Sinovac Biotech (NASDAQ: SVA) and Strongbridge Biopharma PLC (NASDAQ:SBBP) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, valuation, profitabiliy, analyst recommendations, dividends, earnings and institutional ownership.

Volatility & Risk

Sinovac Biotech has a beta of 0.04, meaning that its stock price is 96% less volatile than the S&P 500. Comparatively, Strongbridge Biopharma PLC has a beta of 2.62, meaning that its stock price is 162% more volatile than the S&P 500.

Profitability

This table compares Sinovac Biotech and Strongbridge Biopharma PLC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sinovac Biotech N/A N/A N/A
Strongbridge Biopharma PLC N/A -83.83% -34.77%

Earnings & Valuation

This table compares Sinovac Biotech and Strongbridge Biopharma PLC’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Sinovac Biotech $64.02 million 6.07 -$837,000.00 ($0.08) -85.24
Strongbridge Biopharma PLC $1.53 million 152.43 -$39.43 million ($2.78) -2.37

Sinovac Biotech has higher revenue and earnings than Strongbridge Biopharma PLC. Sinovac Biotech is trading at a lower price-to-earnings ratio than Strongbridge Biopharma PLC, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and price targets for Sinovac Biotech and Strongbridge Biopharma PLC, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sinovac Biotech 0 0 0 0 N/A
Strongbridge Biopharma PLC 0 0 3 0 3.00

Strongbridge Biopharma PLC has a consensus price target of $13.33, indicating a potential upside of 102.02%. Given Strongbridge Biopharma PLC’s higher probable upside, analysts clearly believe Strongbridge Biopharma PLC is more favorable than Sinovac Biotech.

Insider and Institutional Ownership

37.9% of Sinovac Biotech shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Sinovac Biotech beats Strongbridge Biopharma PLC on 6 of the 10 factors compared between the two stocks.

About Sinovac Biotech

Sinovac Biotech Ltd. (Sinovac) is a holding company. The Company is a biopharmaceutical company that focuses on the research, development, manufacturing and commercialization of vaccines that protect against human infectious diseases, including hepatitis A, hepatitis B, seasonal influenza, Haemagglutinase5 Neuraminidase1 (H5N1) and Influenza A (H1N1) pandemic influenza and mumps. The Company’s pipeline consists of vaccine candidates in the clinical and pre-clinical development Phases in China. The Company is engaged in the sales, marketing, manufacturing and development of vaccines for infectious disease. The Company develops various products, including Healive, Bilive, Anflu, Panflu Whole Viron Pandemic Influenza Vaccine, Split Viron Pandemic Influenza Vaccine, Panflu.1, RabEnd, Mumps Vaccine, Enterovirus 71 (EV71) Vaccine, Pneumococcal Polysaccharide Vaccine, Pneumococcal Conjugate Vaccine, Rubella Vaccine, Varicella Vaccine and Sabin Inactivated Polio Vaccine.

About Strongbridge Biopharma PLC

Strongbridge Biopharma plc is a global commercial-stage biopharmaceutical company. The Company is focused on the development and commercialization of therapies for a range of diseases. The Company’s commercial product, KEVEYIS (dichlorphenamide), is indicated for the treatment of hyperkalemic, hypokalemic and related variants of primary periodic paralysis. The United States Food and Drug Administration (FDA) has granted orphan drug designation for KEVEYIS. The Company has a clinical-stage pipeline of therapies for endocrine diseases. The Company’s lead compounds include COR-003 (levoketoconazole), a cortisol synthesis inhibitor, and COR-005 (veldoreotide), a somatostatin analog (SSA). The Company is studying COR-003 for the treatment of endogenous Cushing’s syndrome. It is investigating COR-005 for the treatment of acromegaly. Both COR-003 and COR-005 have received orphan designation from the FDA and the European Medicines Agency (EMA).

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