Innoviva (NASDAQ:INVA – Get Free Report) and Teva Pharmaceutical Industries (NYSE:TEVA – Get Free Report) are both healthcare companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, risk, earnings, dividends and analyst recommendations.
Insider & Institutional Ownership
99.1% of Innoviva shares are owned by institutional investors. Comparatively, 54.0% of Teva Pharmaceutical Industries shares are owned by institutional investors. 2.0% of Innoviva shares are owned by insiders. Comparatively, 0.5% of Teva Pharmaceutical Industries shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Risk & Volatility
Innoviva has a beta of 0.38, indicating that its stock price is 62% less volatile than the S&P 500. Comparatively, Teva Pharmaceutical Industries has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Innoviva and Teva Pharmaceutical Industries, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Innoviva | 0 | 1 | 5 | 0 | 2.83 |
| Teva Pharmaceutical Industries | 1 | 1 | 13 | 0 | 2.80 |
Innoviva currently has a consensus price target of $39.00, suggesting a potential upside of 105.59%. Teva Pharmaceutical Industries has a consensus price target of $48.15, suggesting a potential upside of 10.63%. Given Innoviva’s stronger consensus rating and higher probable upside, equities analysts clearly believe Innoviva is more favorable than Teva Pharmaceutical Industries.
Profitability
This table compares Innoviva and Teva Pharmaceutical Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Innoviva | 44.13% | 22.91% | 16.67% |
| Teva Pharmaceutical Industries | 2.94% | 33.20% | 6.59% |
Valuation & Earnings
This table compares Innoviva and Teva Pharmaceutical Industries”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Innoviva | $411.33 million | 3.33 | $271.17 million | $1.99 | 9.53 |
| Teva Pharmaceutical Industries | $17.26 billion | 2.94 | $1.41 billion | $0.43 | 101.22 |
Teva Pharmaceutical Industries has higher revenue and earnings than Innoviva. Innoviva is trading at a lower price-to-earnings ratio than Teva Pharmaceutical Industries, indicating that it is currently the more affordable of the two stocks.
Summary
Innoviva beats Teva Pharmaceutical Industries on 8 of the 14 factors compared between the two stocks.
About Innoviva
Innoviva, Inc. is a biopharmaceutical company with two main areas of activity: royalty interests in respiratory medicines developed with GSK and the development and commercialization of specialty medicines. Its respiratory-related royalties include products such as Trelegy Ellipta, Anoro Ellipta and Breo Ellipta, which are used to treat chronic obstructive pulmonary disease and asthma and are marketed by GSK. Through its specialty therapeutics operations, Innoviva focuses on medicines for serious infections and other acute-care conditions.
About Teva Pharmaceutical Industries
Teva Pharmaceutical Industries is a global pharmaceutical company that develops, manufactures and markets generic medicines, specialty medicines and biosimilars. Its portfolio spans treatments for conditions including neurological disorders, respiratory diseases and cancer, alongside a broad range of generic medicines across therapeutic areas. Founded in Jerusalem in 1901, Teva has grown from a regional pharmaceutical business into an international company. It serves patients and healthcare providers in markets around the world, including North America, Europe and other regions.
Receive News & Ratings for Innoviva Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Innoviva and related companies with MarketBeat.com's FREE daily email newsletter.
