Veru (NASDAQ:VERU) and Taro Pharmaceutical Industries (NYSE:TARO) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, profitability, analyst recommendations, institutional ownership and valuation.
Earnings & Valuation
This table compares Veru 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 |
---|
Veru | $42.59 million | 17.48 | $-18,970,000.00 | ($0.11) | -94.09 |
Taro Pharmaceutical Industries | $644.77 million | 4.32 | $244.24 million | $6.35 | 11.47 |
Taro Pharmaceutical Industries has higher revenue and earnings than Veru. Veru 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.
Institutional and Insider Ownership
23.3% of Veru shares are held by institutional investors. Comparatively, 11.2% of Taro Pharmaceutical Industries shares are held by institutional investors. 26.1% of Veru shares are held by company insiders. Comparatively, 13.8% of Taro Pharmaceutical Industries shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Veru and Taro Pharmaceutical Industries, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Veru | 0 | 0 | 4 | 0 | 3.00 |
Taro Pharmaceutical Industries | 0 | 0 | 1 | 0 | 3.00 |
Veru currently has a consensus price target of $19.25, suggesting a potential upside of 85.99%. Taro Pharmaceutical Industries has a consensus price target of $81.00, suggesting a potential upside of 11.22%. Given Veru's higher possible upside, equities analysts plainly believe Veru is more favorable than Taro Pharmaceutical Industries.
Volatility & Risk
Veru has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500. Comparatively, Taro Pharmaceutical Industries has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500.
Profitability
This table compares Veru 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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Veru | -44.55% | -23.72% | -13.80% |
Taro Pharmaceutical Industries | -45.94% | 10.36% | 8.38% |
Summary
Taro Pharmaceutical Industries beats Veru on 7 of the 13 factors compared between the two stocks.