Financial Contrast: Teva Pharmaceutical Industries (NYSE:TEVA) versus Puma Biotechnology (NYSE:PBYI)

Teva Pharmaceutical Industries (NYSE:TEVA) and Puma Biotechnology (NASDAQ:PBYI) are both medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, risk, dividends, institutional ownership and profitability.

Institutional and Insider Ownership

65.1% of Teva Pharmaceutical Industries shares are held by institutional investors. Comparatively, 86.7% of Puma Biotechnology shares are held by institutional investors. 0.5% of Teva Pharmaceutical Industries shares are held by company insiders. Comparatively, 21.5% of Puma Biotechnology shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Teva Pharmaceutical Industries and Puma Biotechnology’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Teva Pharmaceutical Industries $18.85 billion 0.44 -$2.15 billion $2.80 2.93
Puma Biotechnology $251.00 million 1.66 -$113.57 million ($2.99) -3.61

Puma Biotechnology has lower revenue, but higher earnings than Teva Pharmaceutical Industries. Puma Biotechnology is trading at a lower price-to-earnings ratio than Teva Pharmaceutical Industries, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Teva Pharmaceutical Industries has a beta of 1.62, indicating that its stock price is 62% more volatile than the S&P 500. Comparatively, Puma Biotechnology has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500.

Profitability

This table compares Teva Pharmaceutical Industries and Puma Biotechnology’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Teva Pharmaceutical Industries -18.66% 16.84% 4.17%
Puma Biotechnology -35.01% -245.22% -37.87%

Analyst Ratings

This is a summary of current ratings and price targets for Teva Pharmaceutical Industries and Puma Biotechnology, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Teva Pharmaceutical Industries 4 14 5 1 2.13
Puma Biotechnology 3 7 0 0 1.70

Teva Pharmaceutical Industries currently has a consensus price target of $15.00, suggesting a potential upside of 82.93%. Puma Biotechnology has a consensus price target of $24.25, suggesting a potential upside of 124.75%. Given Puma Biotechnology’s higher probable upside, analysts plainly believe Puma Biotechnology is more favorable than Teva Pharmaceutical Industries.

Summary

Teva Pharmaceutical Industries beats Puma Biotechnology on 10 of the 15 factors compared between the two stocks.

Teva Pharmaceutical Industries Company Profile

Teva Pharmaceutical Industries Limited, a pharmaceutical company, develops, manufactures, markets, and distributes generic medicines and a portfolio of specialty medicines worldwide. It operates through two segments, Generic Medicines and Specialty Medicines. The Generic Medicines segment offers sterile products, hormones, narcotics, high-potency drugs, and cytotoxic substances in various dosage forms, including tablets, capsules, injectables, inhalants, liquids, ointments, and creams. This segment also develops, manufactures, and sells active pharmaceutical ingredients. The Specialty Medicines segment provides specialty medicines for use in central nervous system and respiratory indications. Its products in the central nervous system area comprise Copaxone for the treatment of relapsing forms of MS; and AUSTEDO for the treatment of tardive dyskinesia and chorea associated with Huntington disease. This segment's products in the respiratory market include ProAir, ProAir Respiclick, QVAR, Duoresp Spiromax, Qnasl, Braltus, Cinqair/Cinqaero, and Aerivio Spiromax for the treatment of asthma and chronic obstructive pulmonary disease, as well as Bendeka, Treanda, Granix, Trisenox, Lonquex, and Tevagrastim/Ratiograstim products in the oncology market. The company has collaboration arrangements with Otsuka Pharmaceutical Co. Ltd. and Regeneron Pharmaceuticals, Inc. Teva Pharmaceutical Industries Limited was founded in 1901 and is headquartered in Petach Tikva, Israel.

Puma Biotechnology Company Profile

Puma Biotechnology, Inc., a biopharmaceutical company, focuses on the development and commercialization of products to enhance cancer care. Its drug candidates include PB272 neratinib (oral) for the treatment of early stage breast cancer, metastatic breast cancer, non-small cell lung cancer, HER2 mutation-positive solid tumors, and HER2-mutated non-amplified breast cancer; and PB272 neratinib (intravenous). The company also develops PB357, an orally administered agent that is an irreversible tyrosine kinase inhibitor that blocks signal transduction through the epidermal growth factor receptors, HER1, HER2, and HER4. It has a license agreement with Pfizer, Inc. for the development, manufacture, and commercialization of PB272 neratinib (oral), PB272 neratinib (intravenous), PB357, and certain related compounds. Puma Biotechnology, Inc. was founded in 2010 and is headquartered in Los Angeles, California.

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