Regeneron Pharmaceuticals (NASDAQ:REGN) and Verastem (NASDAQ:VSTM) are both medical companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, risk and dividends.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Regeneron Pharmaceuticals and Verastem, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Regeneron Pharmaceuticals | 0 | 5 | 14 | 1 | 2.80 |
Verastem | 0 | 0 | 2 | 0 | 3.00 |
Regeneron Pharmaceuticals currently has a consensus target price of $637.2083, indicating a potential upside of 34.10%. Verastem has a consensus target price of $3.00, indicating a potential upside of 8.70%. Given Regeneron Pharmaceuticals' higher probable upside, analysts plainly believe Regeneron Pharmaceuticals is more favorable than Verastem.
Profitability
This table compares Regeneron Pharmaceuticals and Verastem's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Regeneron Pharmaceuticals | 38.28% | 28.97% | 20.11% |
Verastem | -590.19% | -189.37% | -67.69% |
Valuation & Earnings
This table compares Regeneron Pharmaceuticals and Verastem's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Regeneron Pharmaceuticals | $7.86 billion | 6.47 | $2.12 billion | $21.47 | 22.13 |
Verastem | $17.46 million | 27.14 | $-149,210,000.00 | ($2.00) | -1.38 |
Regeneron Pharmaceuticals has higher revenue and earnings than Verastem. Verastem is trading at a lower price-to-earnings ratio than Regeneron Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Regeneron Pharmaceuticals has a beta of 0.3, indicating that its stock price is 70% less volatile than the S&P 500. Comparatively, Verastem has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500.
Insider & Institutional Ownership
85.0% of Regeneron Pharmaceuticals shares are held by institutional investors. Comparatively, 42.2% of Verastem shares are held by institutional investors. 11.8% of Regeneron Pharmaceuticals shares are held by insiders. Comparatively, 2.9% of Verastem shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Summary
Regeneron Pharmaceuticals beats Verastem on 12 of the 15 factors compared between the two stocks.