Jazz Pharmaceuticals PLC (NASDAQ: JAZZ) and Ohr Pharmaceuticals (NASDAQ:OHRP) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.

Profitability

This table compares Jazz Pharmaceuticals PLC and Ohr Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Jazz Pharmaceuticals PLC 25.69% 22.75% 9.14%
Ohr Pharmaceuticals N/A -103.56% -85.09%

Earnings & Valuation

This table compares Jazz Pharmaceuticals PLC and Ohr Pharmaceuticals’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Jazz Pharmaceuticals PLC $1.54 billion 5.77 $758.97 million $6.45 22.93
Ohr Pharmaceuticals N/A N/A -$24.22 million ($0.70) -1.09

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

Analyst Ratings

This is a breakdown of current recommendations for Jazz Pharmaceuticals PLC and Ohr Pharmaceuticals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Jazz Pharmaceuticals PLC 0 3 16 0 2.84
Ohr Pharmaceuticals 0 1 1 0 2.50

Jazz Pharmaceuticals PLC currently has a consensus target price of $182.84, suggesting a potential upside of 23.63%. Ohr Pharmaceuticals has a consensus target price of $10.00, suggesting a potential upside of 1,215.79%. Given Ohr Pharmaceuticals’ higher possible upside, analysts plainly believe Ohr Pharmaceuticals is more favorable than Jazz Pharmaceuticals PLC.

Insider and Institutional Ownership

88.2% of Jazz Pharmaceuticals PLC shares are owned by institutional investors. Comparatively, 7.0% of Ohr Pharmaceuticals shares are owned by institutional investors. 4.3% of Jazz Pharmaceuticals PLC shares are owned by insiders. Comparatively, 17.4% of Ohr Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk & Volatility

Jazz Pharmaceuticals PLC has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500. Comparatively, Ohr Pharmaceuticals has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500.

Summary

Jazz Pharmaceuticals PLC beats Ohr Pharmaceuticals on 10 of the 12 factors compared between the two stocks.

About Jazz Pharmaceuticals PLC

Jazz Pharmaceuticals, Inc. is a specialty pharmaceutical company focusing on the development and commercialization of pharmaceutical products to meet unmet medical needs in neurology and psychiatry. As of December 31, 2009, the Company markets two products: Xyrem (sodium oxybate) for the treatment of both cataplexy and excessive daytime sleepiness in patients with narcolepsy; and Luvox CR (fluvoxamine maleate) for the treatment of both obsessive compulsive disorder and social anxiety disorder. Its marketed products and late-stage product candidate are Xyrem (sodium oxybate) oral solution, Luvox CR (fluvoxamine maleate) Extended-Release Capsules and JZP-6 (sodium oxybate). Its other product candidates in clinical development are oral tablet forms of sodium oxybate; JZP-8 (intranasal clonazepam); JZP-4 (elpetrigine), and JZP-7 (ropinirole gel).

About Ohr Pharmaceuticals

OHR Pharmaceutical, Inc., a pharmaceutical company, focuses on the development of novel therapeutics and delivery technologies for the treatment of ocular disease. Its lead clinical program is topical Squalamine, a small molecule anti-angiogenic drug, which could provide a non-invasive therapy to enhance vision outcomes. The company is evaluating Squalamine, which completed Phase II clinical trials for the treatment of retinal diseases, including wet-AMD, proliferative diabetic retinopathy, and retinal vein occlusion. Its preclinical pipeline of sustained release programs include sustained release formulations of small molecule and protein therapeutics for the treatment of ocular diseases, such as glaucoma, steroid induced glaucoma, ocular allergy, and retinal disease. OHR Pharmaceutical, Inc. is headquartered in New York, New York.

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