BELLUS Health (NASDAQ:BLU) and Theravance Biopharma (NASDAQ:TBPH) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, risk, analyst recommendations and earnings.
Profitability
This table compares BELLUS Health and Theravance Biopharma's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| BELLUS Health | -190,199.98% | -30.46% | -28.77% |
| Theravance Biopharma | -345.16% | N/A | -51.60% |
Valuation & Earnings
This table compares BELLUS Health and Theravance Biopharma's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| BELLUS Health | $30,000.00 | 11,619.99 | $-25,970,000.00 | ($0.55) | -8.09 |
| Theravance Biopharma | $73.41 million | 18.96 | $-236,460,000.00 | ($4.25) | -5.02 |
BELLUS Health has higher earnings, but lower revenue than Theravance Biopharma. BELLUS Health is trading at a lower price-to-earnings ratio than Theravance Biopharma, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
38.4% of BELLUS Health shares are held by institutional investors. Comparatively, 80.4% of Theravance Biopharma shares are held by institutional investors. 24.2% of BELLUS Health shares are held by insiders. Comparatively, 5.9% of Theravance Biopharma shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current ratings for BELLUS Health and Theravance Biopharma, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| BELLUS Health | 0 | 2 | 6 | 0 | 2.75 |
| Theravance Biopharma | 0 | 0 | 7 | 0 | 3.00 |
BELLUS Health presently has a consensus target price of $8.6167, indicating a potential upside of 93.63%. Theravance Biopharma has a consensus target price of $33.2857, indicating a potential upside of 55.83%. Given BELLUS Health's higher probable upside, equities analysts clearly believe BELLUS Health is more favorable than Theravance Biopharma.
Volatility & Risk
BELLUS Health has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500. Comparatively, Theravance Biopharma has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500.
Summary
Theravance Biopharma beats BELLUS Health on 8 of the 14 factors compared between the two stocks.
