Galena Biopharma (NASDAQ: GALE) and Abbott Laboratories (NYSE:ABT) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, earnings, analyst recommendations, risk and profitability.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Galena Biopharma and Abbott Laboratories, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Galena Biopharma 0 2 0 0 2.00
Abbott Laboratories 0 5 9 0 2.64

Galena Biopharma presently has a consensus target price of $4.00, suggesting a potential upside of 1,233.33%. Abbott Laboratories has a consensus target price of $57.64, suggesting a potential upside of 4.71%. Given Galena Biopharma’s higher probable upside, research analysts plainly believe Galena Biopharma is more favorable than Abbott Laboratories.

Valuation & Earnings

This table compares Galena Biopharma and Abbott Laboratories’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Galena Biopharma $9.32 million 1.24 -$23.54 million ($1.76) -0.17
Abbott Laboratories $20.85 billion 4.60 $1.40 billion $1.21 45.50

Abbott Laboratories has higher revenue and earnings than Galena Biopharma. Galena Biopharma is trading at a lower price-to-earnings ratio than Abbott Laboratories, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Galena Biopharma and Abbott Laboratories’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Galena Biopharma N/A -76.75% -28.16%
Abbott Laboratories 8.37% 13.98% 6.09%

Dividends

Abbott Laboratories pays an annual dividend of $1.06 per share and has a dividend yield of 1.9%. Galena Biopharma does not pay a dividend. Abbott Laboratories pays out 87.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Abbott Laboratories has increased its dividend for 44 consecutive years.

Risk & Volatility

Galena Biopharma has a beta of 1.99, meaning that its stock price is 99% more volatile than the S&P 500. Comparatively, Abbott Laboratories has a beta of 1.55, meaning that its stock price is 55% more volatile than the S&P 500.

Institutional & Insider Ownership

20.5% of Galena Biopharma shares are held by institutional investors. Comparatively, 71.4% of Abbott Laboratories shares are held by institutional investors. 0.8% of Galena Biopharma shares are held by company insiders. Comparatively, 0.8% of Abbott Laboratories shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Abbott Laboratories beats Galena Biopharma on 12 of the 15 factors compared between the two stocks.

Galena Biopharma Company Profile

Galena Biopharma, Inc. is a biopharmaceutical company. The Company focuses on developing and commercializing targeted oncology therapeutics that address unmet medical needs. The Company’s development portfolio ranges from mid- to late-stage clinical assets, including cancer immunotherapy program led by NeuVax (nelipepimut-S), GALE-301 and GALE-302. The Company’s NeuVax is in Phase III breast cancer clinical trial with several concurrent Phase II trials ongoing both as a single agent and in combination with other therapies. GALE-301 is in a Phase IIa clinical trial in ovarian and endometrial cancers and in a Phase Ib clinical trial given sequentially with GALE-302. The Company’s therapies utilize an immunodominant peptide combined with the immune adjuvant, recombinant human granulocyte macrophage-colony stimulating factor (rhGM-CSF, Leukine), and work by harnessing the patient’s own immune system to seek out and attack any residual cancer cells.

Abbott Laboratories Company Profile

Abbott Laboratories is engaged in the discovery, development, manufacture and sale of a range of healthcare products. The Company operates through four segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products and Vascular Products. Its Established Pharmaceutical Products include a range of branded generic pharmaceuticals manufactured around the world and marketed and sold outside the United States. Its Diagnostic Products include a range of diagnostic systems and tests. Its Nutritional Products include a range of pediatric and adult nutritional products. Its Company’s Vascular Products include a range of coronary, endovascular, vessel closure and structural heart devices for the treatment of vascular disease. The Company, through St. Jude Medical, Inc., also offers products, such as rhythm management products, electrophysiology products, heart failure related products, vascular products, structural heart products and neuromodulation products.

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