Commonwealth Bank of Australia (OTCMKTS:CSLLY) and FibroGen (NASDAQ:FGEN) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, valuation, earnings and dividends.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Commonwealth Bank of Australia and FibroGen, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Commonwealth Bank of Australia 0 4 0 0 2.00
FibroGen 0 4 4 0 2.50

FibroGen has a consensus target price of $53.29, indicating a potential upside of 48.22%. Given FibroGen’s stronger consensus rating and higher possible upside, analysts clearly believe FibroGen is more favorable than Commonwealth Bank of Australia.

Insider & Institutional Ownership

0.2% of Commonwealth Bank of Australia shares are held by institutional investors. Comparatively, 69.7% of FibroGen shares are held by institutional investors. 7.8% of FibroGen shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Commonwealth Bank of Australia has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500. Comparatively, FibroGen has a beta of 1.53, meaning that its share price is 53% more volatile than the S&P 500.

Earnings and Valuation

This table compares Commonwealth Bank of Australia and FibroGen’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Commonwealth Bank of Australia $8.54 billion 10.41 $1.92 billion $2.12 46.17
FibroGen $256.58 million 12.48 -$76.97 million ($0.89) -40.39

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

Profitability

This table compares Commonwealth Bank of Australia and FibroGen’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Commonwealth Bank of Australia N/A N/A N/A
FibroGen -42.75% -18.34% -12.37%

About Commonwealth Bank of Australia

CSL Limited researches, develops, manufactures, markets, and distributes biopharmaceutical and allied products in Australia, the United States, Germany, the United Kingdom, Switzerland, China, and internationally. The company operates through two segments, CSL Behring and Seqirus. The CSL Behring segment offers plasma therapies for the treatment of immunodeficiency, bleeding disorders, hereditary angioedema, Alpha-1 antitrypsin deficiency, and neurological disorders. It also operates approximately 140 plasma collection centers. In addition, this segment conducts research on plasma and non-plasma therapies; and receives license and royalty from the commercialization of intellectual property. The Seqirus segment manufactures and distributes non-plasma biotherapeutic products; and developsinfluenza vaccines. CSL Limited was founded in 1916 and is headquartered in Parkville, Australia.

About FibroGen

FibroGen, Inc., a biopharmaceutical company, discovers, develops, and commercializes therapeutics to treat serious unmet medical needs. It is developing Roxadustat, an oral small molecule inhibitor of hypoxia inducible factor prolyl hydroxylases (HIF-PHs) that is in Phase III clinical development for the treatment of anemia in chronic kidney disease in the United States and Europe; and in Phase II/III development in China for anemia associated with myelodysplastic syndromes. The company is also developing Pamrevlumab, a human monoclonal antibody that inhibits the activity of connective tissue growth factor for the treatment of idiopathic pulmonary fibrosis, pancreatic cancer, liver fibrosis, and diabetic kidney disease, as well as Duchenne muscular dystrophy; and FG-5200, a corneal implant medical device for the treatment of corneal blindness resulting from partial thickness corneal damage. It has collaboration agreements with Astellas Pharma Inc. and AstraZeneca AB. The company was incorporated in 1993 and is headquartered in San Francisco, California.

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