Teva Pharmaceutical Industries (NYSE:TEVA) and Viela Bio (NASDAQ:VIE) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.
Institutional & Insider Ownership
51.2% of Teva Pharmaceutical Industries shares are owned by institutional investors. Comparatively, 47.0% of Viela Bio shares are owned by institutional investors. 0.6% of Teva Pharmaceutical Industries shares are owned by insiders. Comparatively, 31.5% of Viela Bio shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Teva Pharmaceutical Industries and Viela Bio, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Teva Pharmaceutical Industries | 1 | 8 | 4 | 0 | 2.23 |
Viela Bio | 0 | 5 | 2 | 0 | 2.29 |
Teva Pharmaceutical Industries presently has a consensus target price of $12.2222, indicating a potential upside of 19.83%. Viela Bio has a consensus target price of $57.00, indicating a potential upside of 7.53%. Given Teva Pharmaceutical Industries' higher probable upside, equities analysts plainly believe Teva Pharmaceutical Industries is more favorable than Viela Bio.
Profitability
This table compares Teva Pharmaceutical Industries and Viela Bio's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Teva Pharmaceutical Industries | -24.17% | 19.32% | 4.89% |
Viela Bio | N/A | -33.97% | -31.49% |
Volatility and Risk
Teva Pharmaceutical Industries has a beta of 1.49, indicating that its share price is 49% more volatile than the S&P 500. Comparatively, Viela Bio has a beta of 0.43, indicating that its share price is 57% less volatile than the S&P 500.
Valuation and Earnings
This table compares Teva Pharmaceutical Industries and Viela Bio's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Teva Pharmaceutical Industries | $16.89 billion | 0.66 | $-998,000,000.00 | $2.31 | 4.42 |
Viela Bio | $50 million | 58.26 | $-86,430,000.00 | ($7.02) | -7.55 |
Viela Bio has lower revenue, but higher earnings than Teva Pharmaceutical Industries. Viela Bio 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.
Summary
Teva Pharmaceutical Industries beats Viela Bio on 9 of the 14 factors compared between the two stocks.