Bausch Health Cos (NYSE:BHC – Get Free Report) and Chugai Pharmaceutical (OTCMKTS:CHGCY – Get Free Report) are both healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, analyst recommendations, profitability, earnings and risk.
Risk and Volatility
Bausch Health Cos has a beta of 0.37, meaning that its share price is 63% less volatile than the S&P 500. Comparatively, Chugai Pharmaceutical has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500.
Earnings and Valuation
This table compares Bausch Health Cos and Chugai Pharmaceutical”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bausch Health Cos | $10.27 billion | 0.22 | $157.00 million | ($2.96) | -2.00 |
| Chugai Pharmaceutical | $8.41 billion | 8.12 | $2.91 billion | $0.92 | 22.55 |
Chugai Pharmaceutical has lower revenue, but higher earnings than Bausch Health Cos. Bausch Health Cos is trading at a lower price-to-earnings ratio than Chugai Pharmaceutical, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
78.7% of Bausch Health Cos shares are held by institutional investors. Comparatively, 0.0% of Chugai Pharmaceutical shares are held by institutional investors. 20.7% of Bausch Health Cos shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Analyst Ratings
This is a breakdown of current ratings for Bausch Health Cos and Chugai Pharmaceutical, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bausch Health Cos | 1 | 6 | 0 | 0 | 1.86 |
| Chugai Pharmaceutical | 0 | 3 | 1 | 1 | 2.60 |
Bausch Health Cos presently has a consensus price target of $8.00, indicating a potential upside of 35.02%. Given Bausch Health Cos’ higher possible upside, equities research analysts clearly believe Bausch Health Cos is more favorable than Chugai Pharmaceutical.
Profitability
This table compares Bausch Health Cos and Chugai Pharmaceutical’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Bausch Health Cos | -10.12% | -561.95% | 6.31% |
| Chugai Pharmaceutical | 35.09% | 23.76% | 19.92% |
Summary
Chugai Pharmaceutical beats Bausch Health Cos on 11 of the 15 factors compared between the two stocks.
About Bausch Health Cos
Bausch Health Companies Inc. operates as a diversified specialty pharmaceutical and medical device company in the United States and internationally. It develops, manufactures, and markets a range of products primarily in gastroenterology, hepatology, neurology, dermatology, international pharmaceuticals, over-the-counter (OTC) products, aesthetic medical devices, and eye health. The company operates through five segments: Salix, International, Solta Medical, Diversified, and Bausch + Lomb. The Salix segment provides gastroenterology products in the United States. The International segment sells aesthetic medical devices, branded pharmaceuticals, generic pharmaceuticals, and OTC products internationally. The Solta Medical segment engages in the sale of aesthetic medical devices. The Diversified segment offers pharmaceutical products in the areas of neurology and certain other therapeutic classes; generic products; ortho dermatologic; and dentistry products in the United States. The Bausch + Lomb segment offers products in the areas of vision care, surgical, and ophthalmic pharmaceuticals products. The company was formerly known as Valeant Pharmaceuticals International, Inc. and changed its name to Bausch Health Companies Inc. in July 2018. Bausch Health Companies Inc. is headquartered in Laval, Canada.
About Chugai Pharmaceutical
Chugai Pharmaceutical Co., Ltd., together with its subsidiaries, engages in the research, development, manufacture, sale, importation, and exportation of pharmaceuticals in Japan and internationally. The company’s products for oncology primarily include Avastin, FoundationOne, Polivy, Rozlytrek, Tecentriq, Perjeta, Alecensa, Herceptin, Kadcyla, Rituxan, and Gazyva; Edirol, an Osteoporosis agent; Mircera, an erythropoiesis agent; Oxarol, an agent for secondary hyperparathyroidism; and other diseases comprise Hemlibra, CellCept, Bonviva, Tamiflu, Evrysdi, Ronapreve, Vabysmo, and Enspryng. It has various development product candidates in the areas of oncology, immunology, neuroscience, hematology, ophthalmology, and other diseases. Chugai Pharmaceutical Co., Ltd. has strategic alliances and collaboration with Roche Group. The company was founded in 1925 and is headquartered in Chuo, Japan. Chugai Pharmaceutical Co., Ltd. operates as a subsidiary of Roche Holding Ltd.
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