SciClone Pharmaceuticals (NASDAQ: SCLN) and Bristol-Myers Squibb (NYSE:BMY) are both healthcare companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, valuation, profitability, risk, analyst recommendations and institutional ownership.

Profitability

This table compares SciClone Pharmaceuticals and Bristol-Myers Squibb’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SciClone Pharmaceuticals 27.39% 20.24% 18.42%
Bristol-Myers Squibb 20.56% 32.41% 14.66%

Insider & Institutional Ownership

72.8% of SciClone Pharmaceuticals shares are held by institutional investors. Comparatively, 69.8% of Bristol-Myers Squibb shares are held by institutional investors. 5.2% of SciClone Pharmaceuticals shares are held by insiders. Comparatively, 0.2% of Bristol-Myers Squibb shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares SciClone Pharmaceuticals and Bristol-Myers Squibb’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SciClone Pharmaceuticals N/A N/A N/A $0.86 12.97
Bristol-Myers Squibb $19.43 billion 5.23 $4.46 billion $2.54 24.42

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

Dividends

Bristol-Myers Squibb pays an annual dividend of $1.56 per share and has a dividend yield of 2.5%. SciClone Pharmaceuticals does not pay a dividend. Bristol-Myers Squibb pays out 61.4% of its earnings in the form of a dividend. Bristol-Myers Squibb has increased its dividend for 7 consecutive years.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for SciClone Pharmaceuticals and Bristol-Myers Squibb, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SciClone Pharmaceuticals 0 1 0 0 2.00
Bristol-Myers Squibb 1 8 9 0 2.44

SciClone Pharmaceuticals currently has a consensus price target of $14.00, suggesting a potential upside of 25.56%. Bristol-Myers Squibb has a consensus price target of $63.92, suggesting a potential upside of 3.07%. Given SciClone Pharmaceuticals’ higher probable upside, equities research analysts clearly believe SciClone Pharmaceuticals is more favorable than Bristol-Myers Squibb.

Summary

Bristol-Myers Squibb beats SciClone Pharmaceuticals on 7 of the 13 factors compared between the two stocks.

SciClone Pharmaceuticals Company Profile

SciClone Pharmaceuticals, Inc. is a pharmaceutical company. The Company’s product portfolio of therapies includes oncology, infectious diseases and cardiovascular disorders. The Company’s business is focused primarily in the People’s Republic of China. The Company operates in two segments: China and the Rest of the World, including its operations in the United States and Hong Kong. The Company’s lead product ZADAXIN (thymalfasin) is approved in over 30 countries, which is used for the treatment of hepatitis B virus (HBV), hepatitis C virus (HCV), and certain cancers according to the local regulatory approvals, and for use as an immune system enhancer. In addition to ZADAXIN, SciClone markets seven partnered and in-licensed products in China. The Company sells ZADAXIN in various international markets through its subsidiary, SciClone Pharmaceuticals International Ltd. (SPIL). Its development portfolio includes Angiomax, Loramyc, Neucardin, VIBATIV and Cleviprex.

Bristol-Myers Squibb Company Profile

Bristol-Myers Squibb Company is engaged in the discovery, development, licensing, manufacturing, marketing, distribution and sale of biopharmaceutical products. The Company’s pharmaceutical products include chemically synthesized drugs, or small molecules, and products produced from biological processes called biologics. Small molecule drugs are administered orally in the form of a pill or tablet. Biologics are administered to patients through injections or by infusion. The Company’s products include Empliciti, Opdivo, Sprycel, Yervoy, Eliquis, Orencia, Baraclude, Hepatitis C Franchise, Reyataz Franchise and Sustiva Franchise. It offers products for a range of therapeutic classes, which include virology, including human immunodeficiency virus (HIV) infection; oncology; immunoscience, and cardiovascular. Its products are sold to wholesalers, retail pharmacies, hospitals, government entities and the medical profession across the world.

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