Financial Survey: Covance (CVD) vs. Biohaven Pharmaceutical (BHVN)

Covance (NYSE: CVD) and Biohaven Pharmaceutical (NYSE:BHVN) are both biotechnology & medical research – nec companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, valuation, institutional ownership, profitability and analyst recommendations.

Analyst Ratings

This is a summary of current ratings and target prices for Covance and Biohaven Pharmaceutical, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Covance 0 0 0 0 N/A
Biohaven Pharmaceutical 0 0 6 0 3.00

Biohaven Pharmaceutical has a consensus price target of $38.00, suggesting a potential upside of 17.68%. Given Biohaven Pharmaceutical’s higher probable upside, analysts plainly believe Biohaven Pharmaceutical is more favorable than Covance.

Profitability

This table compares Covance and Biohaven Pharmaceutical’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Covance 7.70% 12.64% 8.17%
Biohaven Pharmaceutical N/A N/A N/A

Earnings & Valuation

This table compares Covance and Biohaven Pharmaceutical’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Covance N/A N/A N/A $3.24 33.05
Biohaven Pharmaceutical N/A N/A -$63.67 million ($5.22) -6.19

Biohaven Pharmaceutical is trading at a lower price-to-earnings ratio than Covance, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

47.8% of Biohaven Pharmaceutical shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Covance beats Biohaven Pharmaceutical on 5 of the 8 factors compared between the two stocks.

About Covance

Covance Inc. is engaged in drug development services. The Company provides a range of early-stage and late-stage product development services to the pharmaceutical and biotechnology industries. The Company also provides laboratory testing services to the chemical, agrochemical and food industries. The Company operates in two segments: early development services, and late-stage development services. The early development services include lead optimization services, preclinical services and clinical pharmacology services. The late-stage development services include central laboratory, Phase II-IV clinical development, and market access services.

About Biohaven Pharmaceutical

Biohaven Pharmaceutical Holding Company Ltd. is a United States-based biopharmaceutical company. The Company is engaged in the identification and development of clinical-stage compounds targeting orphan neurologic indications and other neurological pathways. It has a portfolio of multiple late-stage drug candidates. Its pipeline includes BHV-0223, which is a formulation of a glutamate-modulating agent; BHV-4157, which is a new chemical entity (NCE) that modulates glutamate, and BHV-5000, which is an in-licensed investigational agent of the Company targeting N-Methyl-D-Aspartate (NMDA) receptor antagonism. Its clinical compound, trigriluzole, is indicated for neurodegenerative diseases and cancer indications, among others. Its pipeline also includes BHV-3000 and BHV-3500, which are in-licensed by the Company for a neurologic indication. It focuses on advancing other mechanistic approaches in orphan and neuroscience indications, and is exploring licenses for additional compounds.

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