Tetraphase Pharmaceuticals (NASDAQ: TTPH) and Teva Pharmaceutical Industries (NYSE:TEVA) are both healthcare companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, profitability, institutional ownership and earnings.
Volatility & Risk
Tetraphase Pharmaceuticals has a beta of 2.51, indicating that its stock price is 151% more volatile than the S&P 500. Comparatively, Teva Pharmaceutical Industries has a beta of 0.55, indicating that its stock price is 45% less volatile than the S&P 500.
Teva Pharmaceutical Industries pays an annual dividend of $0.72 per share and has a dividend yield of 4.8%. Tetraphase Pharmaceuticals does not pay a dividend. Teva Pharmaceutical Industries pays out -12.3% of its earnings in the form of a dividend.
This is a summary of current ratings for Tetraphase Pharmaceuticals and Teva Pharmaceutical Industries, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Teva Pharmaceutical Industries||5||15||6||0||2.04|
Tetraphase Pharmaceuticals presently has a consensus price target of $17.00, suggesting a potential upside of 191.10%. Teva Pharmaceutical Industries has a consensus price target of $21.22, suggesting a potential upside of 41.46%. Given Tetraphase Pharmaceuticals’ stronger consensus rating and higher possible upside, research analysts clearly believe Tetraphase Pharmaceuticals is more favorable than Teva Pharmaceutical Industries.
Earnings and Valuation
This table compares Tetraphase Pharmaceuticals 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|
|Tetraphase Pharmaceuticals||$5.14 million||58.42||-$77.48 million||($2.87)||-2.03|
|Teva Pharmaceutical Industries||$21.90 billion||0.70||$329.00 million||($5.87)||-2.56|
Teva Pharmaceutical Industries has higher revenue and earnings than Tetraphase Pharmaceuticals. Teva Pharmaceutical Industries is trading at a lower price-to-earnings ratio than Tetraphase Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
This table compares Tetraphase Pharmaceuticals and Teva Pharmaceutical Industries’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Teva Pharmaceutical Industries||-24.35%||15.70%||5.12%|
Institutional & Insider Ownership
58.2% of Tetraphase Pharmaceuticals shares are owned by institutional investors. Comparatively, 52.1% of Teva Pharmaceutical Industries shares are owned by institutional investors. 5.5% of Tetraphase Pharmaceuticals shares are owned by company insiders. Comparatively, 7.1% of Teva Pharmaceutical Industries shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Teva Pharmaceutical Industries beats Tetraphase Pharmaceuticals on 9 of the 15 factors compared between the two stocks.
About Tetraphase Pharmaceuticals
Tetraphase Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company. The Company uses its chemistry technology to create antibiotics for multidrug-resistant infections. The Company is developing its lead product candidate, eravacycline, a fully synthetic tetracycline derivative, as a spectrum intravenous (IV) and oral antibiotic for use as a first-line empiric monotherapy for the treatment of multidrug-resistant infections, including multidrug-resistant gram-negative infections. The Company also develops TP-6076 for multidrug-resistant gram-negative infections. Eravacycline is a fluorocycline antibiotic. The Company is conducting a global Phase III clinical program for eravacycline called Investigating Gram-Negative Infections Treated with Eravacycline (IGNITE). TP-271 is a fully synthetic fluorocycline being developed for respiratory disease caused by bacterial biothreat pathogens in healthy volunteers.
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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