Rocket Pharmaceuticals (NASDAQ:RCKT) and Bausch Health Companies (NYSE:BHC) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, risk, institutional ownership, profitability, valuation and earnings.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Rocket Pharmaceuticals and Bausch Health Companies, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Rocket Pharmaceuticals | 0 | 1 | 12 | 0 | 2.92 |
Bausch Health Companies | 0 | 5 | 7 | 0 | 2.58 |
Rocket Pharmaceuticals currently has a consensus price target of $57.8889, indicating a potential upside of 6.83%. Bausch Health Companies has a consensus price target of $30.5833, indicating a potential downside of 3.37%. Given Rocket Pharmaceuticals' stronger consensus rating and higher possible upside, research analysts clearly believe Rocket Pharmaceuticals is more favorable than Bausch Health Companies.
Volatility and Risk
Rocket Pharmaceuticals has a beta of 2.05, suggesting that its stock price is 105% more volatile than the S&P 500. Comparatively, Bausch Health Companies has a beta of 1.47, suggesting that its stock price is 47% more volatile than the S&P 500.
Profitability
This table compares Rocket Pharmaceuticals and Bausch Health Companies' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Rocket Pharmaceuticals | N/A | -35.81% | -27.52% |
Bausch Health Companies | -23.92% | 173.20% | 4.21% |
Insider and Institutional Ownership
62.9% of Bausch Health Companies shares are held by institutional investors. 41.4% of Rocket Pharmaceuticals shares are held by company insiders. Comparatively, 12.1% of Bausch Health Companies shares are held by company 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.
Valuation and Earnings
This table compares Rocket Pharmaceuticals and Bausch Health Companies' gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Rocket Pharmaceuticals | N/A | N/A | $-77,270,000.00 | ($1.58) | -34.51 |
Bausch Health Companies | $8.60 billion | 1.31 | $-1,788,000,000.00 | $4.43 | 7.18 |
Rocket Pharmaceuticals has higher earnings, but lower revenue than Bausch Health Companies. Rocket Pharmaceuticals is trading at a lower price-to-earnings ratio than Bausch Health Companies, indicating that it is currently the more affordable of the two stocks.
Summary
Rocket Pharmaceuticals beats Bausch Health Companies on 7 of the 13 factors compared between the two stocks.