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

Profitability

This table compares Theravance Biopharma and Aegerion Pharmaceuticals’ 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%
Aegerion Pharmaceuticals -75.07% N/A -29.21%

Valuation and Earnings

This table compares Theravance Biopharma and Aegerion Pharmaceuticals’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Theravance Biopharma $48.65 million 32.35 -$190.66 million ($4.63) -6.32
Aegerion Pharmaceuticals N/A N/A N/A ($5.97) N/A

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Theravance Biopharma and Aegerion Pharmaceuticals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Theravance Biopharma 1 0 5 0 2.67
Aegerion Pharmaceuticals 0 2 0 0 2.00

Theravance Biopharma presently has a consensus target price of $42.67, suggesting a potential upside of 45.92%. Aegerion Pharmaceuticals has a consensus target price of $1.50, suggesting a potential upside of Infinity. Given Aegerion Pharmaceuticals’ higher probable upside, analysts plainly believe Aegerion Pharmaceuticals is more favorable than Theravance Biopharma.

Risk and Volatility

Theravance Biopharma has a beta of 2.15, suggesting that its share price is 115% more volatile than the S&P 500. Comparatively, Aegerion Pharmaceuticals has a beta of 0.5, suggesting that its share price is 50% less volatile than the S&P 500.

Insider and Institutional Ownership

84.9% of Theravance Biopharma shares are held by institutional investors. Comparatively, 84.9% of Aegerion Pharmaceuticals shares are held by institutional investors. 6.1% of Theravance Biopharma shares are held by company insiders. Comparatively, 4.6% of Aegerion Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Theravance Biopharma beats Aegerion Pharmaceuticals on 6 of the 11 factors compared between the two stocks.

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.

Aegerion Pharmaceuticals Company Profile

Aegerion Pharmaceuticals, Inc. is a biopharmaceutical company engaged in the development and commercialization of therapies for patients with debilitating rare diseases. It operates through pharmaceuticals segment. Its products include lomitapide and metreleptin. Lomitapide is a small molecule microsomal triglyceride transfer protein (MTP) inhibitor. Lomitapide received marketing approval under the brand name Juxtapid (lomitapide) capsules from the United States Food and Drug Administration (FDA) as an adjunct to a low-fat diet and other lipid-lowering treatments. It also received marketing authorization for lomitapide in the European Union (EU) under the brand name LOJUXTA (lomitapide) hard capsules (LOJUXTA) as a treatment for HoFH in adults. Metreleptin is a recombinant human leptin analog that exerts its function by binding to and activating the human leptin receptor. Metreleptin is marketed in the United States under the brand name MYALEPT (metreleptin) for injection (MYALEPT).

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