AbbVie (NYSE: ABBV) and Supernus Pharmaceuticals (NASDAQ:SUPN) are both mid-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, analyst recommendations, earnings, valuation and profitability.

Dividends

AbbVie pays an annual dividend of $2.56 per share and has a dividend yield of 3.5%. Supernus Pharmaceuticals does not pay a dividend. AbbVie pays out 62.9% of its earnings in the form of a dividend. Supernus Pharmaceuticals has raised its dividend for 44 consecutive years.

Profitability

This table compares AbbVie and Supernus Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AbbVie 24.77% 150.27% 12.52%
Supernus Pharmaceuticals 41.10% 30.73% 19.48%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for AbbVie and Supernus Pharmaceuticals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AbbVie 0 7 6 1 2.57
Supernus Pharmaceuticals 0 2 4 0 2.67

AbbVie currently has a consensus price target of $76.31, suggesting a potential upside of 5.28%. Supernus Pharmaceuticals has a consensus price target of $48.33, suggesting a potential upside of 9.97%. Given Supernus Pharmaceuticals’ stronger consensus rating and higher possible upside, analysts plainly believe Supernus Pharmaceuticals is more favorable than AbbVie.

Institutional & Insider Ownership

67.7% of AbbVie shares are owned by institutional investors. Comparatively, 92.8% of Supernus Pharmaceuticals shares are owned by institutional investors. 0.2% of AbbVie shares are owned by insiders. Comparatively, 6.7% of Supernus Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares AbbVie and Supernus Pharmaceuticals’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
AbbVie $26.71 billion 4.33 $11.57 billion $4.07 17.81
Supernus Pharmaceuticals $252.59 million 8.82 $82.36 million $1.95 22.54

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

Risk and Volatility

AbbVie has a beta of 1.5, indicating that its share price is 50% more volatile than the S&P 500. Comparatively, Supernus Pharmaceuticals has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500.

Summary

Supernus Pharmaceuticals beats AbbVie on 10 of the 18 factors compared between the two stocks.

AbbVie Company Profile

AbbVie Inc. (AbbVie) is a research-based biopharmaceutical company. The Company is engaged in the discovery, development, manufacture and sale of a range of pharmaceutical products. Its products are focused on treating conditions, such as chronic autoimmune diseases in rheumatology, gastroenterology and dermatology; oncology, including blood cancers; virology, including hepatitis C virus (HCV) and human immunodeficiency virus (HIV); neurological disorders, such as Parkinson’s disease and multiple sclerosis; metabolic diseases, including thyroid disease and complications associated with cystic fibrosis, and other serious health conditions. It offers products in various categories, including HUMIRA (adalimumab), Oncology products, Virology Products, Additional Virology products, Metabolics/Hormones products, Endocrinology products and other products, which include Duopa and Duodopa (carbidopa and levodopa), Anesthesia products and ZINBRYTA (daclizumab).

Supernus Pharmaceuticals Company Profile

Supernus Pharmaceuticals, Inc. is a pharmaceutical company focused on developing and commercializing products for the treatment of central nervous system diseases. The Company offers Oxtellar XR (extended-release oxcarbazepine) and Trokendi XR (extended-release topiramate), its two treatments for patients with epilepsy. In addition, it is developing multiple product candidates in psychiatry to address unmet medical needs and market opportunities for the treatment of impulsive aggression (IA) and for the treatment of attention deficit hyperactivity disorder (ADHD). It is developing SPN-810 (molindone hydrochloride) to treat IA in patients having ADHD. It is developing SPN-812 (viloxazine hydrochloride) as a candidate to treat patients having ADHD. The Company’s neurology portfolio consists of Oxtellar XR and Trokendi XR, which are the first once-daily extended release oxcarbazepine and topiramate products, respectively, indicated for epilepsy in the United States market.

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