Financial Analysis: Paratek Pharmaceuticals (NASDAQ:PRTK) vs. Bausch Health Companies (NASDAQ:BHC)

Paratek Pharmaceuticals (NASDAQ:PRTK) and Bausch Health Companies (NYSE:BHC) are both medical companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.

Earnings and Valuation

This table compares Paratek Pharmaceuticals and Bausch Health Companies’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Paratek Pharmaceuticals $17.12 million 6.29 -$112.36 million ($3.57) -0.93
Bausch Health Companies $8.38 billion 0.97 -$4.15 billion $4.02 5.77

Paratek Pharmaceuticals has higher earnings, but lower revenue than Bausch Health Companies. Paratek Pharmaceuticals is trading at a lower price-to-earnings ratio than Bausch Health Companies, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Paratek Pharmaceuticals and Bausch Health Companies, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Paratek Pharmaceuticals 0 1 6 0 2.86
Bausch Health Companies 2 4 10 0 2.50

Paratek Pharmaceuticals presently has a consensus price target of $23.71, suggesting a potential upside of 614.29%. Bausch Health Companies has a consensus price target of $27.70, suggesting a potential upside of 19.50%. Given Paratek Pharmaceuticals’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Paratek Pharmaceuticals is more favorable than Bausch Health Companies.

Volatility and Risk

Paratek Pharmaceuticals has a beta of 1.75, suggesting that its share price is 75% more volatile than the S&P 500. Comparatively, Bausch Health Companies has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500.

Institutional and Insider Ownership

75.0% of Paratek Pharmaceuticals shares are owned by institutional investors. Comparatively, 53.7% of Bausch Health Companies shares are owned by institutional investors. 7.7% of Paratek Pharmaceuticals shares are owned by insiders. Comparatively, 11.9% of Bausch Health Companies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Paratek Pharmaceuticals and Bausch Health Companies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Paratek Pharmaceuticals -642.70% -232.61% -39.47%
Bausch Health Companies -19.27% 47.01% 4.37%

Summary

Bausch Health Companies beats Paratek Pharmaceuticals on 8 of the 14 factors compared between the two stocks.

About Paratek Pharmaceuticals

Paratek Pharmaceuticals, Inc., a commercial-stage biopharmaceutical company, focuses on the development and commercialization of therapeutics based upon biology and tetracycline chemistry in the United States. Its lead product candidates include omadacycline, an intravenous and oral antibiotic for use as a monotherapy antibiotic for acute bacterial skin and skin structure infections, community-acquired bacterial pneumonia, urinary tract infections, and other community-acquired bacterial infections; and Sarecycline, a tetracycline-derived compound designed for use in the treatment of acne and rosacea. The company has license and collaboration agreements with Zai Lab (Shanghai) Co., Ltd. and Allergan plc; license agreement with Tufts University to develop and commercialize products for the treatment or prevention of bacterial or microbial diseases, or medical conditions; and cooperative research and development agreement with the U.S. Army Medical Research Institute of Infectious Diseases to study omadacycline against pathogenic agents causing infectious diseases. Paratek Pharmaceuticals, Inc. was founded in 1996 and is headquartered in Boston, Massachusetts.

About Bausch Health Companies

Bausch Health Companies Inc. develops, manufactures, and markets a range of pharmaceutical, medical device, and over-the-counter (OTC) products primarily in the therapeutic areas of eye health, gastroenterology, and dermatology. The company operates through four segments: Bausch + Lomb/International, Salix, Ortho Dermatologics, and Diversified Products. The Bausch + Lomb/International segment offers products with a focus on the vision care, surgical, and consumer and ophthalmology Rx products in the United States; and Solta products, branded and generic pharmaceutical products, OTC products, and medical device products, and Bausch + Lomb products in Canada, Europe, Asia, Australia, Latin America, Africa, and the Middle East. The Salix segment provides gastroenterology products in the United States. The Ortho Dermatologics segment offers dermatological products in the United States; and Solta medical aesthetic devices internationally. The Diversified Products segment provides pharmaceutical products in the areas of neurology and other therapeutic classes, as well as generic and dentistry products in the United States. The company was formerly known as Valeant Pharmaceuticals International, Inc. and changed its name to Bausch Health Companies Inc. in July 2018. Bausch Health Companies Inc. was founded in 1983 and is headquartered in Laval, Canada.

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