GW Pharmaceuticals PLC- (NASDAQ: GWPH) and Radius Health (NASDAQ:RDUS) are both healthcare companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, profitability, valuation and risk.

Earnings & Valuation

This table compares GW Pharmaceuticals PLC- and Radius Health’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
GW Pharmaceuticals PLC- $10.25 million 254.26 -$171.62 million ($5.43) -18.95
Radius Health $980,000.00 1,442.73 -$225.19 million ($5.19) -6.26

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

Profitability

This table compares GW Pharmaceuticals PLC- and Radius Health’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
GW Pharmaceuticals PLC- -1,673.22% -48.31% -42.39%
Radius Health N/A -79.46% -71.59%

Insider and Institutional Ownership

75.0% of GW Pharmaceuticals PLC- shares are held by institutional investors. 5.5% of GW Pharmaceuticals PLC- shares are held by company insiders. Comparatively, 15.0% of Radius Health shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

GW Pharmaceuticals PLC- has a beta of 2.65, suggesting that its share price is 165% more volatile than the S&P 500. Comparatively, Radius Health has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for GW Pharmaceuticals PLC- and Radius Health, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GW Pharmaceuticals PLC- 0 2 5 0 2.71
Radius Health 0 3 5 0 2.63

GW Pharmaceuticals PLC- currently has a consensus price target of $144.57, suggesting a potential upside of 40.48%. Radius Health has a consensus price target of $52.17, suggesting a potential upside of 60.51%. Given Radius Health’s higher possible upside, analysts clearly believe Radius Health is more favorable than GW Pharmaceuticals PLC-.

Summary

GW Pharmaceuticals PLC- beats Radius Health on 7 of the 12 factors compared between the two stocks.

About GW Pharmaceuticals PLC-

GW Pharmaceuticals plc is a biopharmaceutical company focused on developing and commercializing therapeutics from its cannabinoid product platform in a range of disease areas. The Company’s lead cannabinoid product candidate is Epidiolex, which is a liquid formulation of pure plant-derived cannabidiol (CBD). The Company offers Sativex (nabiximols), which is indicated for the treatment of spasticity due to multiple sclerosis (MS). The Company operates through three segments: Commercial, Sativex Research and Development, and Pipeline Research and Development. The Commercial segment distributes and sells the Company’s commercial products. The Sativex Research and Development segment seeks to maximize the potential of Sativex through the development of new indications. The Pipeline Research and Development segment seeks to develop cannabinoid medications other than Sativex across a range of therapeutic areas using its cannabinoid technology platform.

About Radius Health

Radius Health, Inc. is a biopharmaceutical company. The Company is focused on the developing therapeutics in the areas of osteoporosis, oncology and endocrine diseases. The Company’s lead investigational product candidate, TYMLOS (abaloparatide-SC) injection is developed for the treatment of postmenopausal women with osteoporosis at high risk for fracture. The Company‚Äôs clinical pipeline also includes an investigational abaloparatide transdermal patch for potential use in osteoporosis and the investigational drug elacestrant (RAD1901) for potential use in hormone-driven and/or hormone-resistant breast cancer, and vasomotor symptoms in postmenopausal women. Its RAD140 is a non-steroidal, selective androgen receptor modulator (SARM). RAD140 is under development for potential use in hormone receptor positive breast cancer.

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