InnovAge (OTCMKTS:INNV) and Bausch Health Companies (NYSE:BHC) are both medical companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, dividends, risk, earnings and valuation.
Institutional & Insider Ownership
62.9% of Bausch Health Companies shares are held by institutional investors. 12.8% of InnovAge shares are held by insiders. Comparatively, 12.1% of Bausch Health Companies shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of recent recommendations and price targets for InnovAge and Bausch Health Companies, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| InnovAge | 0 | 1 | 5 | 0 | 2.83 |
| Bausch Health Companies | 1 | 4 | 7 | 0 | 2.50 |
InnovAge presently has a consensus price target of $29.80, suggesting a potential upside of 22.79%. Bausch Health Companies has a consensus price target of $32.5833, suggesting a potential upside of 16.16%. Given InnovAge's stronger consensus rating and higher possible upside, research analysts plainly believe InnovAge is more favorable than Bausch Health Companies.
Profitability
This table compares InnovAge and Bausch Health Companies' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| InnovAge | -35.85% | -1,611.96% | -77.85% |
| Bausch Health Companies | -23.92% | 173.20% | 4.21% |
Risk and Volatility
InnovAge has a beta of 2.1, suggesting that its share price is 110% more volatile than the S&P 500. Comparatively, Bausch Health Companies has a beta of 1.47, suggesting that its share price is 47% more volatile than the S&P 500.
Earnings & Valuation
This table compares InnovAge and Bausch Health Companies' revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| InnovAge | $23.99 million | 134.74 | $-8,280,000.00 | ($4.16) | -5.83 |
| Bausch Health Companies | $8.60 billion | 1.17 | $-1,788,000,000.00 | $4.43 | 6.38 |
InnovAge has higher earnings, but lower revenue than Bausch Health Companies. InnovAge is trading at a lower price-to-earnings ratio than Bausch Health Companies, indicating that it is currently the more affordable of the two stocks.
Summary
Bausch Health Companies beats InnovAge on 8 of the 14 factors compared between the two stocks.
