Theratechnologies (NASDAQ:THTX) and Theravance Biopharma (NASDAQ:TBPH) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.
Profitability
This table compares Theratechnologies and Theravance Biopharma's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Theratechnologies | -37.22% | -135.78% | -21.36% |
Theravance Biopharma | -345.16% | N/A | -51.60% |
Volatility & Risk
Theratechnologies has a beta of 1.79, suggesting that its stock price is 79% more volatile than the S&P 500. Comparatively, Theravance Biopharma has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Theratechnologies and Theravance Biopharma, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Theratechnologies | 0 | 2 | 3 | 0 | 2.60 |
Theravance Biopharma | 0 | 0 | 7 | 0 | 3.00 |
Theratechnologies currently has a consensus price target of $7.1250, indicating a potential upside of 86.52%. Theravance Biopharma has a consensus price target of $33.2857, indicating a potential upside of 58.88%. Given Theratechnologies' higher possible upside, equities analysts plainly believe Theratechnologies is more favorable than Theravance Biopharma.
Institutional & Insider Ownership
6.3% of Theratechnologies shares are owned by institutional investors. Comparatively, 80.4% of Theravance Biopharma shares are owned by institutional investors. 5.9% of Theravance Biopharma shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Theratechnologies and Theravance Biopharma's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Theratechnologies | $63.22 million | 5.67 | $-12,500,000.00 | ($0.14) | -27.29 |
Theravance Biopharma | $73.41 million | 18.61 | $-236,460,000.00 | ($4.25) | -4.93 |
Theratechnologies has higher earnings, but lower revenue than Theravance Biopharma. Theratechnologies is trading at a lower price-to-earnings ratio than Theravance Biopharma, indicating that it is currently the more affordable of the two stocks.
Summary
Theravance Biopharma beats Theratechnologies on 8 of the 14 factors compared between the two stocks.