Jazz Pharmaceuticals (NASDAQ: JAZZ) and TetraLogic Pharmaceuticals (OTCMKTS:TLOG) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, institutional ownership, risk, earnings, profitability, analyst recommendations and valuation.

Earnings & Valuation

This table compares Jazz Pharmaceuticals and TetraLogic Pharmaceuticals’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Jazz Pharmaceuticals $1.49 billion 5.59 $396.83 million $6.07 22.85
TetraLogic Pharmaceuticals N/A N/A -$49.72 million ($1.65) -0.03

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

Profitability

This table compares Jazz Pharmaceuticals and TetraLogic Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Jazz Pharmaceuticals 23.58% 22.92% 10.07%
TetraLogic Pharmaceuticals N/A N/A N/A

Insider & Institutional Ownership

90.5% of Jazz Pharmaceuticals shares are owned by institutional investors. Comparatively, 0.0% of TetraLogic Pharmaceuticals shares are owned by institutional investors. 4.3% of Jazz Pharmaceuticals shares are owned by insiders. Comparatively, 15.4% of TetraLogic Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Jazz Pharmaceuticals and TetraLogic Pharmaceuticals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Jazz Pharmaceuticals 0 5 16 0 2.76
TetraLogic Pharmaceuticals 0 0 0 0 N/A

Jazz Pharmaceuticals currently has a consensus target price of $181.71, indicating a potential upside of 31.01%. Given Jazz Pharmaceuticals’ higher possible upside, analysts clearly believe Jazz Pharmaceuticals is more favorable than TetraLogic Pharmaceuticals.

Volatility & Risk

Jazz Pharmaceuticals has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.Comparatively, TetraLogic Pharmaceuticals has a beta of 2.78, meaning that its share price is 178% more volatile than the S&P 500.

Summary

Jazz Pharmaceuticals beats TetraLogic Pharmaceuticals on 9 of the 11 factors compared between the two stocks.

About Jazz Pharmaceuticals

Jazz Pharmaceuticals, Inc. is a specialty pharmaceutical company focusing on the development and commercialization of pharmaceutical products to meet unmet medical needs in neurology and psychiatry. As of December 31, 2009, the Company markets two products: Xyrem (sodium oxybate) for the treatment of both cataplexy and excessive daytime sleepiness in patients with narcolepsy; and Luvox CR (fluvoxamine maleate) for the treatment of both obsessive compulsive disorder and social anxiety disorder. Its marketed products and late-stage product candidate are Xyrem (sodium oxybate) oral solution, Luvox CR (fluvoxamine maleate) Extended-Release Capsules and JZP-6 (sodium oxybate). Its other product candidates in clinical development are oral tablet forms of sodium oxybate; JZP-8 (intranasal clonazepam); JZP-4 (elpetrigine), and JZP-7 (ropinirole gel).

About TetraLogic Pharmaceuticals

TetraLogic Pharmaceuticals Corporation is a clinical-stage biopharmaceutical company. The Company is focused on discovering and developing small molecule therapeutics in oncology, infectious diseases and autoimmune diseases. The Company’s segment is the identification and development of novel small molecule therapies in oncology and infectious diseases. The Company has approximately two clinical-stage product candidates in development, such as birinapant and SHAPE. SHAPE is the Company’s histone deacetylase (HDAC) inhibitor that it is developing for topical use for the treatment of early-stage cutaneous T-cell lymphoma (CTCL). The Company is also exploring studying SHAPE in alopecia areata, an autoimmune skin disease. SHAPE has been granted the United States orphan drug designation for CTCL. Birinapant is a small molecule therapeutic that mimics Second Mitochondrial Activator of Caspases (SMAC)-mimetic, which leads to apoptosis or cell-death in damaged cells.

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