KemPharm (NASDAQ:KMPH) and Shiseido (OTCMKTS:SSDOY) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, earnings and analyst recommendations.
Volatility & Risk
KemPharm has a beta of 1.72, meaning that its stock price is 72% more volatile than the S&P 500. Comparatively, Shiseido has a beta of 0.59, meaning that its stock price is 41% less volatile than the S&P 500.
Shiseido pays an annual dividend of $0.36 per share and has a dividend yield of 0.5%. KemPharm does not pay a dividend. Shiseido pays out 23.8% of its earnings in the form of a dividend.
Earnings & Valuation
This table compares KemPharm and Shiseido’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Shiseido||$9.92 billion||3.07||$558.78 million||$1.51||50.49|
Shiseido has higher revenue and earnings than KemPharm. KemPharm is trading at a lower price-to-earnings ratio than Shiseido, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current recommendations and price targets for KemPharm and Shiseido, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
KemPharm presently has a consensus price target of $12.67, indicating a potential upside of 681.89%. Given KemPharm’s higher probable upside, equities research analysts plainly believe KemPharm is more favorable than Shiseido.
Insider & Institutional Ownership
34.7% of KemPharm shares are held by institutional investors. 14.9% of KemPharm shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This table compares KemPharm and Shiseido’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Shiseido beats KemPharm on 8 of the 14 factors compared between the two stocks.
KemPharm, Inc., a specialty pharmaceutical company, discovers and develops various proprietary prodrugs in the United States. The company's product candidate includes KP415 and KP484 for the treatment of attention deficit hyperactivity disorder; and KP879 for the treatment of stimulant use disorder. It also provides APADAZ, an immediate-release combination product candidate of benzhydrocodone and acetaminophen to treat the short-term management of acute pain. The company has a collaboration agreement with KVK-Tech, Inc. to manufacture and commercialize APADAZ. KemPharm, Inc. was founded in 2006 and is headquartered in Celebration, Florida.
Shiseido Company, Limited engages in the production and sale of cosmetics in Japan and internationally. It also produces and sells health and beauty foods, and over-the-counter drugs; and hair and beauty salon products, as well as fragrances and body care products. In addition, the company operates beauty salons and restaurants. Further, it produces and sells cosmetic raw materials, medical-use drugs, medical cosmetics, and precision and analytical equipment. The company sells its products through cosmetic stores, department stores, mass merchandising stores, drug stores, and perfumeries. Shiseido Company, Limited was founded in 1872 and is headquartered in Tokyo, Japan.
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