Prestige Brands (PBH) vs. CymaBay Therapeutics (CBAY) Critical Comparison

Prestige Brands (NASDAQ: CBAY) and CymaBay Therapeutics (NASDAQ:CBAY) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, dividends, earnings and profitability.

Analyst Ratings

This is a breakdown of recent ratings for Prestige Brands and CymaBay Therapeutics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Prestige Brands 0 2 4 0 2.67
CymaBay Therapeutics 0 0 9 0 3.00

Prestige Brands currently has a consensus price target of $71.40, suggesting a potential upside of 85.02%. CymaBay Therapeutics has a consensus price target of $21.88, suggesting a potential upside of 72.24%. Given Prestige Brands’ higher possible upside, analysts plainly believe Prestige Brands is more favorable than CymaBay Therapeutics.

Valuation & Earnings

This table compares Prestige Brands and CymaBay Therapeutics’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Prestige Brands $1.04 billion 1.92 $339.57 million $2.58 14.96
CymaBay Therapeutics $10.00 million 74.99 -$27.55 million ($0.79) -16.08

Prestige Brands has higher revenue and earnings than CymaBay Therapeutics. CymaBay Therapeutics is trading at a lower price-to-earnings ratio than Prestige Brands, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

95.4% of CymaBay Therapeutics shares are held by institutional investors. 1.1% of Prestige Brands shares are held by insiders. Comparatively, 4.5% of CymaBay Therapeutics shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Prestige Brands has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500. Comparatively, CymaBay Therapeutics has a beta of 1.9, meaning that its share price is 90% more volatile than the S&P 500.

Profitability

This table compares Prestige Brands and CymaBay Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Prestige Brands 32.76% 12.45% 3.62%
CymaBay Therapeutics N/A -32.81% -29.02%

Summary

Prestige Brands beats CymaBay Therapeutics on 8 of the 14 factors compared between the two stocks.

Prestige Brands Company Profile

Prestige Brands Holdings, Inc., together with its subsidiaries, develops, manufactures, markets, distributes, and sells over-the-counter (OTC) healthcare and household cleaning products in North America, Australia, and internationally. It operates in three segments: North American OTC Healthcare, International OTC Healthcare, and Household Cleaning. The company's OTC healthcare products include BC/Goody's analgesic powders, Beano for gas prevention, Boudreaux's Butt Paste baby ointments, Chloraseptic sore throat liquids/lozenges, Clear Eyes for eye allergy/redness relief, Compound W for wart removal, Debrox for ear wax removal, DenTek PEG oral care, Dramamine for motion sickness relief, and Efferdent denture cleanser tablets. Its OTC healthcare products portfolio also comprises Fess nasal saline spray, Fleet adult enemas/suppositories, Gaviscon upset stomach remedies, Hydralyte for oral rehydration, Luden's cough drops, Monistat vaginal anti-fungal, Nix lice/parasite treatments, Pedia-Lax pediatric laxatives, Summer's Eve for feminine hygiene, Little Remedies pediatric OTC products, and The Doctor's NightGuard dental protectors. In addition, the company offers household cleaning products, such as abrasive tub and tile cleaners under the Comet name, as well as Chore Boy, and Spic and Span names. It serves mass merchandisers; and drug, food, dollar, convenience, and club stores. The company was founded in 1996 and is headquartered in Tarrytown, New York.

CymaBay Therapeutics Company Profile

CymaBay Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on developing and providing therapies to treat liver and other chronic diseases. Its lead product candidate is seladelpar, a selective agonist of peroxisome proliferator-activated receptor delta, which has completed Phase II clinical study for the treatment of primary biliary cholangitis, as well as patients with nonalcoholic steatohepatitis. The company also develops arhalofenate, which has completed five Phase II clinical trials for the treatment of patients with gout; and MBX-2982, an oral G-protein coupled receptor agonist that has completed one Phase II clinical trial for therapeutic indications. It has licensing agreement with Kowa Pharmaceuticals America, Inc. for the development and commercialization of arhalofenate in the United States; and Janssen Pharmaceuticals, Inc. to develop and discover undisclosed metabolic disease target agonists for the treatment of type II diabetes and other disorders, as well as a license and development agreement with DiaTex, Inc. to develop and commercialize therapeutic products comrprising halofenate and its enantiomers, derivatives, and analogs for the treatment of diseases. The company was formerly known as Metabolex, Inc. CymaBay Therapeutics, Inc. was incorporated in 1988 and is headquartered in Newark, California.

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