Sagent Pharmaceuticals (NASDAQ: SGNT) and Astrazeneca PLC (NYSE:AZN) are both healthcare companies, but which is the better business? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, risk, valuation, institutional ownership and dividends.

Insider and Institutional Ownership

14.2% of Astrazeneca PLC shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Sagent Pharmaceuticals and Astrazeneca PLC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sagent Pharmaceuticals -0.72% -0.81% -0.59%
Astrazeneca PLC 17.80% 35.90% 8.81%

Volatility and Risk

Sagent Pharmaceuticals has a beta of 1.66, suggesting that its stock price is 66% more volatile than the S&P 500. Comparatively, Astrazeneca PLC has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500.

Valuation & Earnings

This table compares Sagent Pharmaceuticals and Astrazeneca PLC’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Sagent Pharmaceuticals N/A N/A N/A ($0.76) -28.59
Astrazeneca PLC $21.74 billion 4.03 $5.91 billion $3.05 11.35

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Sagent Pharmaceuticals and Astrazeneca PLC, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sagent Pharmaceuticals 0 0 0 0 N/A
Astrazeneca PLC 2 9 14 0 2.48

Astrazeneca PLC has a consensus price target of $36.90, indicating a potential upside of 6.57%. Given Astrazeneca PLC’s higher probable upside, analysts clearly believe Astrazeneca PLC is more favorable than Sagent Pharmaceuticals.

Dividends

Astrazeneca PLC pays an annual dividend of $1.37 per share and has a dividend yield of 4.0%. Sagent Pharmaceuticals does not pay a dividend. Astrazeneca PLC pays out 44.9% of its earnings in the form of a dividend.

Summary

Astrazeneca PLC beats Sagent Pharmaceuticals on 9 of the 11 factors compared between the two stocks.

Sagent Pharmaceuticals Company Profile

Sagent Pharmaceuticals, Inc. is a specialty and generic pharmaceutical company. The Company is a provider of pharmaceuticals to the hospital market, which it sells primarily throughout North America. It is focused on developing, manufacturing, sourcing and marketing injectable pharmaceutical products to the hospital market. It operates through two segments: Sagent US, consisting of the Company’s operations in the United States and the Sagent (China) Pharmaceuticals Co. Ltd. (SCP) manufacturing facility, and Omega, which is focused on the Canadian and international markets. It offers a range of products across anti-infective, oncology and critical care indications in a range of presentations, including single and multi-dose vials, pre-filled ready-to-use syringes and premix bags. Its Sagent US product portfolio includes approximately 60 marketed products that it offers in over 180 presentations, and its Omega segment offers over 50 products.

Astrazeneca PLC Company Profile

AstraZeneca PLC (AstraZeneca) is a biopharmaceutical company. The Company focuses on discovery and development of products, which are then manufactured, marketed and sold. The Company focuses on three main therapy areas: Oncology, Cardiovascular & Metabolic Disease (CVMD) and Respiratory, while selectively pursuing therapies in Autoimmunity, Infection and Neuroscience. In CVMD, it is expanding its portfolio into the cardiovascular-renal area with late-stage assets, such as ZS-9 and roxadustat, as well as investing to explore the benefits of its SGLT2 and GLP-1 franchises in chronic kidney disease (CKD) and heart failure (HF). The Company has approximately 40 projects in Phase I, including 29 new molecular entities (NMEs), and 11 oncology combination projects. It has approximately 40 projects in Phase II, including 25 NMEs; four significant additional indications for projects that have reached phase II, and seven oncology combination projects.

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