Critical Survey: Boston Scientific (NYSE:BSX) versus Veru (NASDAQ:VERU)

Boston Scientific (NYSE:BSX) and Veru (NASDAQ:VERU) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, valuation, institutional ownership and earnings.

Risk & Volatility

Boston Scientific has a beta of 0.56, indicating that its share price is 44% less volatile than the S&P 500. Comparatively, Veru has a beta of -1.14, indicating that its share price is 214% less volatile than the S&P 500.

Valuation & Earnings

This table compares Boston Scientific and Veru”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Boston Scientific	$20.07 billion	3.60	$2.90 billion	$2.39	20.36
Veru	$16.89 million	3.23	-$22.73 million	($0.89)	-3.82

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

Profitability

This table compares Boston Scientific and Veru’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Boston Scientific	17.29%	19.17%	10.77%
Veru	N/A	-54.72%	-39.09%

Insider and Institutional Ownership

89.1% of Boston Scientific shares are held by institutional investors. Comparatively, 47.2% of Veru shares are held by institutional investors. 0.3% of Boston Scientific shares are held by company insiders. Comparatively, 14.2% of Veru shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Boston Scientific and Veru, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Boston Scientific	0	5	22	1	2.86
Veru	1	0	3	0	2.50

Boston Scientific presently has a consensus target price of $85.92, indicating a potential upside of 76.57%. Veru has a consensus target price of $23.00, indicating a potential upside of 576.47%. Given Veru’s higher probable upside, analysts clearly believe Veru is more favorable than Boston Scientific.

Summary

Boston Scientific beats Veru on 13 of the 15 factors compared between the two stocks.

About Boston Scientific

Boston Scientific Corporation develops, manufactures, and markets medical devices for use in various interventional medical specialties worldwide. It operates through two segments, MedSurg and Cardiovascular. The company offers devices to diagnose and treat gastrointestinal and pulmonary conditions, such as resolution clips, biliary stent systems, stents and electrocautery enhanced delivery systems, direct visualization systems, digital catheters, and single-use duodenoscopes; devices to treat urological conditions, including ureteral stents, catheters, baskets, guidewires, sheaths, balloons, single-use digital flexible ureteroscopes, holmium laser systems, artificial urinary sphincter, laser system, fiber, and hydrogel systems; and devices to treat neurological movement disorders and manage chronic pain, such as spinal cord stimulator system, proprietary programming software, radiofrequency generator, indirect decompression systems, practice optimization tools, and deep brain stimulation system. It also provides technologies for diagnosing and treating coronary artery disease and aortic valve conditions; WATCHMAN FLX, a Left Atrial Appendage Closure Device; and implantable devices that monitor the heart and deliver electricity to treat cardiac abnormalities, such as cardioverter and cardiac resynchronization therapy defibrillators, MRI S-ICD systems, cardiac resynchronization therapy pacemakers, quadripolar LV leads, ICD leads, pacing leads, remote patient management systems, insertable cardiac monitor systems, and remote cardiac monitoring systems. In addition, the company offers diagnosis and treatment of rate and rhythm disorders of the heart; peripheral arterial and venous diseases; and products to diagnose, treat and ease forms of cancer. The company was incorporated in 1979 and is headquartered in Marlborough, Massachusetts.

About Veru

Veru Inc., a late clinical stage biopharmaceutical company, focuses on developing medicines for treatment of metabolic diseases, oncology, and acute respiratory distress syndrome (ARDS). Its marketed products comprise FC2 female condom for the dual protection against unplanned pregnancy and the transmission of sexually transmitted infections. The company’s development program includes enobosarm, a selective androgen receptor modulator for treatment of augment fat loss and to prevent muscle loss in sarcopenic obese and overweight elderly patients; Enobosarm, a selective androgen receptor modulator for the treatment of AR+ ER+ HER2- metastatic breast cancer; and sabizabulin, a microtubule disruptor for the treatment of hospitalized patients with viral lung infection on oxygen support who are at high risk for viral induced ARDS and death. The company was formerly known as The Female Health Company and changed its name to Veru Inc. in July 2017. Veru Inc. was incorporated in 1971 and is headquartered in Miami, Florida.