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

Profitability

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

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

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Supernus Pharmaceuticals $252.59 million 9.51 $82.36 million $1.95 24.31
AbbVie $26.71 billion 4.50 $11.57 billion $4.07 18.53

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.

Volatility and Risk

Supernus Pharmaceuticals has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500. Comparatively, AbbVie has a beta of 1.48, suggesting that its stock price is 48% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Supernus Pharmaceuticals and AbbVie, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Supernus Pharmaceuticals 0 2 4 0 2.67
AbbVie 0 7 5 1 2.54

Supernus Pharmaceuticals presently has a consensus target price of $48.33, suggesting a potential upside of 1.97%. AbbVie has a consensus target price of $75.83, suggesting a potential upside of 0.55%. Given Supernus Pharmaceuticals’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Supernus Pharmaceuticals is more favorable than AbbVie.

Dividends

AbbVie pays an annual dividend of $2.56 per share and has a dividend yield of 3.4%. Supernus Pharmaceuticals does not pay a dividend. AbbVie pays out 62.9% of its earnings in the form of a dividend. AbbVie has increased its dividend for 44 consecutive years.

Institutional & Insider Ownership

95.4% of Supernus Pharmaceuticals shares are held by institutional investors. Comparatively, 68.3% of AbbVie shares are held by institutional investors. 6.7% of Supernus Pharmaceuticals shares are held by company insiders. Comparatively, 0.2% of AbbVie shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

About Supernus Pharmaceuticals

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.

About AbbVie

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).

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