Critical Analysis: Theravance Biopharma (NASDAQ:TBPH) versus Indivior (NASDAQ:INDV)

Indivior (NASDAQ:INDV – Get Free Report) and Theravance Biopharma (NASDAQ:TBPH – Get Free Report) are both healthcare companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.

Institutional & Insider Ownership

60.3% of Indivior shares are owned by institutional investors. Comparatively, 99.1% of Theravance Biopharma shares are owned by institutional investors. 0.7% of Indivior shares are owned by insiders. Comparatively, 7.6% of Theravance Biopharma shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Indivior 0 1 4 1 3.00
Theravance Biopharma 0 7 0 0 2.00

Indivior currently has a consensus target price of $46.40, indicating a potential upside of 26.63%. Theravance Biopharma has a consensus target price of $19.00, indicating a potential upside of 11.57%. Given Indivior’s stronger consensus rating and higher probable upside, analysts clearly believe Indivior is more favorable than Theravance Biopharma.

Earnings and Valuation

This table compares Indivior and Theravance Biopharma”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Indivior $1.24 billion 3.49 $210.00 million $3.58 10.24
Theravance Biopharma $104.31 million 8.48 $105.89 million $1.01 16.86

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

Volatility and Risk

Indivior has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500. Comparatively, Theravance Biopharma has a beta of 0.25, suggesting that its share price is 75% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Indivior 32.75% -418.04% 42.96%
Theravance Biopharma 51.58% -0.77% -0.46%

Summary

Indivior beats Theravance Biopharma on 9 of the 15 factors compared between the two stocks.

About Indivior

(Get Free Report)

Indivior PLC, together with its subsidiaries, engages in the development, manufacture, and sale of buprenorphine-based prescription drugs for the treatment of opioid dependence and co-occurring disorders in the United States, the United Kingdom, and internationally. The company develops medicines to treat substance use disorders, serious mental illnesses, and opioid overdose. Its core marketed products include SUBLOCADE and SUBUTEX PRO buprenorphine extended-release monthly injections; SUBOXONE, a buprenorphine and naloxone sublingual film; SUBOXONE, a buprenorphine and naloxone sublingual tablet; and SUBUTEX, a buprenorphine sublingual tablet for the treatment of opioid use disorder. The company also offers OPVEE nasal spray for opioid overdose reversal; and PERSERIS extended-release injectable suspension for the treatment of schizophrenia in adults. In addition, it is developing INDV-2000, a selective orexin-1 receptor antagonist that completed phase 1 clinical trial for the treatment of opioid use disorder (OUD); INDV-1000, a selective GABAb positive allosteric modulator, which is in pre-clinical development phase for the treatment of alcohol use disorder in collaboration with ADDEX therapeutics; INDV-6001, a buprenorphine-based long-acting injectable for the treatment of OUD in collaboration with Alar Pharmaceuticals Inc.; and CT-102, a digital therapeutic for the treatment of OUD in collaboration with Click Therapeutics. Further, the company is developing INDV-5004, a drinabant injection to treat acute cannabinoid overdose. It has a strategic partnership with Aelis Farma to develop AEF0117, a synthetic CB1 specific signaling inhibitor that is in phase 2B clinical trial for the treatment of cannabis use disorder. The company was incorporated in 2014 and is headquartered in North Chesterfield, Virginia.

About Theravance Biopharma

(Get Free Report)

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.

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