Johnson & Johnson (NYSE:JNJ) versus CASI Pharmaceuticals (NASDAQ:CASI) Critical Review

Johnson & Johnson (NYSE:JNJ) and CASI Pharmaceuticals (NASDAQ:CASI) are both healthcare companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.

Profitability

This table compares Johnson & Johnson and CASI Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Johnson & Johnson	21.48%	32.42%	13.35%
CASI Pharmaceuticals	-183.93%	N/A	-131.54%

Analyst Ratings

This is a summary of recent ratings and price targets for Johnson & Johnson and CASI Pharmaceuticals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Johnson & Johnson	0	6	18	1	2.80
CASI Pharmaceuticals	1	0	0	0	1.00

Johnson & Johnson presently has a consensus target price of $272.83, suggesting a potential downside of 0.83%. Given Johnson & Johnson’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Johnson & Johnson is more favorable than CASI Pharmaceuticals.

Institutional and Insider Ownership

69.6% of Johnson & Johnson shares are owned by institutional investors. Comparatively, 22.2% of CASI Pharmaceuticals shares are owned by institutional investors. 0.2% of Johnson & Johnson shares are owned by insiders. Comparatively, 21.2% of CASI Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Johnson & Johnson and CASI Pharmaceuticals”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Johnson & Johnson	$97.93 billion	6.77	$26.80 billion	$8.63	31.88
CASI Pharmaceuticals	$26.85 million	0.10	-$39.26 million	($3.01)	-0.07

Johnson & Johnson has higher revenue and earnings than CASI Pharmaceuticals. CASI Pharmaceuticals is trading at a lower price-to-earnings ratio than Johnson & Johnson, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Johnson & Johnson has a beta of 0.24, suggesting that its share price is 76% less volatile than the S&P 500. Comparatively, CASI Pharmaceuticals has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500.

Summary

Johnson & Johnson beats CASI Pharmaceuticals on 13 of the 15 factors compared between the two stocks.

About Johnson & Johnson

Johnson & Johnson is a holding company, which engages in the research, development, manufacture, and sale of products in the healthcare field. It operates through the Innovative Medicine and MedTech segments. The Innovative Medicine segment focuses on immunology, infectious diseases, neuroscience, oncology, cardiovascular and metabolism, and pulmonary hypertension. The MedTech segment includes a portfolio of products used in the interventional solutions, orthopaedics, surgery, and vision categories. The company was founded by Robert Wood Johnson I, James Wood Johnson, and Edward Mead Johnson Sr. in 1887 and is headquartered in New Brunswick, NJ.

About CASI Pharmaceuticals

CASI Pharmaceuticals, Inc., a biopharmaceutical company, develops and commercializes therapeutics and pharmaceutical products in the People's Republic of China, the United States, and internationally. It offers EVOMELA, an intravenous formulation of melphalan for use as a conditioning treatment prior to stem cell transplantation, and as a palliative treatment for patients with multiple myeloma. The company's other hematology/oncology assets in pipeline include CNCT 19, an autologous CD19 CAR-T investigative product; BI-1206, novel anti-Fc?RIIB antibody, for the treatment of solid tumors and relapsed/refractory non-hodgkin lymphoma; CB-5339, a novel VCP/p97 inhibitor that focuses on valosin-containing protein (VCP)/p97 as a novel target in protein homeostasis, DNA damage response, and other cellular stress pathways for therapeutic use in the treatment of patients with various malignancies; CID-103, a human IgG1 anti-CD38 monoclonal antibody; and Thiotepa, a chemotherapeutic agent, which has various indications, including use as a conditioning treatment for use prior to certain allogeneic haemopoietic stem cell transplants. The company has licensing agreements with Juventas Cell Therapy Ltd.; BioInvent International AB; Black Belt Therapeutics Limited; Cleave Therapeutics, Inc.; and Acrotech Biopharma L.L.C. to develop and commercialize its commercial product EVOMELA. It also has distribution agreements with China Resources Pharmaceutical Commercial Group International Trading Co., Ltd; Pharmathen Global BV; and Riemser Pharma GmbH. CASI Pharmaceuticals, Inc. was incorporated in 1991 and is based in Beijing, the People's Republic of China.