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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Abbott Laboratories and GTX, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Abbott Laboratories 0 3 15 0 2.83
GTX 0 0 2 0 3.00

Abbott Laboratories presently has a consensus target price of $69.75, suggesting a potential upside of 1.40%. GTX has a consensus target price of $37.50, suggesting a potential upside of 61.01%. Given GTX’s stronger consensus rating and higher possible upside, analysts clearly believe GTX is more favorable than Abbott Laboratories.

Dividends

Abbott Laboratories pays an annual dividend of $1.12 per share and has a dividend yield of 1.6%. GTX does not pay a dividend. Abbott Laboratories pays out 44.8% of its earnings in the form of a dividend. Abbott Laboratories has increased its dividend for 45 consecutive years.

Risk and Volatility

Abbott Laboratories has a beta of 1.48, meaning that its stock price is 48% more volatile than the S&P 500. Comparatively, GTX has a beta of 1.63, meaning that its stock price is 63% more volatile than the S&P 500.

Profitability

This table compares Abbott Laboratories and GTX’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Abbott Laboratories 3.13% 15.30% 6.68%
GTX N/A -110.72% -89.83%

Institutional and Insider Ownership

72.1% of Abbott Laboratories shares are owned by institutional investors. Comparatively, 28.4% of GTX shares are owned by institutional investors. 0.7% of Abbott Laboratories shares are owned by insiders. Comparatively, 41.2% of GTX shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Abbott Laboratories and GTX’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Abbott Laboratories $27.39 billion 4.41 $477.00 million $2.50 27.52
GTX N/A N/A -$30.43 million ($1.75) -13.31

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

Summary

Abbott Laboratories beats GTX on 11 of the 16 factors compared between the two stocks.

About Abbott Laboratories

Abbott Laboratories discovers, develops, manufactures, and sells health care products worldwide. The company's Established Pharmaceutical Products segment offers branded generic pharmaceuticals for the treatment of pancreatic exocrine insufficiency; irritable bowel syndrome or biliary spasm; intrahepatic cholestasis or depressive symptoms; gynecological disorders; hormone replacement therapy; dyslipidemia; hypertension; hypothyroidism; Ménière's disease and vestibular vertigo; pain, fever, and inflammation; migraines; and anti-infective clarithromycin, as well as provides influenza vaccine and products that regulate physiological rhythm of the colon. Its Diagnostic Products segment offers core laboratory systems in the areas of immunoassay, clinical chemistry, hematology, and transfusion; molecular diagnostics systems that automates the extraction, purification, and preparation of DNA and RNA from patient samples, as well as detects and measures infectious agents; cartridges for blood analysis; benchtop systems and rapid tests in the areas of infectious diseases; molecular point-of-care test systems for influenza A and B, RSV, and strep A; cardiometabolic test systems; drug and alcohol test systems, as well as remote patient monitoring and consumer self-test systems; and informatics and automation solutions for use in laboratories. The company's Nutritional Products segment provides pediatric and adult nutritional products. Its Cardiovascular and Neuromodulation Products segment offers rhythm management, electrophysiology, heart failure, vascular, and structural heart devices for the treatment of cardiovascular diseases, as well as neuromodulation devices for the management of chronic pain and movement disorders. The company also provides blood and flash glucose monitoring systems, including test strips, sensors, data management decision software, and accessories for people with diabetes. The company was founded in 1888 and is headquartered in Abbott Park, Illinois.

About GTX

GTx, Inc., a biopharmaceutical company, engages in the discovery, development, and commercialization of medicines for the treatment of stress urinary incontinence (SUI) and prostate cancer. It focuses on the development of selective androgen receptor modulators (SARMs) for the treatment of breast cancer, SUI, and Duchenne muscular dystrophy; and selective androgen receptor degraders to treat progressive castration-resistant prostate cancer. The company's lead SARM candidate is the enobosarm GTx-024, a Phase II open-label proof-of-concept clinical trial for patients with androgen receptor (AR) positive triple-negative breast cancer; and estrogen receptor positive and AR positive advanced breast cancer, as well as postmenopausal women with SUI. GTx, Inc. was founded in 1997 and is headquartered in Memphis, Tennessee.

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