Cambrex Corporation (NYSE: CBM) and Patheon N.V. (NYSE:PTHN) are both pharmaceuticals – nec companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, profitability, institutional ownership and earnings.

Analyst Ratings

This is a summary of recent recommendations and price targets for Cambrex Corporation and Patheon N.V., as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cambrex Corporation 0 0 3 0 3.00
Patheon N.V. 0 6 1 0 2.14

Cambrex Corporation currently has a consensus price target of $62.33, indicating a potential upside of 29.59%. Patheon N.V. has a consensus price target of $33.60, indicating a potential downside of 3.95%. Given Cambrex Corporation’s stronger consensus rating and higher possible upside, analysts clearly believe Cambrex Corporation is more favorable than Patheon N.V..

Insider & Institutional Ownership

19.1% of Patheon N.V. shares are held by institutional investors. 2.5% of Cambrex Corporation shares are held by insiders. Comparatively, 0.1% of Patheon N.V. shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Cambrex Corporation and Patheon N.V.’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Cambrex Corporation $490.64 million 3.21 $81.67 million $3.05 15.77
Patheon N.V. $1.87 billion 2.72 $31.70 million $0.76 46.03

Cambrex Corporation has higher revenue, but lower earnings than Patheon N.V.. Cambrex Corporation is trading at a lower price-to-earnings ratio than Patheon N.V., indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Cambrex Corporation and Patheon N.V.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cambrex Corporation 18.79% 23.42% 16.19%
Patheon N.V. 5.63% -35.93% 4.18%

Summary

Cambrex Corporation beats Patheon N.V. on 10 of the 13 factors compared between the two stocks.

About Cambrex Corporation

Cambrex Corporation (Cambrex) is a life sciences company. It provides products and services for the development and commercialization of generic therapeutics. It operates through four segments, which are manufacturing facilities that have been aggregated as a single segment. Its manufacturing facilities are owned by the subsidiaries, including Cambrex Charles City, Inc., Cambrex Karlskoga AB and Cambrex Profarmaco Milano S.r.l. Its products consist of active pharmaceutical ingredients (APIs) and pharmaceutical intermediates. It delivers services, such as custom organic synthesis and process development; current good manufacturing practices (cGMP) manufacturing of API and intermediates from grams to hundreds of kilograms; cGMP analytical services; controlled substance research and development (R&D) and manufacture, Schedule II-V, and contract research. It has API R&D and cGMP facilities in the United States and Europe. It supplies over 90 generic APIs.

About Patheon N.V.

Patheon N.V. is a provider of outsourced pharmaceutical development and manufacturing services. The Company’s segments include Drug Product Services (DPS), Pharmaceutical Development Services (PDS) and Drug Substance Services (DSS). The DPS segment is engaged in manufacturing and packaging for approved prescription, over-the-counter (OTC) and nutritional products. The PDS segment provides a range of formulation, production and technical services from the early stages of a product’s development to regulatory approval, as well as for new formulations of approved products for lifecycle extension. The DSS segment provides small molecule active pharmaceutical ingredient (API) and outsourced manufacturing solutions for large molecule biological API from early development through commercial scale production. It provides an integrated range of API and finished drug product services to its customers, from formulation development to clinical and commercial-scale manufacturing.

Receive News & Ratings for Cambrex Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Cambrex Corporation and related companies with MarketBeat.com's FREE daily email newsletter.