Allergan PLC. (NYSE: AGN) and Mylan N.V. (NASDAQ:MYL) are both large-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, profitability, institutional ownership, analyst recommendations, risk and valuation.

Volatility and Risk

Allergan PLC. has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500. Comparatively, Mylan N.V. has a beta of 1.27, indicating that its share price is 27% more volatile than the S&P 500.

Insider & Institutional Ownership

83.6% of Allergan PLC. shares are held by institutional investors. Comparatively, 71.6% of Mylan N.V. shares are held by institutional investors. 0.4% of Allergan PLC. shares are held by company insiders. Comparatively, 0.7% of Mylan N.V. shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

Allergan PLC. pays an annual dividend of $2.80 per share and has a dividend yield of 1.2%. Mylan N.V. does not pay a dividend. Allergan PLC. pays out 9.9% of its earnings in the form of a dividend.

Profitability

This table compares Allergan PLC. and Mylan N.V.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Allergan PLC. 79.17% 7.37% 4.17%
Mylan N.V. 5.51% 22.42% 7.54%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Allergan PLC. and Mylan N.V., as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Allergan PLC. 0 5 13 0 2.72
Mylan N.V. 0 7 12 2 2.76

Allergan PLC. presently has a consensus price target of $277.76, suggesting a potential upside of 21.83%. Mylan N.V. has a consensus price target of $48.05, suggesting a potential upside of 57.70%. Given Mylan N.V.’s stronger consensus rating and higher probable upside, analysts clearly believe Mylan N.V. is more favorable than Allergan PLC..

Earnings and Valuation

This table compares Allergan PLC. and Mylan N.V.’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Allergan PLC. $15.07 billion 5.06 $6.15 billion $28.15 8.10
Mylan N.V. $12.01 billion 1.36 $3.92 billion $1.22 24.98

Allergan PLC. has higher revenue and earnings than Mylan N.V.. Allergan PLC. is trading at a lower price-to-earnings ratio than Mylan N.V., indicating that it is currently the more affordable of the two stocks.

Summary

Allergan PLC. beats Mylan N.V. on 9 of the 17 factors compared between the two stocks.

About Allergan PLC.

Allergan, Inc. is a multi-specialty healthcare company. The Company focuses on developing and commercializing pharmaceuticals, biologics, medical devices and over-the-counter (OTC) products. It discovers, develops and commercializes a range of products for the ophthalmic, neurological, medical aesthetics, medical dermatology, breast aesthetics, urological and other specialty markets. The Company operates in two segments: specialty pharmaceuticals and medical devices. The specialty pharmaceuticals segment produces products, including ophthalmic products for dry eye, glaucoma, inflammation, infection, allergy and retinal disease; Botox for therapeutic and aesthetic indications; skin care products for acne, psoriasis, eyelash growth and prescription and OTC skin care products, and urologics products. The medical devices segment produces medical devices, including breast implants for augmentation, revision and reconstructive surgery and tissue expanders, and facial aesthetics products.

About Mylan N.V.

Mylan N.V. is a global pharmaceutical company. The Company develops, licenses, manufactures, markets and distributes generic and branded generic products for resale by others; specialty pharmaceuticals, and active pharmaceutical ingredients (APIs). It operates through two segments: Generics and Specialty. Its Generics segment primarily develops, manufactures, sells and distributes generic or branded generic pharmaceutical products in tablet, capsule, injectable, transdermal patch, gel, cream or ointment form, as well as API. Its Specialty segment is focused on respiratory and allergy therapies. The EpiPen Auto-Injector, which is used in the treatment of severe allergic reactions, is an epinephrine auto-injector. Its Perforomist Inhalation Solution is a long-acting beta2-adrenergic agonist indicated for the maintenance treatment of bronchoconstriction in chronic obstructive pulmonary disorder (COPD) patients. The Company also markets ULTIVA, which is an analgesic agent.

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