MorphoSys (NASDAQ:MOR) and Teva Pharmaceutical Industries (NYSE:TEVA) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, valuation, earnings, analyst recommendations, risk and institutional ownership.
Valuation & Earnings
This table compares MorphoSys and Teva Pharmaceutical Industries' gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
MorphoSys | $80.43 million | 40.34 | $-115,380,000.00 | ($0.91) | -27.10 |
Teva Pharmaceutical Industries | $16.89 billion | 0.68 | $-998,000,000.00 | $2.31 | 4.56 |
MorphoSys has higher earnings, but lower revenue than Teva Pharmaceutical Industries. MorphoSys is trading at a lower price-to-earnings ratio than Teva Pharmaceutical Industries, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
MorphoSys has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500. Comparatively, Teva Pharmaceutical Industries has a beta of 1.49, meaning that its share price is 49% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for MorphoSys and Teva Pharmaceutical Industries, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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MorphoSys | 0 | 5 | 3 | 0 | 2.38 |
Teva Pharmaceutical Industries | 2 | 9 | 4 | 0 | 2.13 |
Teva Pharmaceutical Industries has a consensus target price of $11.6364, indicating a potential upside of 10.19%. Given Teva Pharmaceutical Industries' higher possible upside, analysts plainly believe Teva Pharmaceutical Industries is more favorable than MorphoSys.
Insider and Institutional Ownership
3.1% of MorphoSys shares are held by institutional investors. Comparatively, 51.2% of Teva Pharmaceutical Industries shares are held by institutional investors. 0.6% of Teva Pharmaceutical Industries shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares MorphoSys and Teva Pharmaceutical Industries' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
MorphoSys | 8.76% | 4.51% | 2.25% |
Teva Pharmaceutical Industries | -24.17% | 19.32% | 4.89% |
Summary
Teva Pharmaceutical Industries beats MorphoSys on 9 of the 14 factors compared between the two stocks.