Theravance Biopharma (NASDAQ: TBPH) and Corcept Therapeutics (NASDAQ:CORT) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, risk and profitability.

Profitability

This table compares Theravance Biopharma and Corcept Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Theravance Biopharma -742.59% -78.74% -43.79%
Corcept Therapeutics 22.28% 51.45% 33.01%

Risk & Volatility

Theravance Biopharma has a beta of 2.24, meaning that its stock price is 124% more volatile than the S&P 500. Comparatively, Corcept Therapeutics has a beta of 2.12, meaning that its stock price is 112% more volatile than the S&P 500.

Earnings and Valuation

This table compares Theravance Biopharma and Corcept Therapeutics’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Theravance Biopharma $31.36 million 50.45 -$211.25 million ($4.63) -6.35
Corcept Therapeutics $108.69 million 19.45 $25.67 million $0.20 93.20

Corcept Therapeutics has higher revenue and earnings than Theravance Biopharma. Theravance Biopharma is trading at a lower price-to-earnings ratio than Corcept Therapeutics, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

84.5% of Theravance Biopharma shares are owned by institutional investors. Comparatively, 62.6% of Corcept Therapeutics shares are owned by institutional investors. 6.1% of Theravance Biopharma shares are owned by insiders. Comparatively, 19.2% of Corcept Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and price targets for Theravance Biopharma and Corcept Therapeutics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Theravance Biopharma 0 0 5 0 3.00
Corcept Therapeutics 1 0 4 0 2.60

Theravance Biopharma currently has a consensus target price of $46.80, suggesting a potential upside of 59.24%. Corcept Therapeutics has a consensus target price of $16.60, suggesting a potential downside of 10.94%. Given Theravance Biopharma’s stronger consensus rating and higher probable upside, analysts clearly believe Theravance Biopharma is more favorable than Corcept Therapeutics.

Summary

Corcept Therapeutics beats Theravance Biopharma on 7 of the 13 factors compared between the two stocks.

About Theravance Biopharma

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.

About Corcept Therapeutics

Corcept Therapeutics Incorporated is a pharmaceutical company engaged in the discovery, development and commercialization of drugs for the treatment of severe metabolic, psychiatric and oncologic disorders. The Company is developing mifepristone, a compound that modulates the effects of cortisol by acting as a competitive antagonist at the glucocorticoid receptor (GR). As of December 31, 2016, it had discovered three structurally distinct series of selective cortisol modulators, all of which share mifepristone’s affinity for GR but, unlike mifepristone, do not bind to the progesterone receptor. It is conducting two clinical trials of its selective cortisol modulator, CORT125134. One trial is investigating CORT125134 as a treatment for patients with Cushing syndrome. The second trial is investigating the combination of CORT125134 and nab-paclitaxel (Celgene Corporation’s Abraxane) to treat patients with solid-tumor cancers.

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