The Medicines (MDCO) versus Hospira (HSP) Critical Survey

The Medicines (NASDAQ: MDCO) and Hospira (NYSE:HSP) are both mid-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, risk, valuation, institutional ownership, earnings and profitability.

Profitability

This table compares The Medicines and Hospira’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The Medicines -767.94% -174.68% -48.00%
Hospira 12.15% 16.51% 8.65%

Analyst Recommendations

This is a breakdown of recent ratings for The Medicines and Hospira, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The Medicines 0 0 9 0 3.00
Hospira 0 0 0 0 N/A

The Medicines currently has a consensus price target of $55.25, suggesting a potential upside of 100.84%. Given The Medicines’ higher probable upside, research analysts plainly believe The Medicines is more favorable than Hospira.

Earnings & Valuation

This table compares The Medicines and Hospira’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
The Medicines $167.84 million 11.95 -$119.11 million ($9.13) -3.01
Hospira N/A N/A N/A $2.39 37.64

Hospira has lower revenue, but higher earnings than The Medicines. The Medicines is trading at a lower price-to-earnings ratio than Hospira, indicating that it is currently the more affordable of the two stocks.

Summary

Hospira beats The Medicines on 5 of the 8 factors compared between the two stocks.

The Medicines Company Profile

The Medicines Company is a global biopharmaceutical company. The Company is focused on advancing the treatment of acute and intensive care patients through the delivery of medicines to the hospital marketplace around the world. It markets Angiomax (bivalirudin), Ionsys (fentanyl iontophoretic transdermal system), Minocin (minocycline) for injection and Orbactiv (oritavancin). It also has a pipeline of products in development, including Carbavance, inclisiran and MDCO-700. Carbavance is used for the treatment of hospitalized patients with gram-negative bacterial infections. Inclisiran is used for the treatment of hypercholesterolemia. MDCO-700 includes sedative-hypnotic, which is used to induce and maintain sedation for procedural care and general anesthesia for surgical care. In addition to these products and products in development, it has a portfolio of generic drugs.

Hospira Company Profile

Hospira, Inc. provides injectable pharmaceutical drugs and infusion technologies and it develops, manufactures, distributes and markets biosimilars. The Company’s portfolio includes generic acute-care and oncology injectables, biosimilars, and integrated infusion therapy and medication management products. The Company conducts operations across the world and is managed in three segments: the Americas, which include the United States, Canada, and Latin America; Europe, Middle East, and Africa (EMEA), and the Asia Pacific, which includes Asia, Japan, Australia and New Zealand. Its portfolio of products includes Specialty Injectable Pharmaceuticals, which includes generic injectables, injectables and biosimilars, Medication Management and Other Pharmaceuticals. Its portfolio of products is used by hospitals and alternate site providers, such as clinics, home healthcare providers and long-term care facilities.

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