Financial Survey: Prestige Consumer Healthcare (NYSE:PBH) and Innoviva (NASDAQ:INVA)

Innoviva (NASDAQ:INVA) and Prestige Consumer Healthcare (NYSE:PBH) are both healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.

Volatility and Risk

Innoviva has a beta of 0.33, suggesting that its share price is 67% less volatile than the S&P 500. Comparatively, Prestige Consumer Healthcare has a beta of 0.33, suggesting that its share price is 67% less volatile than the S&P 500.

Institutional & Insider Ownership

99.1% of Innoviva shares are held by institutional investors. Comparatively, 100.0% of Prestige Consumer Healthcare shares are held by institutional investors. 2.0% of Innoviva shares are held by insiders. Comparatively, 1.5% of Prestige Consumer Healthcare shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Innoviva and Prestige Consumer Healthcare’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Innoviva	81.19%	28.03%	20.19%
Prestige Consumer Healthcare	15.57%	11.39%	5.66%

Analyst Ratings

This is a summary of current ratings and target prices for Innoviva and Prestige Consumer Healthcare, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innoviva	1	2	3	0	2.33
Prestige Consumer Healthcare	1	3	2	0	2.17

Innoviva currently has a consensus price target of $34.75, indicating a potential upside of 64.46%. Prestige Consumer Healthcare has a consensus price target of $70.75, indicating a potential upside of 45.56%. Given Innoviva’s stronger consensus rating and higher possible upside, equities analysts clearly believe Innoviva is more favorable than Prestige Consumer Healthcare.

Valuation and Earnings

This table compares Innoviva and Prestige Consumer Healthcare”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Innoviva	$440.00 million	3.47	$271.17 million	$4.10	5.15
Prestige Consumer Healthcare	$1.09 billion	2.12	$190.30 million	$3.57	13.61

Innoviva has higher earnings, but lower revenue than Prestige Consumer Healthcare. Innoviva is trading at a lower price-to-earnings ratio than Prestige Consumer Healthcare, indicating that it is currently the more affordable of the two stocks.

Summary

Innoviva beats Prestige Consumer Healthcare on 10 of the 13 factors compared between the two stocks.

About Innoviva

Innoviva, Inc. engages in the development and commercialization of pharmaceutical products in the United States and internationally. The company’s products include RELVAR/BREO ELLIPTA, a once-daily combination medicine consisting of a LABA, vilanterol (VI), an inhaled corticosteroid (ICS), and fluticasone furoate; ANORO ELLIPTA, a once-daily medicine combining a long-acting muscarinic antagonist (LAMA) and umeclidinium bromide (UMEC) with a LABA, VI; GIAPREZA (angiotensin II), a vasoconstrictor to increase blood pressure in adults with septic or other distributive shock; XERAVA (eravacycline) for the treatment of complicated intra-abdominal infections in adults; and XACDURO, a beta lactamase inhibitor for the treatment of hospital-acquired bacterial pneumonia and ventilator-associated bacterial pneumonia. Its development pipeline includes zoliflodacin, a late-stage product candidate, a potential single oral dose cure for the treatment of uncomplicated gonorrhea. Innoviva, Inc. has a strategic partnership with Sarissa Capital Management LP. It has long-acting beta2 agonist (LABA) collaboration agreement with Glaxo Group Limited to develop and commercialize once-daily products for the treatment of chronic obstructive pulmonary disease and asthma. The company was formerly known as Theravance, Inc. and changed its name to Innoviva, Inc. in January 2016. Innoviva, Inc. was incorporated in 1996 and is headquartered in Burlingame, California.

About Prestige Consumer Healthcare

Prestige Consumer Healthcare Inc., together with its subsidiaries, develops, manufactures, markets, distributes, and sells over-the-counter (OTC) health and personal care products in the United States and internationally. The company operates in two segments, North American OTC Healthcare and International OTC Healthcare. It offers BC/Goody's analgesic powders, Boudreaux's Butt Paste baby ointments, Chloraseptic sore throat liquids and lozenges, Clear Eyes for eye redness relief, Compound W wart removals, DenTek for PEG oral care, Debrox ear wax removals, and Dramamine for motion sickness relief. The company also provides Fleet adult enemas/suppositories, Gaviscon upset stomach remedies, Luden's cough drops, Monistat vaginal anti-fungal, Nix lice/parasite treatments, Summer's Eve feminine hygiene, TheraTears dry eye relief, Fess nasal saline spray and washes, and Hydralyte for oral rehydration products. It sells its products through mass merchandisers; and drug, food, dollar, convenience, and club stores, as well as e-commerce channels. The company was formerly known as Prestige Brands Holdings, Inc. and changed its name to Prestige Consumer Healthcare Inc. in August 2018. Prestige Consumer Healthcare Inc. was founded in 1996 and is headquartered in Tarrytown, New York.