Galapagos (NASDAQ: GLPG) and Bioline RX (NASDAQ:BLRX) are both healthcare companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.

Volatility and Risk

Galapagos has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, Bioline RX has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500.

Profitability

This table compares Galapagos and Bioline RX’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Galapagos -22.26% -4.64% -3.45%
Bioline RX N/A -47.20% -42.23%

Valuation & Earnings

This table compares Galapagos and Bioline RX’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Galapagos $165.09 million 28.69 $59.76 million N/A N/A
Bioline RX N/A N/A -$15.84 million ($0.28) -4.07

Galapagos has higher revenue and earnings than Bioline RX.

Institutional and Insider Ownership

19.7% of Galapagos shares are held by institutional investors. Comparatively, 37.0% of Bioline RX shares are held by institutional investors. 2.9% of Galapagos shares are held by insiders. Comparatively, 1.1% of Bioline RX shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations for Galapagos and Bioline RX, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Galapagos 0 2 6 0 2.75
Bioline RX 0 0 5 0 3.00

Galapagos currently has a consensus price target of $115.17, indicating a potential upside of 23.86%. Bioline RX has a consensus price target of $3.20, indicating a potential upside of 180.70%. Given Bioline RX’s stronger consensus rating and higher probable upside, analysts plainly believe Bioline RX is more favorable than Galapagos.

Galapagos Company Profile

Galapagos NV is a Belgium-based biotechnology company. The Company’s activities are divided into two operating divisions: Research and Development (R & D) and Services. The R & D division is engaged in the discovery and development of small molecules. The Services division, offers target-to-drug discovery products and services to pharmaceutical and biotechnology companies and to patient foundations, encompassing target discovery and validation, screening and drug discovery through to delivery of pre-clinical candidates. As of December 31, 2011, Galapagos NV was, through its subsidiaries, active in Belgium, France, Switzerland, the Netherlands, the United Kingdom, Germany, the United States and Croatia. In April 2014, it sold BioFocus and Argenta service division operations to Charles River Laboratories International.

Bioline RX Company Profile

BioLine RX Ltd is an Israel-based company engaged in the development of therapeutics, from preclinical-stage development to advanced clinical trials, for a range of medical needs. Its clinical therapeutic candidates under development consist of BL-1020 that is in Phase II/III clinical trials to improve cognitive function in schizophrenia patients; BL-1040, which is under pivotal CE-Mark registration trial for the prevention of cardiac remodeling following an acute myocardial infarction; BL-5010, which has completed Phase I/II clinical trials for non-surgical removal of skin lesions; BL-1021 that has completed Phase Ia clinical trial for the treatment of neuropathic pain or pain that results from damage to nerve fibers, and BL-7040, a synthetic oligonucleotide, which is in Phase II clinical trial for the treatment of inflammatory bowel disease. The Company also has 11 pre-clinical stage development products for various indications.

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