Analyzing China SXT Pharmaceuticals (NASDAQ:SXTC) & Theravance Biopharma (NASDAQ:TBPH)

China SXT Pharmaceuticals (NASDAQ:SXTC) and Theravance Biopharma (NASDAQ:TBPH) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, analyst recommendations, valuation, dividends, risk and profitability.

Analyst Ratings

This is a summary of recent ratings and recommmendations for China SXT Pharmaceuticals and Theravance Biopharma, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China SXT Pharmaceuticals	1	0	0	0	1.00
Theravance Biopharma	0	2	3	2	3.00

Theravance Biopharma has a consensus target price of $27.80, indicating a potential upside of 41.98%. Given Theravance Biopharma’s stronger consensus rating and higher possible upside, analysts plainly believe Theravance Biopharma is more favorable than China SXT Pharmaceuticals.

Profitability

This table compares China SXT Pharmaceuticals and Theravance Biopharma’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
China SXT Pharmaceuticals	N/A	N/A	N/A
Theravance Biopharma	36.53%	12.20%	6.33%

Earnings and Valuation

This table compares China SXT Pharmaceuticals and Theravance Biopharma”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
China SXT Pharmaceuticals	$1.74 million	1.56	-$3.30 million	N/A	N/A
Theravance Biopharma	$64.38 million	15.41	-$56.42 million	$0.57	34.35

China SXT Pharmaceuticals has higher earnings, but lower revenue than Theravance Biopharma.

Insider and Institutional Ownership

5.0% of China SXT Pharmaceuticals shares are held by institutional investors. Comparatively, 99.1% of Theravance Biopharma shares are held by institutional investors. 4.0% of China SXT Pharmaceuticals shares are held by company insiders. Comparatively, 6.9% of Theravance Biopharma shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility & Risk

China SXT Pharmaceuticals has a beta of 1.65, suggesting that its stock price is 65% more volatile than the S&P 500. Comparatively, Theravance Biopharma has a beta of 0.15, suggesting that its stock price is 85% less volatile than the S&P 500.

Summary

Theravance Biopharma beats China SXT Pharmaceuticals on 11 of the 13 factors compared between the two stocks.

About China SXT Pharmaceuticals

China SXT Pharmaceuticals, Inc., a pharmaceutical company, engages in the research, development, manufacture, marketing, and sale of traditional Chinese medicine pieces (TCMP) in China. The company offers advanced, fine, and regular TCMP products, and raw medicinal material, such as ChenXiang, SanQiFen, HongQi, SuMu, JiangXiang, CuYanHuSuo, XiaTianWu, LuXueJing, XueJie, ChaoSuanZaoRen, HongQuMi, ChuanBeiMu, HuangShuKuiHua, WuWeiZi, DingXiang, RenShen, QingGuo, JueMingZi, and ShaRen. It provides its products under the Suxuantang, Hui Chun Tang, and Tong Ren Tang brands. The company had an end-customer base of pharmaceutical companies, chain pharmacies, and hospitals in 10 provinces and municipalities in China. China SXT Pharmaceuticals, Inc. was founded in 2005 and is headquartered in Taizhou, China.

About Theravance Biopharma

Theravance Biopharma, Inc. is a diversified biopharmaceutical company primarily focused on the discovery, development and commercialization of organ-selective medicines. Its purpose is to pioneer a new generation of small molecule drugs designed to better meet patient needs. Its research is focused in the areas of inflammation and immunology.
In pursuit of its purpose, Theravance Biopharma applies insights and innovation at each stage of its business and utilizes its internal capabilities and those of partners around the world. The Company applies organ-selective expertise to target disease biologically, to discover and develop medicines that may expand the therapeutic index with the goal of maximizing efficacy and limiting systemic side effects. These efforts leverage years of experience in developing lung-selective medicines to treat respiratory disease, including FDA-approved YUPELRI® (revefenacin) inhalation solution indicated for the maintenance treatment of patients with chronic obstructive pulmonary disease (COPD). Its pipeline of internally discovered programs is targeted to address significant patient needs.
Theravance Biopharma has an economic interest in potential future payments from Glaxo Group Limited or one of its affiliates (GSK) pursuant to its agreements with Innoviva, Inc. relating to certain programs, including TRELEGY.
For more information, please visit www.theravance.com.