnings than XOMA Royalty. XOMA Royalty is trading at a lower price-to-earnings ratio than Bio-Techne, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for XOMA Royalty and Bio-Techne, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
XOMA Royalty	1	1	3	0	2.40
Bio-Techne	2	4	11	1	2.61

XOMA Royalty presently has a consensus price target of $60.60, suggesting a potential upside of 132.54%. Bio-Techne has a consensus price target of $71.00, suggesting a potential upside of 19.89%. Given XOMA Royalty’s higher possible upside, analysts clearly believe XOMA Royalty is more favorable than Bio-Techne.

Profitability

This table compares XOMA Royalty and Bio-Techne’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
XOMA Royalty	32.28%	2.91%	1.03%
Bio-Techne	6.41%	13.59%	10.43%

Summary

Bio-Techne beats XOMA Royalty on 10 of the 15 factors compared between the two stocks.

About XOMA Royalty

XOMA Corporation operates as a biotech royalty aggregator in the United States and the Asia Pacific. It has a portfolio of economic rights to future potential milestone and royalty payments associated with partnered commercial and pre-commercial therapeutic candidates. The company also focuses on early to mid-stage clinical assets primarily in Phase 1 and 2 with commercial sales potential that are licensed to partners; and acquires milestone and royalty revenue streams on late-stage clinical or commercial assets. It has a portfolio with various assets. XOMA Corporation was incorporated in 1981 and is headquartered in Emeryville, California.

About Bio-Techne

Bio-Techne Corporation, together with its subsidiaries, develops, manufactures, and sells life science reagents, instruments, and services for the research and clinical diagnostic markets in the United States, the United Kingdom, rest of Europe, Middle East, and Africa, Greater China, rest of Asia-Pacific, and internationally. The company operates through two segments, Protein Sciences, and Diagnostics and Genomics. The Protein Sciences segment develops and manufactures biological reagents used in various aspects of life science research, diagnostics, and cell and gene therapy, such as cytokines and growth factors, antibodies, small molecules, tissue culture sera, and cell selection technologies. This segment also offers proteomic analytical tools for automated western blot and multiplexed ELISA workflow consists of manual and automated protein analysis instruments and immunoassays for use in quantifying proteins in various biological fluids. The Diagnostics and Genomics segment develops and manufactures diagnostic products, including controls, calibrators, and diagnostic assays for regulated diagnostics market, exosome-based molecular diagnostic assays, advanced tissue-based in-situ hybridization assays for spatial genomic and tissue biopsy analysis, and genetic and oncology kits for research and clinical applications; and sells products for genetic carrier screening, oncology diagnostics, molecular controls, and research, as well as instruments and process control products for hematology, blood chemistry and gases, and coagulation controls and reagents used in various diagnostic applications. The company was formerly known as Techne Corporation and changed its name to Bio-Techne Corporation in November 2014. Bio-Techne Corporation was incorporated in 1976 and is headquartered in Minneapolis, Minnesota.