Profits for biotech sector

Lately most stocks of the biotech sector are in high demand. Over the past 3 months the sector is around 18 percent higher. Investors who bought the average share of the sector in 2007 now have a very huge price gain of around 94 percent. Since 2012 the sector trades 58 percent higher. On average the sector pays investors a moderate dividend yield of 0,4 percent.

Returns biotech sector

In terms of their price/earnings ratios the American biotech companies are cheaper than the European ones. Per US share investors pay now less the for the expected earnings per share. So it seems the markets expect less growth of them. The whole sector now trades at a quite low CAPE-ratio of 8. Among the shares with the higher CAPE-ratios we see Realco , Illumina and Genus . Shares with the lower CAPE-ratios are PDL Biopharma, Xencor and Catalent. The European biotech sector has a CAPE of 29 and the US's sector of 33. Both the US and the European sector gained the past 12 months.

The European stocks in this sector are around 29 percent higher and the US's are 33 percent higher.

The European biotech companies now deliver more dividends then the US ones. These in Europe now yield 0,6 percent and these in US 0,4 percent. BB Biotech , IBA and Genus have now the highest dividend returns (in case the dividends per share are unchanged).

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