Hutchison China MediTech (NASDAQ:HCM) and COMPASS Pathways (NASDAQ:CMPS) are both medical companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, earnings, institutional ownership and risk.
Profitability
This table compares Hutchison China MediTech and COMPASS Pathways' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Hutchison China MediTech | N/A | N/A | N/A |
COMPASS Pathways | N/A | N/A | N/A |
Earnings and Valuation
This table compares Hutchison China MediTech and COMPASS Pathways' top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Hutchison China MediTech | $204.89 million | 20.65 | $-106,020,000.00 | ($0.80) | -36.33 |
COMPASS Pathways | N/A | N/A | $-19,610,000.00 | N/A | N/A |
COMPASS Pathways has lower revenue, but higher earnings than Hutchison China MediTech.
Insider and Institutional Ownership
33.5% of Hutchison China MediTech shares are owned by institutional investors. Comparatively, 15.8% of COMPASS Pathways shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of recent ratings for Hutchison China MediTech and COMPASS Pathways, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Hutchison China MediTech | 0 | 0 | 2 | 0 | 3.00 |
COMPASS Pathways | 0 | 0 | 6 | 0 | 3.00 |
Hutchison China MediTech presently has a consensus target price of $40.00, indicating a potential upside of 37.65%. COMPASS Pathways has a consensus target price of $70.75, indicating a potential upside of 105.97%. Given COMPASS Pathways' higher possible upside, analysts clearly believe COMPASS Pathways is more favorable than Hutchison China MediTech.
Summary
COMPASS Pathways beats Hutchison China MediTech on 3 of the 5 factors compared between the two stocks.