Critical Survey: CASI Pharmaceuticals (NASDAQ:CASI) versus Theravance Biopharma (NASDAQ:TBPH)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CASI Pharmaceuticals	-183.93%	N/A	-131.54%
Theravance Biopharma	51.58%	-0.77%	-0.46%

Volatility and Risk

CASI Pharmaceuticals has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500. Comparatively, Theravance Biopharma has a beta of 0.25, indicating that its share price is 75% less volatile than the S&P 500.

Insider and Institutional Ownership

22.2% of CASI Pharmaceuticals shares are owned by institutional investors. Comparatively, 99.1% of Theravance Biopharma shares are owned by institutional investors. 21.2% of CASI Pharmaceuticals shares are owned by insiders. Comparatively, 7.6% of Theravance Biopharma shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for CASI Pharmaceuticals and Theravance Biopharma, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CASI Pharmaceuticals	1	0	0	0	1.00
Theravance Biopharma	0	8	0	0	2.00

Theravance Biopharma has a consensus target price of $19.40, suggesting a potential upside of 13.92%. Given Theravance Biopharma’s stronger consensus rating and higher probable upside, analysts plainly believe Theravance Biopharma is more favorable than CASI Pharmaceuticals.

Earnings and Valuation

This table compares CASI Pharmaceuticals and Theravance Biopharma”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CASI Pharmaceuticals	$26.85 million	0.10	-$39.26 million	($3.01)	-0.07
Theravance Biopharma	$104.31 million	8.48	$105.89 million	$1.01	16.86

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

Summary

Theravance Biopharma beats CASI Pharmaceuticals on 10 of the 13 factors compared between the two stocks.

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.

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.