Iqvia (IQV) vs. EXACT Sciences (EXAS) Critical Analysis

Iqvia (NYSE: IQV) and EXACT Sciences (NASDAQ:EXAS) are both business services companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, institutional ownership, analyst recommendations and profitability.

Volatility & Risk

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Iqvia has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500. Comparatively, EXACT Sciences has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500.

Institutional & Insider Ownership

92.4% of Iqvia shares are owned by institutional investors. Comparatively, 82.0% of EXACT Sciences shares are owned by institutional investors. 6.0% of Iqvia shares are owned by company insiders. Comparatively, 4.0% of EXACT Sciences shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Iqvia and EXACT Sciences’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Iqvia 13.44% 13.03% 4.65%
EXACT Sciences -43.01% -24.13% -21.62%

Valuation and Earnings

This table compares Iqvia and EXACT Sciences’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Iqvia $9.74 billion 2.08 $1.31 billion $4.36 22.31
EXACT Sciences $265.99 million 21.61 -$114.39 million ($0.99) -48.00

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

Analyst Ratings

This is a summary of recent ratings and target prices for Iqvia and EXACT Sciences, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Iqvia 0 6 11 0 2.65
EXACT Sciences 0 4 10 0 2.71

Iqvia presently has a consensus price target of $110.38, indicating a potential upside of 13.48%. EXACT Sciences has a consensus price target of $53.23, indicating a potential upside of 12.02%. Given Iqvia’s higher probable upside, analysts clearly believe Iqvia is more favorable than EXACT Sciences.

Summary

Iqvia beats EXACT Sciences on 11 of the 14 factors compared between the two stocks.

Iqvia Company Profile

IQVIA Holdings Inc., formerly Quintiles IMS Holdings, Inc., provides integrated information and technology-enabled healthcare services. The Company operates through segments, including Commercial Solutions; Research & Development Solutions, and Integrated Engagement Services. The Commercial Solutions segment offerings include national information offerings, sub-national information offerings, technology solutions, and workflow analytics and consulting services. The Research & Development Solutions segment provides biopharmaceutical development services. It offers project management and clinical monitoring, clinical trial support services, Q2 solutions, and strategic planning and design. The Integrated Engagement Services segment offerings include healthcare provider engagement services, patient engagement services, and scientific strategy and medical affairs services. The Company has its operations in the Americas, Europe and Africa, and the Asia-Pacific.

EXACT Sciences Company Profile

Exact Sciences Corporation, a molecular diagnostics company, focuses on developing products for the early detection and prevention of various cancers in the United States. The company offers Cologuard, a non-invasive stool-based DNA screening test for the early detection of colorectal cancer and pre-cancer. It has license agreements with MAYO Foundation for Medical Education and Research; and Hologic, Inc. Exact Sciences Corporation was founded in 1995 and is headquartered in Madison, Wisconsin.

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