United Therapeutics (NASDAQ:UTHR – Get Free Report) and Journey Medical (NASDAQ:DERM – Get Free Report) are both medical companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, institutional ownership, valuation, dividends and profitability.
Risk & Volatility
United Therapeutics has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500. Comparatively, Journey Medical has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500.
Insider and Institutional Ownership
94.1% of United Therapeutics shares are owned by institutional investors. Comparatively, 7.3% of Journey Medical shares are owned by institutional investors. 10.3% of United Therapeutics shares are owned by company insiders. Comparatively, 15.0% of Journey Medical shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| United Therapeutics | 40.44% | 19.33% | 16.73% |
| Journey Medical | -14.76% | -52.03% | -11.28% |
Earnings & Valuation
This table compares United Therapeutics and Journey Medical”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| United Therapeutics | $2.88 billion | 4.45 | $1.20 billion | $25.06 | 11.34 |
| Journey Medical | $56.13 million | 2.91 | -$14.67 million | ($0.39) | -17.95 |
United Therapeutics has higher revenue and earnings than Journey Medical. Journey Medical is trading at a lower price-to-earnings ratio than United Therapeutics, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for United Therapeutics and Journey Medical, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| United Therapeutics | 0 | 4 | 9 | 0 | 2.69 |
| Journey Medical | 0 | 0 | 4 | 1 | 3.20 |
United Therapeutics presently has a consensus price target of $393.08, suggesting a potential upside of 38.36%. Journey Medical has a consensus price target of $9.88, suggesting a potential upside of 41.07%. Given Journey Medical’s stronger consensus rating and higher probable upside, analysts plainly believe Journey Medical is more favorable than United Therapeutics.
Summary
United Therapeutics beats Journey Medical on 10 of the 15 factors compared between the two stocks.
About United Therapeutics
United Therapeutics Corporation, a biotechnology company, engages in the development and commercialization of products to address the unmet medical needs of patients with chronic and life-threatening diseases in the United States and internationally. The company offers Tyvaso DPI, an inhaled dry powder via pre-filled and single-use cartridges; Tyvaso, an inhaled solution via ultrasonic nebulizer; Remodulin (treprostinil) injection to treat patients with pulmonary arterial hypertension (PAH) to diminish symptoms associated with exercise; Orenitram, a tablet dosage form of treprostinil, to delay disease progression and improve exercise capacity in PAH patients; and Adcirca, an oral PDE-5 inhibitor to enhance the exercise ability in PAH patients. It also markets and sells Unituxin (dinutuximab) injection, a monoclonal antibody for treating high-risk neuroblastoma; and Remunity Pump, which contains a pump and separate controller for Remodulin. In addition, the company engages in developing RemoPro and Ralinepag for the treatment of PAH; Aurora-GT, a gene therapy product to rebuild the blood vessels in the lungs; and Nebulized Tyvaso, for the treatment of idiopathic pulmonary fibrosis, as well as xenografts, which are development-stage organ products. It has licensing and collaboration agreements with DEKA Research & Development Corp. to develop a semi-disposable system for the subcutaneous delivery of treprostinil; MannKind Corporation to develop and license treprostinil inhalation powder and the Dreamboat device; and Arena Pharmaceuticals, Inc. to develop Ralinepag. The company was incorporated in 1996 and is headquartered in Silver Spring, Maryland.
About Journey Medical
Journey Medical Corporation focuses on the development and commercialization of pharmaceutical products for the treatment of dermatological conditions in the United States. The company's marketed products include Qbrexza, a medicated cloth towelette for the treatment of primary axillary hyperhidrosis; Accutane, an oral isotretinoin drug to treat severe recalcitrant nodular acne; and Amzeeq, a topical formulation of minocycline for the treatment of inflammatory lesions of non-nodular moderate to severe acne vulgaris. It also offers Zilxi, a topical minocycline treatment for inflammatory lesions of rosacea; Exelderm cream and solution an antifungal intended for topical use; Targadox, an oral doxycycline drug for adjunctive therapy for severe acne; and Luxamend, a water-based emulsion formulated to provide a moist healing environment for superficial wounds; minor cuts or scrapes; dermal ulcers; donor sites; first- and second-degree burns, including sunburns; and radiation dermatitis. In addition, the company sells sulconazole nitrate cream and solution indicated for the treatment of tinea cruris, tinea corporis, and tinea versicolor; and doxycycline hyclate tablets, as an adjunctive therapy for severe acne. The company was formerly known as Coronado Dermatology, Inc. and changed its name to Journey Medical Corporation. Journey Medical Corporation was incorporated in 2014 and is headquartered in Scottsdale, Arizona. Journey Medical Corporation is a subsidiary of Fortress Biotech, Inc.
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