Pfizer (NYSE:PFE – Get Free Report) and Iterum Therapeutics (NASDAQ:ITRM – Get Free Report) are both healthcare companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.
Volatility and Risk
Pfizer has a beta of 0.32, indicating that its share price is 68% less volatile than the S&P 500. Comparatively, Iterum Therapeutics has a beta of 2.96, indicating that its share price is 196% more volatile than the S&P 500.
Valuation and Earnings
This table compares Pfizer and Iterum Therapeutics”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Pfizer | $62.58 billion | 2.66 | $7.77 billion | $0.76 | 38.44 |
| Iterum Therapeutics | $390,000.00 | 4.10 | -$24.77 million | ($0.75) | -0.04 |
Pfizer has higher revenue and earnings than Iterum Therapeutics. Iterum Therapeutics is trading at a lower price-to-earnings ratio than Pfizer, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
68.4% of Pfizer shares are owned by institutional investors. Comparatively, 9.2% of Iterum Therapeutics shares are owned by institutional investors. 0.6% of Pfizer shares are owned by insiders. Comparatively, 2.0% of Iterum Therapeutics 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.
Profitability
This table compares Pfizer and Iterum Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Pfizer | 6.80% | 19.63% | 8.46% |
| Iterum Therapeutics | N/A | N/A | -65.54% |
Analyst Ratings
This is a breakdown of recent recommendations for Pfizer and Iterum Therapeutics, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Pfizer | 2 | 14 | 5 | 0 | 2.14 |
| Iterum Therapeutics | 1 | 2 | 0 | 0 | 1.67 |
Pfizer currently has a consensus target price of $28.72, indicating a potential downside of 1.69%. Given Pfizer’s stronger consensus rating and higher possible upside, equities analysts plainly believe Pfizer is more favorable than Iterum Therapeutics.
Summary
Pfizer beats Iterum Therapeutics on 11 of the 14 factors compared between the two stocks.
About Pfizer
Pfizer Inc. discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products in the United States, Europe, and internationally. The company offers medicines and vaccines in various therapeutic areas, including cardiovascular metabolic, migraine, and women's health under the Eliquis, Nurtec ODT/Vydura, Zavzpret, and the Premarin family brands; infectious diseases with unmet medical needs under the Prevnar family, Abrysvo, Nimenrix, FSME/IMMUN-TicoVac, and Trumenba brands; and COVID-19 prevention and treatment, and potential future mRNA and antiviral products under the Comirnaty and Paxlovid brands. It also provides medicines and vaccines in various therapeutic areas, such as biosimilars for chronic immune and inflammatory diseases under the Xeljanz, Enbrel, Inflectra, Litfulo, Velsipity, and Cibinqo brands; amyloidosis, hemophilia, endocrine diseases, and sickle cell disease under the Vyndaqel family, Oxbryta, BeneFIX, Somavert, Ngenla, and Genotropin brands; sterile injectable and anti-infective medicines under the Sulperazon, Medrol, Zavicefta, Zithromax, and Panzyga brands; and biologics, small molecules, immunotherapies, and biosimilars under the Ibrance, Xtandi, Inlyta, Bosulif, Mektovi, Padcev, Adcetris, Talzenna, Tukysa, Elrexfio, Tivdak, Lorbrena, and Braftovi brands. In addition, the company involved in the contract manufacturing business. It serves wholesalers, retailers, hospitals, clinics, government agencies, pharmacies, individual provider offices, retail pharmacies, and integrated delivery systems. The company has collaboration agreements with Bristol-Myers Squibb Company; Astellas Pharma US, Inc.; Merck KGaA; and BioNTech SE. Pfizer Inc. was founded in 1849 and is headquartered in New York, New York.
About Iterum Therapeutics
Iterum Therapeutics plc, a clinical-stage pharmaceutical company, engages in developing and commercializing anti-infectives in Ireland, Bermuda, and the United States. It is developing sulopenem, a novel anti-infective compound with oral and intravenous formulations that is in Phase III clinical trials for the treatment of uncomplicated urinary tract infections, complicated urinary tract infections, and complicated intra-abdominal infections. The company was incorporated in 2015 and is headquartered in Dublin, Ireland.
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