Contrasting Beta Bionics (NASDAQ:BBNX) and Pacific Biosciences of California (NASDAQ:PACB)
by Mitch Edgeman · The Markets DailyPacific Biosciences of California (NASDAQ:PACB – Get Free Report) and Beta Bionics (NASDAQ:BBNX – Get Free Report) are both small-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, earnings, risk, valuation, analyst recommendations and institutional ownership.
Profitability
This table compares Pacific Biosciences of California and Beta Bionics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Pacific Biosciences of California | -80.35% | -571.06% | -18.82% |
| Beta Bionics | -60.27% | -23.00% | -20.55% |
Earnings & Valuation
This table compares Pacific Biosciences of California and Beta Bionics”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Pacific Biosciences of California | $160.01 million | 3.20 | -$546.38 million | ($0.43) | -3.84 |
| Beta Bionics | $100.25 million | 7.48 | -$73.20 million | ($1.51) | -11.14 |
Beta Bionics has lower revenue, but higher earnings than Pacific Biosciences of California. Beta Bionics 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.
Analyst Recommendations
This is a summary of current ratings and price targets for Pacific Biosciences of California and Beta Bionics, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Pacific Biosciences of California | 2 | 2 | 1 | 0 | 1.80 |
| Beta Bionics | 1 | 3 | 6 | 1 | 2.64 |
Pacific Biosciences of California presently has a consensus price target of $1.83, indicating a potential upside of 11.11%. Beta Bionics has a consensus price target of $19.70, indicating a potential upside of 17.12%. Given Beta Bionics’ stronger consensus rating and higher possible upside, analysts clearly believe Beta Bionics is more favorable than Pacific Biosciences of California.
Volatility and Risk
Pacific Biosciences of California has a beta of 2.35, suggesting that its share price is 135% more volatile than the S&P 500. Comparatively, Beta Bionics has a beta of 3.4, suggesting that its share price is 240% more volatile than the S&P 500.
Summary
Beta Bionics beats Pacific Biosciences of California on 9 of the 13 factors compared between the two stocks.
About Pacific Biosciences of California
Pacific Biosciences of California, Inc. designs, develops, and manufactures sequencing solution to resolve genetically complex problems. The company provides sequencing systems; consumable products, including single molecule real-time (SMRT) technology; long-red sequencing; and various reagent kits designed for specific workflow, such as preparation kit to convert DNA into SMRTbell double-stranded DNA library formats, including molecular biology reagents, such as ligase, buffers, and exonucleases. It also offers binding kits, such as modified DNA polymerase used to bind SMRTbell libraries to the polymerase in preparation for sequencing; and sequencing kits comprise reagents required for on-instrument, real-time sequencing, including the phospholinked nucleotides. In addition, it provides revio system + sequel systems which conduct, monitor, and analyze single-molecule biochemical reactions in real time; SBB short-read sequencing; onso instrument conducts, monitors, and analyzes SBB biochemical reactions; and SBB consumable, including flow cells, clustering, and sequencing reagent kits. The company serves academic and governmental research institutions; commercial testing and service laboratories; genome centers; public health labs, hospitals and clinical research institutes, and contract research organizations; pharmaceutical companies; and agricultural companies. It markets its products through a sales force and distribution partners in Asia, Australia, Europe, the Middle East, Africa, and Latin America. It has a development and commercialization agreement with Invitae Corporation; and a collaboration with Radboud University Medical to explore genetic causes of rare and genetic diseases. The company was formerly known as Nanofluidics, Inc. and changed its name to Pacific Biosciences of California, Inc. in 2005. Pacific Biosciences of California, Inc. was incorporated in 2000 and is headquartered in Menlo Park, California.
About Beta Bionics
Beta Bionics, Inc. is a commercial-stage medical device company. It engages in the design, development, and commercialization of solutions for insulin-requiring people with diabetes. The company was founded by Edward R. Damiano on October 21, 2015 and is headquartered in Irvine, CA.