Critical Analysis: 10x Genomics (NASDAQ:TXG) vs. Pacific Biosciences of California (NASDAQ:PACB)

Pacific Biosciences of California (NASDAQ:PACB – Get Free Report) and 10x Genomics (NASDAQ:TXG – Get Free Report) are both healthcare companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, profitability, risk, earnings, institutional ownership, analyst recommendations and dividends.

Insider & Institutional Ownership

84.7% of 10x Genomics shares are held by institutional investors. 3.7% of Pacific Biosciences of California shares are held by insiders. Comparatively, 8.8% of 10x Genomics shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Pacific Biosciences of California and 10x Genomics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pacific Biosciences of California -81.31% -5,752.12% -19.19%
10x Genomics -10.84% -8.26% -6.52%

Volatility and Risk

Pacific Biosciences of California has a beta of 2.21, indicating that its share price is 121% more volatile than the S&P 500. Comparatively, 10x Genomics has a beta of 2.03, indicating that its share price is 103% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Pacific Biosciences of California and 10x Genomics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pacific Biosciences of California 2 3 0 0 1.60
10x Genomics 1 12 5 0 2.22

Pacific Biosciences of California presently has a consensus price target of $2.57, indicating a potential upside of 23.10%. 10x Genomics has a consensus price target of $68.40, indicating a potential upside of 10.06%. Given Pacific Biosciences of California’s higher possible upside, analysts clearly believe Pacific Biosciences of California is more favorable than 10x Genomics.

Earnings and Valuation

This table compares Pacific Biosciences of California and 10x Genomics”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Pacific Biosciences of California $160.01 million 4.08 -$546.38 million ($0.42) -4.96
10x Genomics $642.82 million 12.60 -$43.54 million ($0.52) -119.51

10x Genomics has higher revenue and earnings than Pacific Biosciences of California. 10x Genomics is trading at a lower price-to-earnings ratio than Pacific Biosciences of California, indicating that it is currently the more affordable of the two stocks.

Summary

10x Genomics beats Pacific Biosciences of California on 10 of the 14 factors compared between the two stocks.

About Pacific Biosciences of California

(Get Free Report)

Pacific Biosciences of California, or PacBio, develops and sells DNA sequencing systems and related products for life science research and clinical applications. The company is known for its single-molecule real-time (SMRT) sequencing technology, which produces long reads that can help researchers study complex regions of the genome and identify genetic variations. Its portfolio includes HiFi sequencing systems such as the Revio and Vega platforms, along with instruments, consumables, software and services used to prepare, sequence and analyze genetic samples.

About 10x Genomics

(Get Free Report)

10x Genomics, Inc. develops technology for studying biological systems at single-cell and spatial resolution. Its instruments, consumables and software help researchers analyze gene expression and other features of cells while preserving information about their location within tissue. The company’s product platforms include Chromium for single-cell analysis, Visium for spatial gene-expression analysis and Xenium for in situ analysis of gene activity within tissue samples. Its tools are used in areas such as immunology, neuroscience, cancer research and drug discovery.

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