Johnson & Johnson (NYSE: JNJ) and Theravance Biopharma (NASDAQ:TBPHV) are both medical companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, risk, valuation, dividends, profitability, earnings and institutional ownership.

Insider & Institutional Ownership

66.0% of Johnson & Johnson shares are held by institutional investors. 0.2% of Johnson & Johnson shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Johnson & Johnson and Theravance Biopharma’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Johnson & Johnson $72.53 billion 4.98 $25.15 billion $5.92 22.71
Theravance Biopharma N/A N/A N/A N/A N/A

Johnson & Johnson has higher revenue and earnings than Theravance Biopharma.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Johnson & Johnson and Theravance Biopharma, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Johnson & Johnson 3 7 7 0 2.24
Theravance Biopharma 1 0 0 0 1.00

Johnson & Johnson currently has a consensus target price of $133.06, indicating a potential downside of 1.03%. Theravance Biopharma has a consensus target price of $24.00, indicating a potential upside of 23.08%. Given Theravance Biopharma’s higher possible upside, analysts clearly believe Theravance Biopharma is more favorable than Johnson & Johnson.

Profitability

This table compares Johnson & Johnson and Theravance Biopharma’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Johnson & Johnson 22.52% 26.76% 13.19%
Theravance Biopharma -1,889.06% -99.38% -46.98%

Dividends

Johnson & Johnson pays an annual dividend of $3.36 per share and has a dividend yield of 2.5%. Theravance Biopharma does not pay a dividend. Johnson & Johnson pays out 56.8% of its earnings in the form of a dividend. Theravance Biopharma has raised its dividend for 54 consecutive years.

Summary

Johnson & Johnson beats Theravance Biopharma on 9 of the 12 factors compared between the two stocks.

Johnson & Johnson Company Profile

Johnson & Johnson is a holding company, which is engaged in the research and development, manufacture and sale of a range of products in the healthcare field. It operates through three segments: Consumer, Pharmaceutical and Medical Devices. Its primary focus is products related to human health and well-being. The Consumer segment includes a range of products used in the baby care, oral care, skin care, over-the-counter pharmaceutical, women’s health and wound care markets. The Pharmaceutical segment is focused on five therapeutic areas, including immunology, infectious diseases, neuroscience, oncology, and cardiovascular and metabolic diseases. The Medical Devices segment includes a range of products used in the orthopedic, surgery, cardiovascular, diabetes care and vision care fields. Its research facilities are located in the United States, Belgium, Brazil, Canada, China, France, Germany, India, Israel, Japan, the Netherlands, Singapore, Switzerland and the United Kingdom.

Theravance Biopharma Company Profile

Theravance Biopharma, Inc. is a biopharmaceutical company. The Company is engaged in creating medicines for patients suffering from serious illness. The Company operates in the segment of discovery (research), development and commercialization of human therapeutics. The Company’s pipeline of internally discovered product candidates includes medicines to address the unmet needs of patients being treated for serious conditions primarily in the acute care setting. Its commercial product VIBATIV (telavancin) is a once-daily dual-mechanism antibiotic approved in the United States and Europe for certain difficult-to-treat infections. Its Revefenacin (TD-4208) is a long-acting muscarinic antagonist (LAMA) being developed as a nebulized treatment for chronic obstructive pulmonary disease. Its neprilysin (NEP) inhibitor program is designed to develop selective NEP inhibitors for the treatment of a range of cardiovascular and renal diseases.

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