BioDelivery Sciences International (NASDAQ: BDSI) and Patheon (NYSE:PTHN) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.
Volatility & Risk
BioDelivery Sciences International has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500. Comparatively, Patheon has a beta of 2.69, suggesting that its share price is 169% more volatile than the S&P 500.
This table compares BioDelivery Sciences International and Patheon’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|BioDelivery Sciences International||10.40%||33.83%||6.43%|
This is a breakdown of recent recommendations for BioDelivery Sciences International and Patheon, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|BioDelivery Sciences International||0||1||5||0||2.83|
BioDelivery Sciences International presently has a consensus target price of $4.50, suggesting a potential upside of 63.64%. Patheon has a consensus target price of $33.60, suggesting a potential downside of 3.95%. Given BioDelivery Sciences International’s stronger consensus rating and higher probable upside, equities research analysts plainly believe BioDelivery Sciences International is more favorable than Patheon.
Institutional and Insider Ownership
44.2% of BioDelivery Sciences International shares are owned by institutional investors. Comparatively, 0.7% of Patheon shares are owned by institutional investors. 7.7% of BioDelivery Sciences International shares are owned by insiders. Comparatively, 0.1% of Patheon shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares BioDelivery Sciences International and Patheon’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|BioDelivery Sciences International||$15.55 million||9.88||-$67.13 million||($0.19)||-14.47|
|Patheon||$1.87 billion||2.72||$31.70 million||$0.75||46.64|
Patheon has higher revenue and earnings than BioDelivery Sciences International. BioDelivery Sciences International is trading at a lower price-to-earnings ratio than Patheon, indicating that it is currently the more affordable of the two stocks.
BioDelivery Sciences International beats Patheon on 9 of the 13 factors compared between the two stocks.
About BioDelivery Sciences International
BioDelivery Sciences International, Inc. is a specialty pharmaceutical company. The Company develops and commercializes, either on its own or in partnerships with third parties, applications of approved therapeutics to address unmet medical needs using drug delivery technologies. The Company develops pharmaceutical products aimed principally in the areas of pain management and addiction. The Company’s products utilize the BioErodible MucoAdhesive (BEMA) drug delivery technology, a small, erodible polymer film for application to the buccal mucosa (the lining inside the cheek). The Company’s United Sates Food and Drug Administration (FDA) approved product, ONSOLIS (fentanyl buccal soluble film), as well as its approved products BUNAVAIL (buprenorphine and naloxone buccal film) buccal film and BELBUCA (buprenorphine) buccal film, utilize BEMA technology.
Patheon N.V. is a provider of outsourced pharmaceutical development and manufacturing services. The Company’s segments include Drug Product Services (DPS), Pharmaceutical Development Services (PDS) and Drug Substance Services (DSS). The DPS segment is engaged in manufacturing and packaging for approved prescription, over-the-counter (OTC) and nutritional products. The PDS segment provides a range of formulation, production and technical services from the early stages of a product’s development to regulatory approval, as well as for new formulations of approved products for lifecycle extension. The DSS segment provides small molecule active pharmaceutical ingredient (API) and outsourced manufacturing solutions for large molecule biological API from early development through commercial scale production. It provides an integrated range of API and finished drug product services to its customers, from formulation development to clinical and commercial-scale manufacturing.
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