Teva Pharmaceutical Industries Limited (NYSE: TEVA) is one of 113 publicly-traded companies in the “Pharmaceuticals” industry, but how does it contrast to its rivals? We will compare Teva Pharmaceutical Industries Limited to related businesses based on the strength of its analyst recommendations, dividends, institutional ownership, earnings, profitability, valuation and risk.

Institutional and Insider Ownership

56.8% of Teva Pharmaceutical Industries Limited shares are owned by institutional investors. Comparatively, 43.4% of shares of all “Pharmaceuticals” companies are owned by institutional investors. 7.1% of Teva Pharmaceutical Industries Limited shares are owned by company insiders. Comparatively, 12.0% of shares of all “Pharmaceuticals” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

Teva Pharmaceutical Industries Limited pays an annual dividend of $0.94 per share and has a dividend yield of 5.9%. Teva Pharmaceutical Industries Limited pays out -15.4% of its earnings in the form of a dividend. As a group, “Pharmaceuticals” companies pay a dividend yield of 2.4% and pay out 82.4% of their earnings in the form of a dividend. Teva Pharmaceutical Industries Limited is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of recent ratings and price targets for Teva Pharmaceutical Industries Limited and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Teva Pharmaceutical Industries Limited 4 16 5 0 2.04
Teva Pharmaceutical Industries Limited Competitors 790 3411 5863 137 2.52

Teva Pharmaceutical Industries Limited currently has a consensus target price of $27.70, suggesting a potential upside of 73.80%. As a group, “Pharmaceuticals” companies have a potential upside of 21.58%. Given Teva Pharmaceutical Industries Limited’s higher possible upside, equities research analysts clearly believe Teva Pharmaceutical Industries Limited is more favorable than its rivals.

Volatility & Risk

Teva Pharmaceutical Industries Limited has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500. Comparatively, Teva Pharmaceutical Industries Limited’s rivals have a beta of 0.87, suggesting that their average stock price is 13% less volatile than the S&P 500.

Profitability

This table compares Teva Pharmaceutical Industries Limited and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Teva Pharmaceutical Industries Limited -25.18% 15.96% 5.31%
Teva Pharmaceutical Industries Limited Competitors -3,077.13% -56.23% -9.61%

Earnings and Valuation

This table compares Teva Pharmaceutical Industries Limited and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Teva Pharmaceutical Industries Limited $23.37 billion $7.42 billion -2.60
Teva Pharmaceutical Industries Limited Competitors $7.79 billion $2.46 billion -0.14

Teva Pharmaceutical Industries Limited has higher revenue and earnings than its rivals. Teva Pharmaceutical Industries Limited is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Teva Pharmaceutical Industries Limited beats its rivals on 10 of the 15 factors compared.

About Teva Pharmaceutical Industries Limited

Teva Pharmaceutical Industries Limited is a pharmaceutical company. The Company is engaged in developing, producing and marketing generic medicines and a portfolio of specialty medicines. The Company operates through two segments: Generic medicines and Specialty medicines. The Company develops, manufactures and sells generic medicines in a range of dosage forms, including tablets, capsules, injectables, inhalants, liquids, ointments and creams. Its specialty medicines business focuses on delivering a range of solutions to patients and providers through medicines, devices and services in various regions and markets around the world. Its specialty medicines business includes its core therapeutic areas of central nervous system (CNS) and respiratory medicines with a focus on asthma and chronic obstructive pulmonary disease. It also has specialty products in oncology, women’s health and selected other areas.

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