Horizon Therapeutics Public (NASDAQ:HZNP) and Teva Pharmaceutical Industries (NYSE:TEVA) are both large-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, dividends, institutional ownership, risk, profitability, analyst recommendations and valuation.
Insider & Institutional Ownership
88.6% of Horizon Therapeutics Public shares are held by institutional investors. Comparatively, 51.2% of Teva Pharmaceutical Industries shares are held by institutional investors. 4.3% of Horizon Therapeutics Public shares are held by company insiders. Comparatively, 0.6% of Teva Pharmaceutical Industries shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of current recommendations and price targets for Horizon Therapeutics Public and Teva Pharmaceutical Industries, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Horizon Therapeutics Public | 0 | 0 | 11 | 0 | 3.00 |
| Teva Pharmaceutical Industries | 1 | 8 | 3 | 0 | 2.17 |
Horizon Therapeutics Public currently has a consensus price target of $111.3636, indicating a potential upside of 26.65%. Teva Pharmaceutical Industries has a consensus price target of $11.7778, indicating a potential upside of 13.25%. Given Horizon Therapeutics Public's stronger consensus rating and higher possible upside, research analysts clearly believe Horizon Therapeutics Public is more favorable than Teva Pharmaceutical Industries.
Profitability
This table compares Horizon Therapeutics Public and Teva Pharmaceutical Industries' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Horizon Therapeutics Public | 43.55% | 25.66% | 14.19% |
| Teva Pharmaceutical Industries | -24.17% | 19.32% | 4.89% |
Volatility & Risk
Horizon Therapeutics Public has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500. Comparatively, Teva Pharmaceutical Industries has a beta of 1.49, indicating that its share price is 49% more volatile than the S&P 500.
Earnings & Valuation
This table compares Horizon Therapeutics Public and Teva Pharmaceutical Industries' revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Horizon Therapeutics Public | $1.30 billion | 15.16 | $573.02 million | $1.94 | 45.32 |
| Teva Pharmaceutical Industries | $16.89 billion | 0.67 | $-998,000,000.00 | $2.31 | 4.50 |
Horizon Therapeutics Public has higher earnings, but lower revenue than Teva Pharmaceutical Industries. Teva Pharmaceutical Industries is trading at a lower price-to-earnings ratio than Horizon Therapeutics Public, indicating that it is currently the more affordable of the two stocks.
Summary
Horizon Therapeutics Public beats Teva Pharmaceutical Industries on 11 of the 14 factors compared between the two stocks.
