Analyzing Rigel Pharmaceuticals (NASDAQ:RIGL) and Hypermarcas (OTCMKTS:HYPMY)

Hypermarcas (OTCMKTS:HYPMY) and Rigel Pharmaceuticals (NASDAQ:RIGL) are both medical companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, profitability and valuation.

Institutional and Insider Ownership

66.2% of Rigel Pharmaceuticals shares are owned by institutional investors. 9.0% of Rigel Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Hypermarcas and Rigel Pharmaceuticals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hypermarcas	0	0	0	1	4.00
Rigel Pharmaceuticals	1	3	3	0	2.29

Rigel Pharmaceuticals has a consensus price target of $43.20, suggesting a potential upside of 16.76%. Given Rigel Pharmaceuticals’ higher possible upside, analysts plainly believe Rigel Pharmaceuticals is more favorable than Hypermarcas.

Earnings and Valuation

This table compares Hypermarcas and Rigel Pharmaceuticals”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hypermarcas	$1.38 billion	2.27	$248.62 million	$0.23	21.48
Rigel Pharmaceuticals	$179.28 million	3.75	$17.49 million	$6.17	6.00

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

Profitability

This table compares Hypermarcas and Rigel Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hypermarcas	12.03%	6.89%	3.37%
Rigel Pharmaceuticals	40.17%	204.70%	57.42%

Volatility & Risk

Hypermarcas has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500. Comparatively, Rigel Pharmaceuticals has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500.

Summary

Rigel Pharmaceuticals beats Hypermarcas on 10 of the 15 factors compared between the two stocks.

About Hypermarcas

Hypera S.A. operates as a pharmaceutical company in Brazil. It offers prescription products under the Adacne, Addera, apri, AmpliumG, please, Celestamine, Celestone, Celestone Soluspan, Cizax, deciprax, Derive C Micro, Micro Drift, Dermotil Fusid, Digedrat, diprogent, Diprosalic, Diprosone, diprospan, Emprol XR, Flow, Garasone, Halobex, Lipanon, moon, Lydian, macrodantin, Max Sulid, milgamma, Mioflex A, nesina, Novotram, oximax, peridal, Peridal Suspension, PredSim, Pressaliv, Quadriderm, Rizi, Rizi M, softalm, tacroz, tinodin, umma, and velunid brands. The company also provides sun protection and moisturizing skin care products under the Mantecorp Skincare brands; similar products under the Doralgina, Dropy D, balance, Flavonid, histamin, NeoFresh, neolefrin, Neochemistry Vitamins, Neosorum, and Torsilax brand names; and consumer health products under the Apracur, Benegrip, Buscopan, Coristina D Pro, Engov, Epocler, Estomazil, and Neosaldina brands, as well as similar and generic drugs under the Neo Química brand. In addition, it offers nutritional and vitamin supplement products under the Tamarine, Vitasay, Biotônico Fontoura, and Zero-Cal brands; and generic medicines under the Hydroxyzine, Sodium Diclofenac, Dipyron, Ibuprofen, Losartan Potassium, Mal Dexchlorpheniramine, Naproxene, Paracetamol, Simethicon, Loratadine, Omeprazole, Tadalaphyl, and Desogestrel brand names. The company was formerly known as Hypermarcas S.A. and changed its name to Hypera S.A. in February 2018. Hypera S.A. was founded in 2001 and is headquartered in São Paulo, Brazil.

About Rigel Pharmaceuticals

Rigel Pharmaceuticals, Inc., a biotechnology company, engages in discovering, developing, and providing therapies that enhance the lives of patients with hematologic disorders and cancer. The company’s commercialized products include Tavalisse, an oral spleen tyrosine kinase inhibitor for the treatment of adult patients with chronic immune thrombocytopenia; Rezlidhia, a non-intensive monotherapy for the treatment of adult patients with relapsed or refractory (R/R) acute myeloid leukemia (AML) with a susceptible isocitrate dehydrogenase-1 (IDH1) mutation as detected by an FDA-approved test; and GAVRETO, a once daily, small molecule, oral, kinase inhibitor for the treatment of adult patients with metastatic rearranged during transfection (RET) fusion-positive non-small cell lung cancer, as well as for the treatment of adult and pediatric patients 12 years of age and older with advanced or metastatic RET fusion-positive thyroid cancer. It also develops R289, an oral IRAK1/4 Inhibitor, which is in Phase 1b clinical trials for the treatment of hematology-oncology, autoimmune, and inflammatory diseases; and a receptor-interacting serine/threonine-protein kinase 1 (RIPK1) inhibitor program in clinical development with partner Eli Lilly and Company. In addition, the company has product candidates in clinical development with partners BerGenBio ASA and Daiichi Sankyo. The company has strategic development collaboration with The University of Texas MD Anderson Cancer Center for the development of REZLIDHIA (Olutasidenib) in acute myeloid leukemia (AML) and other hematologic cancers. The company was incorporated in 1996 and is headquartered in South San Francisco, California.