Financial Analysis: SAB Biotherapeutics (NASDAQ:SABS) versus Veracyte (NASDAQ:VCYT)

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

Risk & Volatility

SAB Biotherapeutics has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500. Comparatively, Veracyte has a beta of 1.95, suggesting that its share price is 95% more volatile than the S&P 500.

Earnings and Valuation

This table compares SAB Biotherapeutics and Veracyte”s top-line 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	210.93	$13.27 million	($1.30)	-2.35
Veracyte	$517.15 million	6.87	$66.35 million	$1.41	31.34

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

Institutional & Insider Ownership

7.8% of SAB Biotherapeutics shares are held by institutional investors. 7.4% of SAB Biotherapeutics shares are held by company insiders. Comparatively, 1.6% of Veracyte shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings for SAB Biotherapeutics and Veracyte, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SAB Biotherapeutics	1	1	9	0	2.73
Veracyte	1	2	6	2	2.82

SAB Biotherapeutics presently has a consensus price target of $12.00, indicating a potential upside of 292.16%. Veracyte has a consensus price target of $55.78, indicating a potential upside of 26.22%. Given SAB Biotherapeutics’ higher possible upside, equities analysts clearly believe SAB Biotherapeutics is more favorable than Veracyte.

Profitability

This table compares SAB Biotherapeutics and Veracyte’s 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%
Veracyte	20.37%	9.26%	8.61%

Summary

Veracyte beats SAB Biotherapeutics on 10 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 Veracyte

Veracyte, Inc. engages in the research, development and commercialization of diagnostic products. The firm’s portfolio includes Afirma, Percepta, and Envisia. It intends to treat thyroid cancer, improve lung cancer screening, and clarify the diagnosis of idiopathic pulmonary fibrosis. The company was founded by Bonnie H. Anderson and Y. Douglas Dolginow on August 15, 2006 and is headquartered in South San Francisco, CA.