China Biologic Products (CBPO) vs. TRACON Pharmaceuticals (TCON) Critical Review

China Biologic Products (NASDAQ: CBPO) and TRACON Pharmaceuticals (NASDAQ:TCON) are both medical 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, profitabiliy and valuation.

Valuation & Earnings

This table compares China Biologic Products and TRACON Pharmaceuticals’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
China Biologic Products $344.89 million 7.20 $155.64 million $3.87 23.56
TRACON Pharmaceuticals $2.87 million 12.73 -$26.51 million ($1.77) -1.24

China Biologic Products has higher revenue and earnings than TRACON Pharmaceuticals. TRACON Pharmaceuticals is trading at a lower price-to-earnings ratio than China Biologic Products, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares China Biologic Products and TRACON Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
China Biologic Products 31.55% 21.86% 18.83%
TRACON Pharmaceuticals -963.11% -119.93% -67.64%

Analyst Ratings

This is a breakdown of current ratings and price targets for China Biologic Products and TRACON Pharmaceuticals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Biologic Products 0 1 2 0 2.67
TRACON Pharmaceuticals 0 1 3 0 2.75

China Biologic Products presently has a consensus target price of $137.50, suggesting a potential upside of 50.82%. TRACON Pharmaceuticals has a consensus target price of $10.33, suggesting a potential upside of 369.70%. Given TRACON Pharmaceuticals’ stronger consensus rating and higher possible upside, analysts plainly believe TRACON Pharmaceuticals is more favorable than China Biologic Products.

Insider and Institutional Ownership

74.1% of China Biologic Products shares are held by institutional investors. Comparatively, 33.2% of TRACON Pharmaceuticals shares are held by institutional investors. 2.7% of China Biologic Products shares are held by insiders. Comparatively, 5.3% of TRACON Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

China Biologic Products has a beta of 1.7, meaning that its stock price is 70% more volatile than the S&P 500. Comparatively, TRACON Pharmaceuticals has a beta of 2.43, meaning that its stock price is 143% more volatile than the S&P 500.

Summary

China Biologic Products beats TRACON Pharmaceuticals on 7 of the 13 factors compared between the two stocks.

China Biologic Products Company Profile

China Biologic Products, Inc. (China Biologic) is a biopharmaceutical company. The Company is principally engaged in the research, development, manufacturing and sales of human plasma-based biopharmaceutical products in China. It operates through the manufacture and sales of human plasma products segment. China Biologic has a product portfolio with over 20 various dosage forms of plasma products and other biopharmaceutical products across nine categories. The Company’s products include human albumin, human immunoglobulin, immunoglobulin for intravenous injection (IVIG), human hepatitis B immunoglobulin, human rabies immunoglobulin, human tetanus immunoglobulin, placenta polypeptide, Factor VIII and human prothrombin complex concentrate (PCC). It is developing Human fibrinogen, Immune Globulin Intravenous (Human), Human Antithrombin III (concentration), Human coagulation factor IX, Human Cytomegalovirus Immunoglobulin and Human Fibrin Sealant.

TRACON Pharmaceuticals Company Profile

TRACON Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company. The Company is focused on the development and commercialization of therapeutics for cancer, wet age-related macular degeneration (wet AMD) and fibrotic diseases. The Company’s research focuses on antibodies that bind to the endoglin receptor, which is essential to angiogenesis (the process of new blood vessel formation) and a contributor to fibrosis (tissue scarring). The Company’s lead product candidate, TRC105, is an endoglin antibody that is being developed for the treatment of multiple solid tumor types in combination with inhibitors of the vascular endothelial growth factor (VEGF) pathway. TRC205 is being developed for the treatment of fibrotic disease. The Company is also developing TRC102, a small molecule that is in clinical development for the treatment of lung cancer and glioblastoma.

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