Reviewing SAB Biotherapeutics (NASDAQ:SABS) and Exelixis (NASDAQ:EXEL)

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

Institutional and Insider Ownership

85.3% of Exelixis shares are held by institutional investors. Comparatively, 7.8% of SAB Biotherapeutics shares are held by institutional investors. 2.6% of Exelixis shares are held by insiders. Comparatively, 7.4% of SAB Biotherapeutics shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Exelixis has a beta of 0.45, indicating that its stock price is 55% less volatile than the S&P 500. Comparatively, SAB Biotherapeutics has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Exelixis and SAB Biotherapeutics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Exelixis	1	10	6	1	2.39
SAB Biotherapeutics	1	1	9	0	2.73

Exelixis currently has a consensus target price of $58.85, suggesting a potential downside of 13.87%. SAB Biotherapeutics has a consensus target price of $12.00, suggesting a potential upside of 310.12%. Given SAB Biotherapeutics’ stronger consensus rating and higher probable upside, analysts clearly believe SAB Biotherapeutics is more favorable than Exelixis.

Profitability

This table compares Exelixis and SAB Biotherapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Exelixis	35.45%	45.54%	33.90%
SAB Biotherapeutics	N/A	-6.74%	-6.06%

Earnings and Valuation

This table compares Exelixis and SAB Biotherapeutics”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Exelixis	$2.50 billion	6.68	$782.57 million	$3.34	20.46
SAB Biotherapeutics	N/A	N/A	$13.27 million	($1.30)	-2.25

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

Summary

Exelixis beats SAB Biotherapeutics on 9 of the 14 factors compared between the two stocks.

About Exelixis

Exelixis, Inc., an oncology company, focuses on the discovery, development, and commercialization of new medicines for difficult-to-treat cancers in the United States. The company offers CABOMETYX tablets for the treatment of patients with advanced renal cell carcinoma who received prior anti-angiogenic therapy; and COMETRIQ capsules for the treatment of progressive and metastatic medullary thyroid cancer. Its CABOMETYX and COMETRIQ are derived from cabozantinib, an inhibitor of multiple tyrosine kinases, including MET, AXL, RET, and VEGF receptors. The company also offers COTELLIC, an inhibitor of MEK as a combination regimen to treat specific forms of advanced melanoma; and MINNEBRO, an oral non-steroidal selective blocker of the mineralocorticoid receptor for the treatment of hypertension in Japan. It develops zanzalintinib, a novel, potent, next-generation oral tyrosine kinase inhibitor (TKI) that targets VEGF receptors, MET and the TAM kinases (TYRO3, AXL and MER); and XB002, a next-generation tissue factor (TF)-targeting ADC, administered via intravenous infusion and composed of a human monoclonal antibody (mAb) against TF that is conjugated to an auristatin-based microtubulin inhibitor (MTI) payload. It has research collaborations and license agreements with Ipsen Pharma SAS; Takeda Pharmaceutical Company Ltd.; F. Hoffmann-La Roche Ltd.; Redwood Bioscience, Inc.; R.P. Scherer Technologies, LLC; Catalent Pharma Solutions, Inc.; NBE Therapeutics AG; Aurigene Discovery Technologies Limited; Iconic Therapeutics, Inc.; Invenra, Inc.; StemSynergy Therapeutics, Inc.; Genentech, Inc.; Bristol-Myers Squibb Company; and Daiichi Sankyo Company, Limited, as well as clinical development agreement with Sairopa B.V. for ADU-1805. The company was formerly known as Exelixis Pharmaceuticals, Inc. and changed its name to Exelixis, Inc. in February 2000. Exelixis, Inc. was incorporated in 1994 and is headquartered in Alameda, California.

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.