Comparing Theravance Biopharma (NASDAQ:TBPH) and Redhill Biopharma (NASDAQ:RDHL)

Redhill Biopharma (NASDAQ:RDHL) and Theravance Biopharma (NASDAQ:TBPH) are both small-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, profitability, valuation, risk and earnings.

Risk & Volatility

Redhill Biopharma has a beta of 4.93, suggesting that its share price is 393% more volatile than the S&P 500. Comparatively, Theravance Biopharma has a beta of 0.17, suggesting that its share price is 83% less volatile than the S&P 500.

Insider & Institutional Ownership

7.2% of Redhill Biopharma shares are held by institutional investors. Comparatively, 99.1% of Theravance Biopharma shares are held by institutional investors. 6.8% of Redhill Biopharma shares are held by insiders. Comparatively, 6.9% of Theravance Biopharma shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Redhill Biopharma and Theravance Biopharma”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Redhill Biopharma	$9.55 million	0.44	-$8.27 million	$1,046.75	0.00
Theravance Biopharma	$107.46 million	7.83	$105.89 million	$2.03	8.05

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

Profitability

This table compares Redhill Biopharma and Theravance Biopharma’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Redhill Biopharma	N/A	N/A	N/A
Theravance Biopharma	98.54%	16.76%	9.23%

Analyst Recommendations

This is a summary of current recommendations and price targets for Redhill Biopharma and Theravance Biopharma, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Redhill Biopharma	1	0	0	0	1.00
Theravance Biopharma	0	4	2	2	2.75

Theravance Biopharma has a consensus price target of $21.83, suggesting a potential upside of 33.54%. Given Theravance Biopharma’s stronger consensus rating and higher probable upside, analysts clearly believe Theravance Biopharma is more favorable than Redhill Biopharma.

Summary

Theravance Biopharma beats Redhill Biopharma on 13 of the 15 factors compared between the two stocks.

About Redhill Biopharma

RedHill Biopharma Ltd., a specialty biopharmaceutical company, primarily focuses on gastrointestinal and infectious diseases. The company develops and commercializes Talicia for the treatment of H. pylori infection in adults; and Aemcolo for the treatment of travelers' diarrhea in adults. Its pipeline consists of five therapeutic candidates, which are in clinical development include opaganib for treating patients hospitalized with SARS-CoV-2 severe COVID-19 pneumonia, advanced unresectable cholangiocarcinoma, prostate cancer, and nuclear radiation protection; RHB-107 (upamostat) for treating outpatients infected with SARS-CoV-2 (COVID-19 disease) and advanced unresectable cholangiocarcinoma; RHB-104 for Crohn's disease; RHB-102 (Bekinda) for the treatment of acute gastroenteritis and gastritis, irritable bowel syndrome with diarrhea, and oncology support anti-emetic; and RHB-204 for pulmonary nontuberculous mycobacteria infections caused by mycobacterium avium complex. The company was incorporated in 2009 and is headquartered in Tel Aviv, Israel.

About Theravance Biopharma

Theravance Biopharma, Inc. is a diversified biopharmaceutical company primarily focused on the discovery, development and commercialization of organ-selective medicines. Its purpose is to pioneer a new generation of small molecule drugs designed to better meet patient needs. Its research is focused in the areas of inflammation and immunology.
In pursuit of its purpose, Theravance Biopharma applies insights and innovation at each stage of its business and utilizes its internal capabilities and those of partners around the world. The Company applies organ-selective expertise to target disease biologically, to discover and develop medicines that may expand the therapeutic index with the goal of maximizing efficacy and limiting systemic side effects. These efforts leverage years of experience in developing lung-selective medicines to treat respiratory disease, including FDA-approved YUPELRI® (revefenacin) inhalation solution indicated for the maintenance treatment of patients with chronic obstructive pulmonary disease (COPD). Its pipeline of internally discovered programs is targeted to address significant patient needs.
Theravance Biopharma has an economic interest in potential future payments from Glaxo Group Limited or one of its affiliates (GSK) pursuant to its agreements with Innoviva, Inc. relating to certain programs, including TRELEGY.
For more information, please visit www.theravance.com.