Analyzing Shire (SHPG) & Collegium Pharmaceutical (COLL)
Shire (NASDAQ: SHPG) and Collegium Pharmaceutical (NASDAQ:COLL) are both healthcare companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, valuation, analyst recommendations, risk, institutional ownership and dividends.
Institutional and Insider Ownership
20.7% of Shire shares are held by institutional investors. Comparatively, 82.4% of Collegium Pharmaceutical shares are held by institutional investors. 2.0% of Shire shares are held by company insiders. Comparatively, 25.8% of Collegium Pharmaceutical shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This table compares Shire and Collegium Pharmaceutical’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Shire and Collegium Pharmaceutical’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Shire||$11.40 billion||3.49||$327.40 million||$5.31||24.91|
|Collegium Pharmaceutical||$1.71 million||449.75||-$94.17 million||($2.97)||-7.95|
Shire has higher revenue and earnings than Collegium Pharmaceutical. Collegium Pharmaceutical is trading at a lower price-to-earnings ratio than Shire, indicating that it is currently the more affordable of the two stocks.
Shire pays an annual dividend of $0.92 per share and has a dividend yield of 0.7%. Collegium Pharmaceutical does not pay a dividend. Shire pays out 17.3% of its earnings in the form of a dividend.
This is a breakdown of recent ratings for Shire and Collegium Pharmaceutical, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Shire currently has a consensus price target of $212.50, suggesting a potential upside of 60.66%. Collegium Pharmaceutical has a consensus price target of $29.40, suggesting a potential upside of 24.47%. Given Shire’s higher possible upside, equities research analysts plainly believe Shire is more favorable than Collegium Pharmaceutical.
Shire beats Collegium Pharmaceutical on 10 of the 15 factors compared between the two stocks.
Shire plc is a biotech company focused on serving people with rare diseases and other specialized conditions. The Company’s segment is engaged in research, development, licensing, manufacturing, marketing, distribution and sale of specialist medicines. It focuses its development resources on projects in various therapeutic areas (TAs), including Neuroscience, Ophthalmology, Hematology, Oncology, Immunology, Gastrointestinal (GI)/Metabolic/Endocrinology Diseases. Its Hematology products include ADVATE (Antihemophilic Factor (Recombinant)), ADYNOVATE/ADYNOVI (Antihemophilic Factor (Recombinant), PEGylated)), RIXUBIS (Coagulation Factor IX (Recombinant)), VONVENDI (von Willebrand factor (Recombinant)) and FEIBA (Anti-Inhibitor Coagulant Complex). Its Genetic Diseases products include CINRYZE (C1 esterase inhibitor (human)), FIRAZYR (icatibant), ELAPRASE (idursulfase), REPLAGAL (agalsidase alfa) and VPRIV (velaglucerase alfa).
About Collegium Pharmaceutical
Collegium Pharmaceutical, Inc. is a specialty pharmaceutical company. The Company is engaged in developing and commercializing abuse-deterrent products that incorporate its DETERx platform technology for the treatment of chronic pain and other diseases. Its products include Xtampza ER and ONSOLIS. Its DETERx platform provides extended-release drug delivery, while safeguarding against common methods of abuse and tampering, including crushing, chewing, and heating and injecting. Xtampza ER is designed to provide adequate pain control while maintaining its extended-release drug release profile after being subjected to common methods of abuse and accidental misuse. ONSOLIS is a Transmucosal Immediate-Release Fentanyl (TIRF) film indicated for the management of breakthrough pain in cancer patients (BTPc), 18 years of age and older, who are already receiving and who are tolerant to opioid therapy for their underlying persistent cancer pain.
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