Adaptive Biotechnologies (NASDAQ:ADPT) vs. Illumina (NASDAQ:ILMN) Head-To-Head Analysis
by Kim Johansen · The Markets DailyIllumina (NASDAQ:ILMN – Get Free Report) and Adaptive Biotechnologies (NASDAQ:ADPT – Get Free Report) are both healthcare companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, dividends, risk, valuation, institutional ownership and analyst recommendations.
Institutional and Insider Ownership
89.4% of Illumina shares are owned by institutional investors. Comparatively, 99.2% of Adaptive Biotechnologies shares are owned by institutional investors. 2.9% of Illumina shares are owned by insiders. Comparatively, 5.7% of Adaptive Biotechnologies shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Risk and Volatility
Illumina has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500. Comparatively, Adaptive Biotechnologies has a beta of 2.18, suggesting that its stock price is 118% more volatile than the S&P 500.
Profitability
This table compares Illumina and Adaptive Biotechnologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Illumina | 19.72% | 28.38% | 12.11% |
| Adaptive Biotechnologies | -20.73% | -36.81% | -13.77% |
Valuation and Earnings
This table compares Illumina and Adaptive Biotechnologies”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Illumina | $4.34 billion | 7.89 | $850.00 million | $5.81 | 38.99 |
| Adaptive Biotechnologies | $308.08 million | 13.84 | -$59.50 million | ($0.41) | -65.15 |
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.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Illumina and Adaptive Biotechnologies, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Illumina | 3 | 6 | 10 | 0 | 2.37 |
| Adaptive Biotechnologies | 1 | 1 | 6 | 0 | 2.62 |
Illumina presently has a consensus price target of $244.24, indicating a potential upside of 7.81%. Adaptive Biotechnologies has a consensus price target of $30.06, indicating a potential upside of 12.55%. Given Adaptive Biotechnologies’ stronger consensus rating and higher probable upside, analysts clearly believe Adaptive Biotechnologies is more favorable than Illumina.
Summary
Illumina beats Adaptive Biotechnologies on 8 of the 14 factors compared between the two stocks.
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.
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.