Contrasting Teva Pharmaceutical Industries (NYSE:TEVA) & Amneal Pharmaceuticals (NASDAQ:AMRX)

Amneal Pharmaceuticals (NASDAQ:AMRXGet Free Report) and Teva Pharmaceutical Industries (NYSE:TEVAGet Free Report) are both healthcare companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

31.8% of Amneal Pharmaceuticals shares are held by institutional investors. Comparatively, 54.0% of Teva Pharmaceutical Industries shares are held by institutional investors. 17.3% of Amneal Pharmaceuticals shares are held by insiders. Comparatively, 0.5% of Teva Pharmaceutical Industries 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.

Analyst Ratings

This is a summary of recent recommendations and price targets for Amneal Pharmaceuticals and Teva Pharmaceutical Industries, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Amneal Pharmaceuticals 0 1 8 0 2.89
Teva Pharmaceutical Industries 0 1 10 0 2.91

Amneal Pharmaceuticals currently has a consensus price target of $19.57, indicating a potential upside of 15.06%. Teva Pharmaceutical Industries has a consensus price target of $43.10, indicating a potential upside of 16.46%. Given Teva Pharmaceutical Industries’ stronger consensus rating and higher possible upside, analysts clearly believe Teva Pharmaceutical Industries is more favorable than Amneal Pharmaceuticals.

Volatility & Risk

Amneal Pharmaceuticals has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500. Comparatively, Teva Pharmaceutical Industries has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500.

Profitability

This table compares Amneal Pharmaceuticals and Teva Pharmaceutical Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Amneal Pharmaceuticals 5.05% -584.46% 7.78%
Teva Pharmaceutical Industries 4.08% 32.64% 6.34%

Earnings & Valuation

This table compares Amneal Pharmaceuticals and Teva Pharmaceutical Industries”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Amneal Pharmaceuticals $3.02 billion 1.80 $72.06 million $0.49 34.71
Teva Pharmaceutical Industries $17.26 billion 2.50 $1.41 billion $0.60 61.68

Teva Pharmaceutical Industries has higher revenue and earnings than Amneal Pharmaceuticals. Amneal Pharmaceuticals is trading at a lower price-to-earnings ratio than Teva Pharmaceutical Industries, indicating that it is currently the more affordable of the two stocks.

Summary

Teva Pharmaceutical Industries beats Amneal Pharmaceuticals on 10 of the 14 factors compared between the two stocks.

About Amneal Pharmaceuticals

(Get Free Report)

Amneal Pharmaceuticals, Inc., together with its subsidiaries, develops, manufactures, markets, and distributes generics, injectables, biosimilars, and specialty branded pharmaceutical products worldwide. The company operates through three segments: Generics, Specialty, and AvKARE. The Generics segment offers immediate and extended release oral solid, powder, liquid, sterile injectable, nasal spray, inhalation and respiratory, biosimilar, ophthalmic, film, transdermal patch, and topical products. The Specialty segment develops, promotes, sells, and distributes pharmaceutical products with focus on central nervous system disorders, including Parkinson's disease, and endocrine disorders. This segment also provides Rytary, an oral capsule formulation of carbidopa-levodopa to treat Parkinson's disease, post-encephalitic parkinsonism, and parkinsonism; Unithroid for the treatment of hypothyroidism; and IPX203, a pipeline product for Parkinson's disease. The AvKARE segment offers pharmaceuticals, medical and surgical products, and services primarily to governmental agencies, the Department of Defense, and the Department of Veterans Affairs. This segment also distributes bottle and unit dose pharmaceuticals under the AvKARE and AvPAK names; and packages and distributes pharmaceuticals and vitamins to its retail and institutional customers. It sells its products through wholesalers, distributors, hospitals, chain pharmacies, and individual pharmacies. The company was formerly known as Atlas Holdings, Inc. and changed its name to Amneal Pharmaceuticals, Inc. in 2018. Amneal Pharmaceuticals, Inc. was founded in 2002 and is headquartered in Bridgewater, New Jersey.

About Teva Pharmaceutical Industries

(Get Free Report)

Teva Pharmaceutical Industries Limited develops, manufactures, markets, and distributes generic medicines, specialty medicines, and biopharmaceutical products in North America, Europe, Israel, and internationally. It offers generic medicines in various dosage forms, such as tablets, capsules, injectables, inhalants, liquids, transdermal patches, ointments, and creams; sterile products, hormones, high-potency drugs, and cytotoxic substances in parenteral and solid dosage forms; and generic products with medical devices and combination products. The company focuses on the central nervous system (CNS), respiratory, and oncology areas. It provides active pharmaceutical ingredients, as well as contract manufacturing services; and operates an out-licensing platform that offers a portfolio of products to other pharmaceutical companies. The company also offers BENDEKA and TREANDA injections for the treatment of chronic lymphocytic leukemia and indolent b-cell non-hodgkin’s lymphoma; GRANIX; TRISENOX; LONQUEX; and TEVAGRASTIM/RATIOGRASTIM. In addition, it provides COPAXONE for the treatment of relapsing forms of multiple sclerosis; AJOVY for the preventive treatment of migraine in adults; AUSTEDO for the treatment of neurodegenerative and movement disorders associated with Huntington’s disease and tardive dyskinesia; UZEDY for the treatment of schizophrenia; ProAir RespiClick inhalation powder; QVAR for treatment for asthma; BRALTUS, a long-acting muscarinic antagonist; CINQAIR/CINQAERO injection; DuoResp Spiromax, an inhaled corticosteroid and long-acting beta-agonist bronchodilator; and AirDuo RespiClick fluticasone propionate and salmeterol inhalation powder. The company offers its OTC products under SUDOCREM, NasenDuo, DICLOX FORTE, OLFEN Max, and FLEGAMINA brand names. It has collaboration agreements with MedinCell; Sanofi; Alvotech; and Biolojic Design Ltd., as well as license agreement with MODAG GmbH. The company was founded in 1901 and is based in Tel Aviv, Israel.

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