Hospira (NYSE: HSP) and The Medicines (NASDAQ:MDCO) are both generic pharmaceuticals companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, profitability and valuation.

Valuation and Earnings

This table compares Hospira and The Medicines’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hospira N/A N/A N/A $2.39 37.64
The Medicines $167.84 million 10.78 -$119.11 million ($9.13) -2.72

Hospira has higher earnings, but lower revenue than The Medicines. The Medicines is trading at a lower price-to-earnings ratio than Hospira, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Hospira and The Medicines’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hospira 12.15% 16.51% 8.65%
The Medicines -767.94% -174.68% -48.00%

Analyst Ratings

This is a breakdown of current ratings and price targets for Hospira and The Medicines, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hospira 0 0 0 0 N/A
The Medicines 0 0 9 0 3.00

The Medicines has a consensus target price of $55.25, suggesting a potential upside of 122.51%. Given The Medicines’ higher possible upside, analysts plainly believe The Medicines is more favorable than Hospira.

Summary

Hospira beats The Medicines on 5 of the 8 factors compared between the two stocks.

Hospira Company Profile

Hospira, Inc. provides injectable pharmaceutical drugs and infusion technologies and it develops, manufactures, distributes and markets biosimilars. The Company’s portfolio includes generic acute-care and oncology injectables, biosimilars, and integrated infusion therapy and medication management products. The Company conducts operations across the world and is managed in three segments: the Americas, which include the United States, Canada, and Latin America; Europe, Middle East, and Africa (EMEA), and the Asia Pacific, which includes Asia, Japan, Australia and New Zealand. Its portfolio of products includes Specialty Injectable Pharmaceuticals, which includes generic injectables, injectables and biosimilars, Medication Management and Other Pharmaceuticals. Its portfolio of products is used by hospitals and alternate site providers, such as clinics, home healthcare providers and long-term care facilities.

The Medicines Company Profile

The Medicines Company is a global biopharmaceutical company. The Company is focused on advancing the treatment of acute and intensive care patients through the delivery of medicines to the hospital marketplace around the world. It markets Angiomax (bivalirudin), Ionsys (fentanyl iontophoretic transdermal system), Minocin (minocycline) for injection and Orbactiv (oritavancin). It also has a pipeline of products in development, including Carbavance, inclisiran and MDCO-700. Carbavance is used for the treatment of hospitalized patients with gram-negative bacterial infections. Inclisiran is used for the treatment of hypercholesterolemia. MDCO-700 includes sedative-hypnotic, which is used to induce and maintain sedation for procedural care and general anesthesia for surgical care. In addition to these products and products in development, it has a portfolio of generic drugs.

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