Bristol-Myers Squibb (NYSE: BMY) and Veru (NASDAQ:VERU) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, dividends, profitability, earnings and valuation.

Volatility and Risk

Bristol-Myers Squibb has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500. Comparatively, Veru has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500.

Valuation and Earnings

This table compares Bristol-Myers Squibb and Veru’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bristol-Myers Squibb $19.43 billion 5.26 $4.46 billion $2.54 24.57
Veru $22.13 million 2.48 $340,000.00 ($0.19) -5.42

Bristol-Myers Squibb has higher revenue and earnings than Veru. Veru is trading at a lower price-to-earnings ratio than Bristol-Myers Squibb, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

69.8% of Bristol-Myers Squibb shares are owned by institutional investors. Comparatively, 4.7% of Veru shares are owned by institutional investors. 0.2% of Bristol-Myers Squibb shares are owned by insiders. Comparatively, 10.9% of Veru shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Bristol-Myers Squibb and Veru’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bristol-Myers Squibb 20.56% 32.41% 14.66%
Veru -42.02% -16.78% -10.64%

Dividends

Bristol-Myers Squibb pays an annual dividend of $1.56 per share and has a dividend yield of 2.5%. Veru does not pay a dividend. Bristol-Myers Squibb pays out 61.4% of its earnings in the form of a dividend. Bristol-Myers Squibb has raised its dividend for 7 consecutive years.

Analyst Ratings

This is a summary of recent ratings and target prices for Bristol-Myers Squibb and Veru, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bristol-Myers Squibb 1 8 9 0 2.44
Veru 0 0 2 0 3.00

Bristol-Myers Squibb presently has a consensus price target of $63.92, indicating a potential upside of 2.41%. Veru has a consensus price target of $5.00, indicating a potential upside of 385.44%. Given Veru’s stronger consensus rating and higher probable upside, analysts clearly believe Veru is more favorable than Bristol-Myers Squibb.

Summary

Bristol-Myers Squibb beats Veru on 11 of the 16 factors compared between the two stocks.

Bristol-Myers Squibb Company Profile

Bristol-Myers Squibb Company is engaged in the discovery, development, licensing, manufacturing, marketing, distribution and sale of biopharmaceutical products. The Company’s pharmaceutical products include chemically synthesized drugs, or small molecules, and products produced from biological processes called biologics. Small molecule drugs are administered orally in the form of a pill or tablet. Biologics are administered to patients through injections or by infusion. The Company’s products include Empliciti, Opdivo, Sprycel, Yervoy, Eliquis, Orencia, Baraclude, Hepatitis C Franchise, Reyataz Franchise and Sustiva Franchise. It offers products for a range of therapeutic classes, which include virology, including human immunodeficiency virus (HIV) infection; oncology; immunoscience, and cardiovascular. Its products are sold to wholesalers, retail pharmacies, hospitals, government entities and the medical profession across the world.

Veru Company Profile

Veru Inc., formerly The Female Health Company, is a therapeutics company focused on developing and commercializing pharmaceuticals and devices in men’s and women’s health and oncology. The Company is engaged in the development, manufacture and marketing of consumer healthcare products. The Company has three divisions: Pharmaceutical and Devices, Consumer Health Products and Public Sector. For men, product and product candidates are in the areas of benign prostatic hyperplasia, male infertility, amelioration of side effects of hormonal prostate cancer therapies, prostate cancer, gout and sexual dysfunction. Women’s Health has product candidates for female sexual health, and advanced breast and ovarian cancers. It manufactures, markets and sells the FC2 Female Condom. FC2 provides dual protection against unintended pregnancy and sexually transmitted infections (STIs), including human immunodeficiency virus/acquired immune deficiency syndrome (HIV/AIDS).

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