Critical Contrast: BridgeBio Pharma (NASDAQ:BBIO) and Teva Pharmaceutical Industries (NYSE:TEVA)

BridgeBio Pharma (NASDAQ:BBIO) and Teva Pharmaceutical Industries (NYSE:TEVA) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, earnings, profitability, analyst recommendations, risk and valuation.

Profitability

This table compares BridgeBio Pharma and Teva Pharmaceutical Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BridgeBio Pharma	-329.25%	N/A	-85.69%
Teva Pharmaceutical Industries	-0.95%	46.10%	7.18%

Insider and Institutional Ownership

99.9% of BridgeBio Pharma shares are held by institutional investors. Comparatively, 54.1% of Teva Pharmaceutical Industries shares are held by institutional investors. 18.2% of BridgeBio Pharma shares are held by company insiders. Comparatively, 0.5% of Teva Pharmaceutical Industries shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares BridgeBio Pharma and Teva Pharmaceutical Industries”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BridgeBio Pharma	$221.90 million	45.99	-$535.76 million	($4.09)	-13.05
Teva Pharmaceutical Industries	$16.54 billion	1.31	-$1.64 billion	($0.16)	-118.35

BridgeBio Pharma has higher earnings, but lower revenue than Teva Pharmaceutical Industries. Teva Pharmaceutical Industries is trading at a lower price-to-earnings ratio than BridgeBio Pharma, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

BridgeBio Pharma has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500. Comparatively, Teva Pharmaceutical Industries has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for BridgeBio Pharma and Teva Pharmaceutical Industries, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BridgeBio Pharma	0	0	17	0	3.00
Teva Pharmaceutical Industries	0	0	6	2	3.25

BridgeBio Pharma presently has a consensus price target of $63.35, suggesting a potential upside of 18.68%. Teva Pharmaceutical Industries has a consensus price target of $24.71, suggesting a potential upside of 30.51%. Given Teva Pharmaceutical Industries’ stronger consensus rating and higher possible upside, analysts clearly believe Teva Pharmaceutical Industries is more favorable than BridgeBio Pharma.

Summary

Teva Pharmaceutical Industries beats BridgeBio Pharma on 8 of the 15 factors compared between the two stocks.

About BridgeBio Pharma

BridgeBio Pharma, Inc., a commercial-stage biopharmaceutical company, discovers, creates, tests, and delivers transformative medicines to treat patients who suffer from genetic diseases and cancers. Its products in development programs include AG10, a next-generation oral small molecule near-complete TTR stabilizer that is in Phase 3 clinical trial for the treatment of TTR amyloidosis, or transthyretin amyloid cardiomyopathy (ATTR-CM); low-dose infigratinib, an oral FGFR1-3 selective tyrosine kinase inhibitor, which is in Phase 3 double-blinded, placebo-controlled pivotal study for the treatment option for children with achondroplasia; and BBP-631, an AAV5 gene transfer product candidate that is in Phase 1/2 clinical trial for the treatment of congenital adrenal hyperplasia, or CAH, driven by 21-hydroxylase deficiency, or 21OHD. The company also develops Encaleret, a small molecule antagonist of the calcium sensing receptor, or CaSR, which is in phase 3 clinical trial for treating autosomal dominant hypocalcemia type 1, or ADH1; and BBP-418, a glycosylation substrate pro-drug that is in Phase 3 clinical trial for treating limb-girdle muscular dystrophy type 2I/R9 (LGMD2I/R9). In addition, it engages in developing products for mendelian, oncology, and gene therapy diseases. BridgeBio Pharma, Inc. has license and collaboration agreements with the Leland Stanford Junior University; and Leidos Biomedical Research, Inc. The company was founded in 2015 and is headquartered in Palo Alto, California.

About Teva Pharmaceutical Industries

Teva Pharmaceutical Industries Limited develops, manufactures, markets, and distributes generic medicines, specialty medicines, and biopharmaceutical products in North America, Europe, Israel, and internationally. It offers generic medicines in various dosage forms, such as tablets, capsules, injectables, inhalants, liquids, transdermal patches, ointments, and creams; sterile products, hormones, high-potency drugs, and cytotoxic substances in parenteral and solid dosage forms; and generic products with medical devices and combination products. The company focuses on the central nervous system (CNS), respiratory, and oncology areas. It provides active pharmaceutical ingredients, as well as contract manufacturing services; and operates an out-licensing platform that offers a portfolio of products to other pharmaceutical companies. The company also offers BENDEKA and TREANDA injections for the treatment of chronic lymphocytic leukemia and indolent b-cell non-hodgkin’s lymphoma; GRANIX; TRISENOX; LONQUEX; and TEVAGRASTIM/RATIOGRASTIM. In addition, it provides COPAXONE for the treatment of relapsing forms of multiple sclerosis; AJOVY for the preventive treatment of migraine in adults; AUSTEDO for the treatment of neurodegenerative and movement disorders associated with Huntington’s disease and tardive dyskinesia; UZEDY for the treatment of schizophrenia; ProAir RespiClick inhalation powder; QVAR for treatment for asthma; BRALTUS, a long-acting muscarinic antagonist; CINQAIR/CINQAERO injection; DuoResp Spiromax, an inhaled corticosteroid and long-acting beta-agonist bronchodilator; and AirDuo RespiClick fluticasone propionate and salmeterol inhalation powder. The company offers its OTC products under SUDOCREM, NasenDuo, DICLOX FORTE, OLFEN Max, and FLEGAMINA brand names. It has collaboration agreements with MedinCell; Sanofi; Alvotech; and Biolojic Design Ltd., as well as license agreement with MODAG GmbH. The company was founded in 1901 and is based in Tel Aviv, Israel.