Critical Review: Teva Pharmaceutical Industries Limited (TEVA) & Hi-Tech Pharmacal (HITK)

Teva Pharmaceutical Industries Limited (NYSE: TEVA) and Hi-Tech Pharmacal (NASDAQ:HITK) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, profitability, risk, dividends, earnings and analyst recommendations.

Dividends

Teva Pharmaceutical Industries Limited pays an annual dividend of $0.94 per share and has a dividend yield of 7.1%. Hi-Tech Pharmacal does not pay a dividend. Teva Pharmaceutical Industries Limited pays out -15.4% of its earnings in the form of a dividend.

Insider and Institutional Ownership

56.7% of Teva Pharmaceutical Industries Limited shares are owned by institutional investors. 7.1% of Teva Pharmaceutical Industries Limited shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Teva Pharmaceutical Industries Limited and Hi-Tech Pharmacal’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Teva Pharmaceutical Industries Limited $23.37 billion 0.58 $7.42 billion ($6.12) -2.18
Hi-Tech Pharmacal N/A N/A N/A N/A N/A

Teva Pharmaceutical Industries Limited has higher revenue and earnings than Hi-Tech Pharmacal.

Analyst Ratings

This is a summary of current ratings and price targets for Teva Pharmaceutical Industries Limited and Hi-Tech Pharmacal, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Teva Pharmaceutical Industries Limited 4 16 6 0 2.08
Hi-Tech Pharmacal 0 0 0 0 N/A

Teva Pharmaceutical Industries Limited presently has a consensus target price of $28.04, suggesting a potential upside of 110.48%. Given Teva Pharmaceutical Industries Limited’s higher possible upside, equities analysts plainly believe Teva Pharmaceutical Industries Limited is more favorable than Hi-Tech Pharmacal.

Profitability

This table compares Teva Pharmaceutical Industries Limited and Hi-Tech Pharmacal’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Teva Pharmaceutical Industries Limited -25.18% 15.96% 5.31%
Hi-Tech Pharmacal N/A N/A N/A

Summary

Teva Pharmaceutical Industries Limited beats Hi-Tech Pharmacal on 9 of the 10 factors compared between the two stocks.

Teva Pharmaceutical Industries Limited Company Profile

Teva Pharmaceutical Industries Limited is a pharmaceutical company. The Company is engaged in developing, producing and marketing generic medicines and a portfolio of specialty medicines. The Company operates through two segments: Generic medicines and Specialty medicines. The Company develops, manufactures and sells generic medicines in a range of dosage forms, including tablets, capsules, injectables, inhalants, liquids, ointments and creams. Its specialty medicines business focuses on delivering a range of solutions to patients and providers through medicines, devices and services in various regions and markets around the world. Its specialty medicines business includes its core therapeutic areas of central nervous system (CNS) and respiratory medicines with a focus on asthma and chronic obstructive pulmonary disease. It also has specialty products in oncology, women’s health and selected other areas.

Hi-Tech Pharmacal Company Profile

Hi-Tech Pharmacal Co., Inc. is a specialty manufacturer and marketer of prescription, over-the-counter and nutritional products. The Company develops, manufactures and markets products in three categories: generics, prescription brands and over-the-counter (OTC) brands. It produces a range of products for various disease states, including glaucoma, asthma, bronchial disorders, dermatological disorders, allergies, pain, stomach, oral care and other conditions. The Company’s generic products are primarily prescription items and include oral solutions and suspensions, topical creams and ointments as well as nasal sprays. It also specializes in the manufacture of products in its sterile facility capable of producing liquid ophthalmic, otic and inhalation products. In April 2014, Akorn Inc acquired Hi-Tech Pharmacal Co., Inc.

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