Critical Contrast: Innoviva (NASDAQ:INVA) & Prestige Consumer Healthcare (NYSE:PBH)

Prestige Consumer Healthcare (NYSE:PBH) and Innoviva (NASDAQ:INVA) are both healthcare companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, risk, valuation and profitability.

Earnings & Valuation

This table compares Prestige Consumer Healthcare and Innoviva”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Prestige Consumer Healthcare	$1.09 billion	2.05	$190.30 million	$3.57	13.16
Innoviva	$411.33 million	3.63	$271.17 million	$4.10	5.04

Innoviva has lower revenue, but higher earnings than Prestige Consumer Healthcare. Innoviva is trading at a lower price-to-earnings ratio than Prestige Consumer Healthcare, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations for Prestige Consumer Healthcare and Innoviva, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Prestige Consumer Healthcare	1	3	2	0	2.17
Innoviva	1	1	4	0	2.50

Prestige Consumer Healthcare currently has a consensus target price of $70.75, suggesting a potential upside of 50.55%. Innoviva has a consensus target price of $34.75, suggesting a potential upside of 68.20%. Given Innoviva’s stronger consensus rating and higher possible upside, analysts clearly believe Innoviva is more favorable than Prestige Consumer Healthcare.

Insider & Institutional Ownership

100.0% of Prestige Consumer Healthcare shares are owned by institutional investors. Comparatively, 99.1% of Innoviva shares are owned by institutional investors. 1.5% of Prestige Consumer Healthcare shares are owned by company insiders. Comparatively, 2.0% of Innoviva shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Prestige Consumer Healthcare and Innoviva’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Prestige Consumer Healthcare	15.57%	11.39%	5.66%
Innoviva	81.19%	28.03%	20.19%

Risk and Volatility

Prestige Consumer Healthcare has a beta of 0.33, indicating that its share price is 67% less volatile than the S&P 500. Comparatively, Innoviva has a beta of 0.33, indicating that its share price is 67% less volatile than the S&P 500.

Summary

Innoviva beats Prestige Consumer Healthcare on 10 of the 13 factors compared between the two stocks.

About Prestige Consumer Healthcare

Prestige Consumer Healthcare Inc., together with its subsidiaries, develops, manufactures, markets, distributes, and sells over-the-counter (OTC) health and personal care products in the United States and internationally. The company operates in two segments, North American OTC Healthcare and International OTC Healthcare. It offers BC/Goody's analgesic powders, Boudreaux's Butt Paste baby ointments, Chloraseptic sore throat liquids and lozenges, Clear Eyes for eye redness relief, Compound W wart removals, DenTek for PEG oral care, Debrox ear wax removals, and Dramamine for motion sickness relief. The company also provides Fleet adult enemas/suppositories, Gaviscon upset stomach remedies, Luden's cough drops, Monistat vaginal anti-fungal, Nix lice/parasite treatments, Summer's Eve feminine hygiene, TheraTears dry eye relief, Fess nasal saline spray and washes, and Hydralyte for oral rehydration products. It sells its products through mass merchandisers; and drug, food, dollar, convenience, and club stores, as well as e-commerce channels. The company was formerly known as Prestige Brands Holdings, Inc. and changed its name to Prestige Consumer Healthcare Inc. in August 2018. Prestige Consumer Healthcare Inc. was founded in 1996 and is headquartered in Tarrytown, New York.

About Innoviva

Innoviva, Inc. engages in the development and commercialization of pharmaceutical products in the United States and internationally. The company’s products include RELVAR/BREO ELLIPTA, a once-daily combination medicine consisting of a LABA, vilanterol (VI), an inhaled corticosteroid (ICS), and fluticasone furoate; ANORO ELLIPTA, a once-daily medicine combining a long-acting muscarinic antagonist (LAMA) and umeclidinium bromide (UMEC) with a LABA, VI; GIAPREZA (angiotensin II), a vasoconstrictor to increase blood pressure in adults with septic or other distributive shock; XERAVA (eravacycline) for the treatment of complicated intra-abdominal infections in adults; and XACDURO, a beta lactamase inhibitor for the treatment of hospital-acquired bacterial pneumonia and ventilator-associated bacterial pneumonia. Its development pipeline includes zoliflodacin, a late-stage product candidate, a potential single oral dose cure for the treatment of uncomplicated gonorrhea. Innoviva, Inc. has a strategic partnership with Sarissa Capital Management LP. It has long-acting beta2 agonist (LABA) collaboration agreement with Glaxo Group Limited to develop and commercialize once-daily products for the treatment of chronic obstructive pulmonary disease and asthma. The company was formerly known as Theravance, Inc. and changed its name to Innoviva, Inc. in January 2016. Innoviva, Inc. was incorporated in 1996 and is headquartered in Burlingame, California.