Karyopharm Therapeutics (NASDAQ:KPTI) and Taro Pharmaceutical Industries (NYSE:TARO) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, valuation, dividends and analyst recommendations.
Earnings and Valuation
This table compares Karyopharm Therapeutics and Taro Pharmaceutical Industries' top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Karyopharm Therapeutics | $40.89 million | 18.29 | $-199,590,000.00 | ($3.22) | -3.11 |
Taro Pharmaceutical Industries | $644.77 million | 4.32 | $244.24 million | $6.35 | 11.47 |
Taro Pharmaceutical Industries has higher revenue and earnings than Karyopharm Therapeutics. Karyopharm Therapeutics is trading at a lower price-to-earnings ratio than Taro Pharmaceutical Industries, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Karyopharm Therapeutics and Taro Pharmaceutical Industries' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Karyopharm Therapeutics | -221.23% | -187.66% | -56.42% |
Taro Pharmaceutical Industries | -45.94% | 10.36% | 8.38% |
Analyst Ratings
This is a breakdown of recent ratings and price targets for Karyopharm Therapeutics and Taro Pharmaceutical Industries, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Karyopharm Therapeutics | 0 | 1 | 8 | 0 | 2.89 |
Taro Pharmaceutical Industries | 0 | 0 | 1 | 0 | 3.00 |
Karyopharm Therapeutics currently has a consensus target price of $30.6250, indicating a potential upside of 205.64%. Taro Pharmaceutical Industries has a consensus target price of $81.00, indicating a potential upside of 11.22%. Given Karyopharm Therapeutics' higher probable upside, equities research analysts clearly believe Karyopharm Therapeutics is more favorable than Taro Pharmaceutical Industries.
Institutional & Insider Ownership
88.6% of Karyopharm Therapeutics shares are held by institutional investors. Comparatively, 11.2% of Taro Pharmaceutical Industries shares are held by institutional investors. 13.3% of Karyopharm Therapeutics shares are held by insiders. Comparatively, 13.8% of Taro Pharmaceutical Industries shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Risk & Volatility
Karyopharm Therapeutics has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500. Comparatively, Taro Pharmaceutical Industries has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500.
Summary
Taro Pharmaceutical Industries beats Karyopharm Therapeutics on 8 of the 14 factors compared between the two stocks.