Veru (NASDAQ: VERU) and Teva Pharmaceutical Industries (NYSE:TEVA) are both medical companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.

Analyst Recommendations

This is a breakdown of recent recommendations for Veru and Teva Pharmaceutical Industries, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Veru 0 0 2 0 3.00
Teva Pharmaceutical Industries 3 17 6 0 2.12

Veru presently has a consensus target price of $5.00, indicating a potential upside of 300.00%. Teva Pharmaceutical Industries has a consensus target price of $20.14, indicating a potential upside of 6.43%. Given Veru’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Veru is more favorable than Teva Pharmaceutical Industries.

Earnings & Valuation

This table compares Veru and Teva Pharmaceutical Industries’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Veru $22.13 million 3.01 $340,000.00 ($0.19) -6.58
Teva Pharmaceutical Industries $21.90 billion 0.88 $329.00 million ($5.95) -3.18

Teva Pharmaceutical Industries has higher revenue and earnings than Veru. Veru 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Veru -42.02% -16.78% -10.64%
Teva Pharmaceutical Industries -24.35% 15.70% 5.12%

Institutional & Insider Ownership

4.6% of Veru shares are held by institutional investors. Comparatively, 52.0% of Teva Pharmaceutical Industries shares are held by institutional investors. 10.9% of Veru shares are held by insiders. Comparatively, 7.1% of Teva Pharmaceutical Industries shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

Teva Pharmaceutical Industries pays an annual dividend of $0.72 per share and has a dividend yield of 3.8%. Veru does not pay a dividend. Teva Pharmaceutical Industries pays out -12.1% of its earnings in the form of a dividend.

Risk & Volatility

Veru has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500. Comparatively, Teva Pharmaceutical Industries has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500.

Summary

Teva Pharmaceutical Industries beats Veru on 10 of the 16 factors compared between the two stocks.

About Veru

Veru Inc., formerly The Female Health Company, is a therapeutics company focused on developing and commercializing pharmaceuticals and devices in men’s and women’s health and oncology. The Company is engaged in the development, manufacture and marketing of consumer healthcare products. The Company has three divisions: Pharmaceutical and Devices, Consumer Health Products and Public Sector. For men, product and product candidates are in the areas of benign prostatic hyperplasia, male infertility, amelioration of side effects of hormonal prostate cancer therapies, prostate cancer, gout and sexual dysfunction. Women’s Health has product candidates for female sexual health, and advanced breast and ovarian cancers. It manufactures, markets and sells the FC2 Female Condom. FC2 provides dual protection against unintended pregnancy and sexually transmitted infections (STIs), including human immunodeficiency virus/acquired immune deficiency syndrome (HIV/AIDS).

About Teva Pharmaceutical Industries

Teva Pharmaceutical Industries Limited is a pharmaceutical company. The Company is engaged in developing, producing and marketing generic medicines and a portfolio of specialty medicines. The Company operates through two segments: Generic medicines and Specialty medicines. The Company develops, manufactures and sells generic medicines in a range of dosage forms, including tablets, capsules, injectables, inhalants, liquids, ointments and creams. Its specialty medicines business focuses on delivering a range of solutions to patients and providers through medicines, devices and services in various regions and markets around the world. Its specialty medicines business includes its core therapeutic areas of central nervous system (CNS) and respiratory medicines with a focus on asthma and chronic obstructive pulmonary disease. It also has specialty products in oncology, women’s health and selected other areas.

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