Head-To-Head Review: Minerva Neurosciences (NASDAQ:NERV) & Chugai Pharmaceutical (OTCMKTS:CHGCY)

Minerva Neurosciences (NASDAQ:NERV) and Chugai Pharmaceutical (OTCMKTS:CHGCY) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Earnings and Valuation

This table compares Minerva Neurosciences and Chugai Pharmaceutical”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Minerva Neurosciences	N/A	N/A	-$293.42 million	($29.16)	-0.15
Chugai Pharmaceutical	$8.41 billion	9.08	$2.91 billion	$0.90	25.78

Chugai Pharmaceutical has higher revenue and earnings than Minerva Neurosciences. Minerva Neurosciences is trading at a lower price-to-earnings ratio than Chugai Pharmaceutical, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

34.6% of Minerva Neurosciences shares are held by institutional investors. Comparatively, 0.0% of Chugai Pharmaceutical shares are held by institutional investors. 1.7% of Minerva Neurosciences shares are held 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.

Risk & Volatility

Minerva Neurosciences has a beta of -0.18, suggesting that its stock price is 118% less volatile than the S&P 500. Comparatively, Chugai Pharmaceutical has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for Minerva Neurosciences and Chugai Pharmaceutical, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Minerva Neurosciences	1	1	1	0	2.00
Chugai Pharmaceutical	0	1	1	2	3.25

Minerva Neurosciences presently has a consensus target price of $10.50, suggesting a potential upside of 142.77%. Given Minerva Neurosciences’ higher probable upside, research analysts plainly believe Minerva Neurosciences is more favorable than Chugai Pharmaceutical.

Profitability

This table compares Minerva Neurosciences and Chugai Pharmaceutical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Minerva Neurosciences	N/A	N/A	-32.63%
Chugai Pharmaceutical	34.98%	22.90%	19.45%

Summary

Chugai Pharmaceutical beats Minerva Neurosciences on 10 of the 13 factors compared between the two stocks.

About Minerva Neurosciences

Minerva Neurosciences, Inc., a clinical-stage biopharmaceutical company, focuses on the development and commercialization of product candidates for the treatment of central nervous system diseases. Its lead product candidate is roluperidone (MIN-101) for the treatment of negative symptoms in patients with schizophrenia, currently submitted an New Drug Application (NDA); and MIN-301, a soluble recombinant form of the neuregulin-1b1 protein for the treatment of Parkinson's disease and other neurodegenerative disorders. The company has a license agreement with Mitsubishi Tanabe Pharma Corporation to develop, sell, and import roluperidone globally excluding Asia. Minerva Neurosciences, Inc. was incorporated in 2007 and is based in Burlington, Massachusetts.

About Chugai Pharmaceutical

Chugai Pharmaceutical Co., Ltd., together with its subsidiaries, engages in the research, development, manufacture, sale, importation, and exportation of pharmaceuticals in Japan and internationally. The company’s products for oncology primarily include Avastin, FoundationOne, Polivy, Rozlytrek, Tecentriq, Perjeta, Alecensa, Herceptin, Kadcyla, Rituxan, and Gazyva; Edirol, an Osteoporosis agent; Mircera, an erythropoiesis agent; Oxarol, an agent for secondary hyperparathyroidism; and other diseases comprise Hemlibra, CellCept, Bonviva, Tamiflu, Evrysdi, Ronapreve, Vabysmo, and Enspryng. It has various development product candidates in the areas of oncology, immunology, neuroscience, hematology, ophthalmology, and other diseases. Chugai Pharmaceutical Co., Ltd. has strategic alliances and collaboration with Roche Group. The company was founded in 1925 and is headquartered in Chuo, Japan. Chugai Pharmaceutical Co., Ltd. operates as a subsidiary of Roche Holding Ltd.