Analyzing Aralez Pharmaceuticals (ARLZ) & Astrazeneca PLC (AZN)
Aralez Pharmaceuticals (NASDAQ: ARLZ) and Astrazeneca PLC (NYSE:AZN) are both medical companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, dividends, valuation, institutional ownership, profitability, risk and analyst recommendations.
Earnings & Valuation
This table compares Aralez Pharmaceuticals and Astrazeneca PLC’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Aralez Pharmaceuticals||$87.22 million||0.87||-$55.02 million||($1.64)||-0.70|
|Astrazeneca PLC||$21.74 billion||3.39||$5.91 billion||$3.05||9.55|
Astrazeneca PLC has higher revenue and earnings than Aralez Pharmaceuticals. Aralez Pharmaceuticals is trading at a lower price-to-earnings ratio than Astrazeneca PLC, indicating that it is currently the more affordable of the two stocks.
Astrazeneca PLC pays an annual dividend of $1.37 per share and has a dividend yield of 4.7%. Aralez Pharmaceuticals does not pay a dividend. Astrazeneca PLC pays out 44.9% of its earnings in the form of a dividend.
This is a summary of recent recommendations and price targets for Aralez Pharmaceuticals and Astrazeneca PLC, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Aralez Pharmaceuticals presently has a consensus target price of $8.00, suggesting a potential upside of 601.75%. Astrazeneca PLC has a consensus target price of $36.09, suggesting a potential upside of 23.94%. Given Aralez Pharmaceuticals’ stronger consensus rating and higher probable upside, research analysts plainly believe Aralez Pharmaceuticals is more favorable than Astrazeneca PLC.
Insider and Institutional Ownership
33.8% of Aralez Pharmaceuticals shares are owned by institutional investors. Comparatively, 14.3% of Astrazeneca PLC shares are owned by institutional investors. 6.7% of Aralez Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This table compares Aralez Pharmaceuticals and Astrazeneca PLC’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
Aralez Pharmaceuticals has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500. Comparatively, Astrazeneca PLC has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500.
Astrazeneca PLC beats Aralez Pharmaceuticals on 9 of the 15 factors compared between the two stocks.
About Aralez Pharmaceuticals
Aralez Pharmaceuticals Inc. is a Canada-based specialty pharmaceutical company. The Company focuses on acquiring, developing and commercializing products in cardiovascular, pain and other areas. The Company’s products include Fibricor, Cambia, Fiorinal, Fiorinal C, Soriatane, Bezalip SR, NeoVisc, Uracyst, Durela, Proferrin, Resultz and Collatamp G. Its development products include YOSPRALA and Bilastine. Fibricor (fenofibric acid) is indicated as a complementary therapy along with diet for the treatment of hypertriglyceridemia, and as a complementary therapy along with diet to reduce elevated low-density lipoprotein cholesterol (LDL-C), total cholesterol (Total-C), triglycerides (TG) and apolipoprotein B (Apo B). Fibricor is also used to increase high-density lipoprotein (HDL) cholesterol (HDL-C) in patients with hypercholesterolemia or mixed dyslipidemia. Cambia (diclofenac potassium for oral solution) is a non-steroidal anti-inflammatory drug (NSAID).
About Astrazeneca PLC
AstraZeneca PLC (AstraZeneca) is a biopharmaceutical company. The Company focuses on discovery and development of products, which are then manufactured, marketed and sold. The Company focuses on three main therapy areas: Oncology, Cardiovascular & Metabolic Disease (CVMD) and Respiratory, while selectively pursuing therapies in Autoimmunity, Infection and Neuroscience. In CVMD, it is expanding its portfolio into the cardiovascular-renal area with late-stage assets, such as ZS-9 and roxadustat, as well as investing to explore the benefits of its SGLT2 and GLP-1 franchises in chronic kidney disease (CKD) and heart failure (HF). The Company has approximately 40 projects in Phase I, including 29 new molecular entities (NMEs), and 11 oncology combination projects. It has approximately 40 projects in Phase II, including 25 NMEs; four significant additional indications for projects that have reached phase II, and seven oncology combination projects.
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