Celgene (NASDAQ: CELG) and Teligent (NASDAQ:TLGT) are both medical companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, analyst recommendations, profitability and institutional ownership.

Institutional & Insider Ownership

79.8% of Celgene shares are held by institutional investors. Comparatively, 70.8% of Teligent shares are held by institutional investors. 1.0% of Celgene shares are held by insiders. Comparatively, 22.6% of Teligent shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and price targets for Celgene and Teligent, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Celgene 1 10 19 1 2.65
Teligent 0 2 1 0 2.33

Celgene currently has a consensus target price of $136.78, indicating a potential upside of 27.76%. Teligent has a consensus target price of $7.00, indicating a potential upside of 86.67%. Given Teligent’s higher probable upside, analysts plainly believe Teligent is more favorable than Celgene.

Valuation & Earnings

This table compares Celgene and Teligent’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Celgene $11.23 billion 7.51 $2.00 billion $4.21 25.43
Teligent $66.88 million 2.99 -$11.98 million ($0.23) -16.30

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

Volatility and Risk

Celgene has a beta of 1.78, indicating that its share price is 78% more volatile than the S&P 500. Comparatively, Teligent has a beta of 1.34, indicating that its share price is 34% more volatile than the S&P 500.

Profitability

This table compares Celgene and Teligent’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Celgene 27.36% 63.80% 17.45%
Teligent -16.95% -6.51% -1.92%

Summary

Celgene beats Teligent on 12 of the 14 factors compared between the two stocks.

Celgene Company Profile

Celgene Corporation is an integrated global biopharmaceutical company. The Company, together with its subsidiaries, is engaged in the discovery, development and commercialization of therapies for the treatment of cancer and inflammatory diseases through solutions in protein homeostasis, immuno-oncology, epigenetics, immunology and neuro-inflammation. Its commercial-stage products include REVLIMID (lenalidomide), POMALYST/IMNOVID (pomalidomide), OTEZLA (apremilast), ABRAXANE (paclitaxel albumin-bound particles for injectable suspension), VIDAZA, azacitidine for injection (generic version of VIDAZA) and THALOMID (thalidomide). Its clinical trial activity includes trials across the disease areas of hematology, solid tumors, and inflammation and immunology. The Company also markets ISTODAX, which is an epigenetic modifier. The Company is also evaluating AG-221 (enasidenib) in combination with VIDAZA in newly diagnosed acute myeloid leukemia with isocitrate dehydrogenase-2 mutations.

Teligent Company Profile

Teligent, Inc. is a specialty generic pharmaceutical company. Under the Company’s own label, it markets and sells generic injectable pharmaceutical products in the United States and Canada. In the United States it marketed 16 generic topical pharmaceutical products and four branded generic pharmaceutical products, as of December 31, 2016. It provides development, formulation and manufacturing services to the pharmaceutical, over-the-counter (OTC) and cosmetic industries. It focuses on developing, manufacturing and marketing a portfolio of generic pharmaceutical products under its own label in topical, injectable, complex and ophthalmic dosage forms, and managing its contract manufacturing and formulation services business. Its pipeline included 34 Abbreviated New Drug Application(ANDAs) filed with the United States Food and Drug Administration (FDA) for additional pharmaceutical products, as of December 31, 2016.

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