Global Blood Therapeutics (NASDAQ:GBT) and Jazz Pharmaceuticals (NASDAQ:JAZZ) are both mid-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, dividends, analyst recommendations and valuation.
Profitability
This table compares Global Blood Therapeutics and Jazz Pharmaceuticals' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Global Blood Therapeutics | -332.94% | -56.43% | -39.32% |
| Jazz Pharmaceuticals | 7.86% | 20.16% | 10.85% |
Valuation and Earnings
This table compares Global Blood Therapeutics and Jazz Pharmaceuticals' top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Global Blood Therapeutics | $2.11 million | 1,167.73 | $-266,770,000.00 | ($4.71) | -8.42 |
| Jazz Pharmaceuticals | $2.16 billion | 4.25 | $523.37 million | $14.60 | 11.17 |
Jazz Pharmaceuticals has higher revenue and earnings than Global Blood Therapeutics. Global Blood Therapeutics is trading at a lower price-to-earnings ratio than Jazz Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
95.7% of Jazz Pharmaceuticals shares are owned by institutional investors. 4.3% of Global Blood Therapeutics shares are owned by company insiders. Comparatively, 4.6% of Jazz Pharmaceuticals 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.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Global Blood Therapeutics and Jazz Pharmaceuticals, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Global Blood Therapeutics | 0 | 5 | 12 | 0 | 2.71 |
| Jazz Pharmaceuticals | 1 | 1 | 16 | 0 | 2.83 |
Global Blood Therapeutics currently has a consensus price target of $93.8235, suggesting a potential upside of 133.68%. Jazz Pharmaceuticals has a consensus price target of $184.00, suggesting a potential upside of 11.38%. Given Global Blood Therapeutics' higher probable upside, research analysts plainly believe Global Blood Therapeutics is more favorable than Jazz Pharmaceuticals.
Risk and Volatility
Global Blood Therapeutics has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500. Comparatively, Jazz Pharmaceuticals has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500.
Summary
Jazz Pharmaceuticals beats Global Blood Therapeutics on 11 of the 14 factors compared between the two stocks.
