RA PHARMCTL INC (NASDAQ: RARX) and China Biologic Products (NASDAQ:CBPO) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, risk, institutional ownership, profitability, analyst recommendations and valuation.

Earnings & Valuation

This table compares RA PHARMCTL INC and China Biologic Products’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
RA PHARMCTL INC N/A N/A -$42.07 million ($16.01) -0.90
China Biologic Products $344.89 million 7.52 $155.64 million $3.87 24.60

China Biologic Products has higher revenue and earnings than RA PHARMCTL INC. RA PHARMCTL INC is trading at a lower price-to-earnings ratio than China Biologic Products, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

66.3% of RA PHARMCTL INC shares are held by institutional investors. Comparatively, 72.8% of China Biologic Products shares are held by institutional investors. 14.5% of RA PHARMCTL INC shares are held by insiders. Comparatively, 2.7% of China Biologic Products shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for RA PHARMCTL INC and China Biologic Products, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RA PHARMCTL INC 0 0 4 0 3.00
China Biologic Products 0 1 2 0 2.67

RA PHARMCTL INC presently has a consensus target price of $26.75, suggesting a potential upside of 85.25%. China Biologic Products has a consensus target price of $137.50, suggesting a potential upside of 44.45%. Given RA PHARMCTL INC’s stronger consensus rating and higher possible upside, analysts plainly believe RA PHARMCTL INC is more favorable than China Biologic Products.

Profitability

This table compares RA PHARMCTL INC and China Biologic Products’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
RA PHARMCTL INC N/A -64.75% -44.33%
China Biologic Products 31.55% 21.86% 18.83%

Summary

China Biologic Products beats RA PHARMCTL INC on 7 of the 11 factors compared between the two stocks.

About RA PHARMCTL INC

Ra Pharmaceuticals, Inc. is a United States-based clinical-stage biopharmaceutical company. The Company focuses on the development of therapeutics for diseases of complement dysregulation and a range of orphan indications. It utilizes small molecules and peptide approaches to address pathological targets in the complement cascade. It has leveraged the Extreme Diversity peptide chemistry platform to develop a portfolio of products that selectively inhibit the complement system and other immune targets. Its main program, RA101495, is a macrocyclic peptide inhibitor of complement component 5 (C5), which is in Phase I stage of development for the treatment of paroxysmal nocturnal hemoglobinuria (PNH). RA101495 binds a site on the C5 protein to inhibit cleavage into C5a and C5b, thereby preventing red blood cell lysis by inhibiting the production and assembly of the membrane attack complex (MAC). RA101495 is being developed as an alternative to eculizumab therapy for patients with PNH.

About China Biologic Products

China Biologic Products Holdings, Inc. is a biopharmaceutical company. The Company is principally engaged in the research, development, manufacturing and sales of human plasma-based biopharmaceutical products in China. It operates through the manufacture and sales of human plasma products segment. China Biologic has a product portfolio with over 20 various dosage forms of plasma products and other biopharmaceutical products across nine categories.The Company’s products include human albumin, human immunoglobulin, immunoglobulin for intravenous injection (IVIG), human hepatitis B immunoglobulin, human rabies immunoglobulin, human tetanus immunoglobulin, placenta polypeptide, Factor VIII and human prothrombin complex concentrate (PCC).

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