Theravance Biopharma (NASDAQ: TBPH) and Johnson & Johnson (NYSE:JNJ) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, profitability, risk, earnings and dividends.
Insider & Institutional Ownership
86.4% of Theravance Biopharma shares are owned by institutional investors. Comparatively, 65.9% of Johnson & Johnson shares are owned by institutional investors. 6.1% of Theravance Biopharma shares are owned by insiders. Comparatively, 0.2% of Johnson & Johnson shares are owned 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.
Valuation and Earnings
This table compares Theravance Biopharma and Johnson & Johnson’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Theravance Biopharma||$48.65 million||29.97||-$190.66 million||($5.17)||-5.21|
|Johnson & Johnson||$71.89 billion||5.27||$16.54 billion||$5.76||24.50|
Johnson & Johnson has higher revenue and earnings than Theravance Biopharma. Theravance Biopharma is trading at a lower price-to-earnings ratio than Johnson & Johnson, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Theravance Biopharma has a beta of 2.1, indicating that its stock price is 110% more volatile than the S&P 500. Comparatively, Johnson & Johnson has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500.
Johnson & Johnson pays an annual dividend of $3.36 per share and has a dividend yield of 2.4%. Theravance Biopharma does not pay a dividend. Johnson & Johnson pays out 58.3% of its earnings in the form of a dividend. Johnson & Johnson has raised its dividend for 54 consecutive years.
This table compares Theravance Biopharma and Johnson & Johnson’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Johnson & Johnson||21.28%||27.38%||13.20%|
This is a summary of current ratings and price targets for Theravance Biopharma and Johnson & Johnson, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Johnson & Johnson||4||4||10||0||2.33|
Theravance Biopharma currently has a consensus target price of $42.67, suggesting a potential upside of 58.32%. Johnson & Johnson has a consensus target price of $144.59, suggesting a potential upside of 2.44%. Given Theravance Biopharma’s stronger consensus rating and higher possible upside, equities analysts plainly believe Theravance Biopharma is more favorable than Johnson & Johnson.
Johnson & Johnson beats Theravance Biopharma on 9 of the 16 factors compared between the two stocks.
Theravance Biopharma Company Profile
Theravance Biopharma, Inc. is a biopharmaceutical company. The Company is engaged in creating medicines for patients suffering from serious illness. The Company operates in the segment of discovery (research), development and commercialization of human therapeutics. The Company’s pipeline of internally discovered product candidates includes medicines to address the unmet needs of patients being treated for serious conditions primarily in the acute care setting. Its commercial product VIBATIV (telavancin) is a once-daily dual-mechanism antibiotic approved in the United States and Europe for certain difficult-to-treat infections. Its Revefenacin (TD-4208) is a long-acting muscarinic antagonist (LAMA) being developed as a nebulized treatment for chronic obstructive pulmonary disease. Its neprilysin (NEP) inhibitor program is designed to develop selective NEP inhibitors for the treatment of a range of cardiovascular and renal diseases.
Johnson & Johnson Company Profile
Johnson & Johnson is a holding company, which is engaged in the research and development, manufacture and sale of a range of products in the healthcare field. It operates through three segments: Consumer, Pharmaceutical and Medical Devices. Its primary focus is products related to human health and well-being. The Consumer segment includes a range of products used in the baby care, oral care, skin care, over-the-counter pharmaceutical, women’s health and wound care markets. The Pharmaceutical segment is focused on five therapeutic areas, including immunology, infectious diseases, neuroscience, oncology, and cardiovascular and metabolic diseases. The Medical Devices segment includes a range of products used in the orthopedic, surgery, cardiovascular, diabetes care and vision care fields. Its research facilities are located in the United States, Belgium, Brazil, Canada, China, France, Germany, India, Israel, Japan, the Netherlands, Singapore, Switzerland and the United Kingdom.
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