Teva Pharmaceutical Industries (NYSE:TEVA – Get Free Report) and Verrica Pharmaceuticals (NASDAQ:VRCA – Get Free Report) are both healthcare companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, risk, valuation, institutional ownership, profitability and dividends.
Profitability
This table compares Teva Pharmaceutical Industries and Verrica Pharmaceuticals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Teva Pharmaceutical Industries | 4.08% | 32.64% | 6.34% |
| Verrica Pharmaceuticals | -102.84% | -407.11% | -70.17% |
Insider & Institutional Ownership
54.0% of Teva Pharmaceutical Industries shares are owned by institutional investors. Comparatively, 42.5% of Verrica Pharmaceuticals shares are owned by institutional investors. 0.5% of Teva Pharmaceutical Industries shares are owned by company insiders. Comparatively, 52.9% of Verrica Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Teva Pharmaceutical Industries | 0 | 1 | 9 | 0 | 2.90 |
| Verrica Pharmaceuticals | 1 | 1 | 3 | 0 | 2.40 |
Teva Pharmaceutical Industries presently has a consensus price target of $42.89, indicating a potential upside of 17.96%. Verrica Pharmaceuticals has a consensus price target of $12.67, indicating a potential upside of 138.99%. Given Verrica Pharmaceuticals’ higher probable upside, analysts clearly believe Verrica Pharmaceuticals is more favorable than Teva Pharmaceutical Industries.
Earnings & Valuation
This table compares Teva Pharmaceutical Industries and Verrica Pharmaceuticals”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Teva Pharmaceutical Industries | $17.26 billion | 2.46 | $1.41 billion | $0.60 | 60.60 |
| Verrica Pharmaceuticals | $35.58 million | 2.56 | -$17.89 million | ($1.67) | -3.17 |
Teva Pharmaceutical Industries has higher revenue and earnings than Verrica Pharmaceuticals. Verrica Pharmaceuticals 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.
Risk and Volatility
Teva Pharmaceutical Industries has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500. Comparatively, Verrica Pharmaceuticals has a beta of 1.49, meaning that its stock price is 49% more volatile than the S&P 500.
Summary
Teva Pharmaceutical Industries beats Verrica Pharmaceuticals on 10 of the 14 factors compared between the two stocks.
About Teva Pharmaceutical Industries
Teva Pharmaceutical Industries Limited develops, manufactures, markets, and distributes generic medicines, specialty medicines, and biopharmaceutical products in North America, Europe, Israel, and internationally. It offers generic medicines in various dosage forms, such as tablets, capsules, injectables, inhalants, liquids, transdermal patches, ointments, and creams; sterile products, hormones, high-potency drugs, and cytotoxic substances in parenteral and solid dosage forms; and generic products with medical devices and combination products. The company focuses on the central nervous system (CNS), respiratory, and oncology areas. It provides active pharmaceutical ingredients, as well as contract manufacturing services; and operates an out-licensing platform that offers a portfolio of products to other pharmaceutical companies. The company also offers BENDEKA and TREANDA injections for the treatment of chronic lymphocytic leukemia and indolent b-cell non-hodgkin’s lymphoma; GRANIX; TRISENOX; LONQUEX; and TEVAGRASTIM/RATIOGRASTIM. In addition, it provides COPAXONE for the treatment of relapsing forms of multiple sclerosis; AJOVY for the preventive treatment of migraine in adults; AUSTEDO for the treatment of neurodegenerative and movement disorders associated with Huntington’s disease and tardive dyskinesia; UZEDY for the treatment of schizophrenia; ProAir RespiClick inhalation powder; QVAR for treatment for asthma; BRALTUS, a long-acting muscarinic antagonist; CINQAIR/CINQAERO injection; DuoResp Spiromax, an inhaled corticosteroid and long-acting beta-agonist bronchodilator; and AirDuo RespiClick fluticasone propionate and salmeterol inhalation powder. The company offers its OTC products under SUDOCREM, NasenDuo, DICLOX FORTE, OLFEN Max, and FLEGAMINA brand names. It has collaboration agreements with MedinCell; Sanofi; Alvotech; and Biolojic Design Ltd., as well as license agreement with MODAG GmbH. The company was founded in 1901 and is based in Tel Aviv, Israel.
About Verrica Pharmaceuticals
Verrica Pharmaceuticals Inc., a clinical-stage dermatology therapeutics company, develops medications for the treatment of skin diseases in the United States. Its product pipeline comprises YCANTH (VP-102), which is in phase III clinical trial for the treatment of common warts; and has completed phase II clinical trial for the treatment of external genital warts. The company also develops VP-315, an oncolytic peptide-based injectable therapy, which is in phase II clinical trial for the treatment of dermatology oncologic conditions which includes basal cell carcinoma; and VP-103, a cantharidin-based product candidate for the treatment of plantar warts and is in phase II clinical trial. In addition, it offers YCANTH for the treatment of molluscum contagiosum. The company has a collaboration and license agreement with Torii Pharmaceutical Co., Ltd. for the development and commercialization of its product candidates for the treatment of molluscum contagiosum and common warts in Japan, including VP-102; and a license agreement with Lytix Biopharma AS to develop and commercialize VP-315 for dermatological oncology indications, such as non-metastatic melanoma and non-metastatic merkel cell carcinoma. Verrica Pharmaceuticals Inc. was incorporated in 2013 and is headquartered in West Chester, Pennsylvania.
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