Contrasting Pfizer (PFE) and Sagent Pharmaceuticals (SGNT)

Pfizer (NYSE: PFE) and Sagent Pharmaceuticals (NASDAQ:SGNT) are both healthcare companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Valuation and Earnings

This table compares Pfizer and Sagent Pharmaceuticals’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Pfizer $52.82 billion 4.11 $7.22 billion $1.63 22.34
Sagent Pharmaceuticals N/A N/A N/A ($0.77) -28.26

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

Institutional and Insider Ownership

69.7% of Pfizer shares are held by institutional investors. 0.1% of Pfizer shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Pfizer and Sagent Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pfizer 18.69% 25.41% 8.90%
Sagent Pharmaceuticals -0.72% -0.81% -0.59%

Dividends

Pfizer pays an annual dividend of $1.28 per share and has a dividend yield of 3.5%. Sagent Pharmaceuticals does not pay a dividend. Pfizer pays out 78.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Sagent Pharmaceuticals has raised its dividend for 8 consecutive years.

Analyst Ratings

This is a breakdown of current ratings and price targets for Pfizer and Sagent Pharmaceuticals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pfizer 1 6 10 0 2.53
Sagent Pharmaceuticals 0 0 0 0 N/A

Pfizer currently has a consensus target price of $38.73, indicating a potential upside of 6.38%. Given Pfizer’s higher probable upside, research analysts plainly believe Pfizer is more favorable than Sagent Pharmaceuticals.

Summary

Pfizer beats Sagent Pharmaceuticals on 11 of the 13 factors compared between the two stocks.

Pfizer Company Profile

Pfizer Inc. (Pfizer) is a research-based global biopharmaceutical company. The Company is engaged in the discovery, development and manufacture of healthcare products. Its global portfolio includes medicines and vaccines, as well as consumer healthcare products. The Company manages its commercial operations through two business segments: Pfizer Innovative Health (IH) and Pfizer Essential Health (EH). IH focuses on developing and commercializing medicines and vaccines, as well as products for consumer healthcare. IH therapeutic areas include internal medicine, vaccines, oncology, inflammation and immunology, rare diseases and consumer healthcare. EH includes legacy brands, branded generics, generic sterile injectable products, biosimilars and infusion systems. EH also includes a research and development (R&D) organization, as well as its contract manufacturing business. Its brands include Prevnar 13, Xeljanz, Eliquis, Lipitor, Celebrex, Pristiq and Viagra.

Sagent Pharmaceuticals Company Profile

Sagent Pharmaceuticals, Inc. is a specialty and generic pharmaceutical company. The Company is a provider of pharmaceuticals to the hospital market, which it sells primarily throughout North America. It is focused on developing, manufacturing, sourcing and marketing injectable pharmaceutical products to the hospital market. It operates through two segments: Sagent US, consisting of the Company’s operations in the United States and the Sagent (China) Pharmaceuticals Co. Ltd. (SCP) manufacturing facility, and Omega, which is focused on the Canadian and international markets. It offers a range of products across anti-infective, oncology and critical care indications in a range of presentations, including single and multi-dose vials, pre-filled ready-to-use syringes and premix bags. Its Sagent US product portfolio includes approximately 60 marketed products that it offers in over 180 presentations, and its Omega segment offers over 50 products.

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