Taro Pharmaceutical Industries (NYSE: TARO) and Neuralstem (NASDAQ:CUR) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, valuation, analyst recommendations, profitability and earnings.
Earnings and Valuation
This table compares Taro Pharmaceutical Industries and Neuralstem’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Taro Pharmaceutical Industries||$879.39 million||4.83||$456.35 million||$8.12||13.06|
Institutional and Insider Ownership
13.4% of Taro Pharmaceutical Industries shares are owned by institutional investors. Comparatively, 7.1% of Neuralstem shares are owned by institutional investors. 13.8% of Taro Pharmaceutical Industries shares are owned by insiders. Comparatively, 15.4% of Neuralstem shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Risk and Volatility
Taro Pharmaceutical Industries has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500. Comparatively, Neuralstem has a beta of 1.63, indicating that its share price is 63% more volatile than the S&P 500.
This table compares Taro Pharmaceutical Industries and Neuralstem’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Taro Pharmaceutical Industries||44.07%||15.66%||14.18%|
This is a summary of recent recommendations for Taro Pharmaceutical Industries and Neuralstem, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Taro Pharmaceutical Industries||0||1||0||0||2.00|
Neuralstem has a consensus price target of $3.18, indicating a potential upside of 66.49%. Given Neuralstem’s higher possible upside, analysts clearly believe Neuralstem is more favorable than Taro Pharmaceutical Industries.
Taro Pharmaceutical Industries beats Neuralstem on 6 of the 10 factors compared between the two stocks.
About Taro Pharmaceutical Industries
Taro Pharmaceutical Industries Ltd. (Taro) is a science-based pharmaceutical company. The Company operates principally through three entities: Taro Pharmaceutical Industries Ltd. (Taro Israel), and two of its subsidiaries, Taro Pharmaceuticals Inc. (Taro Canada) and Taro U.S.A. The Company markets over 200 pharmaceutical products in over 25 countries. The Company’s owned product brands include Rokacet, with generic names, such as acetaminophen, codeine and caffeine; Topicort, with the generic name, desoximetasone; Etopan, with the generic name etodolac, and Ovide, with the generic name, malathion, among others. The Company’s other generic products include acetazolamide, adapalene, alclometasone dipropionate, amiodarone hydrochloride, ammonium lactate, augmented betamethasone dipropionate, cetirizine hydrochloride, clobetasol propionate, clomipramine hydrochloride, clorazepate dipotassium, fluorouracil, ketoconazole, metronidazole, mupirocin and warfarin sodium, among others.
Neuralstem, Inc. (Neuralstem) is a clinical-stage biopharmaceutical company. The Company is engaged in research, development and commercialization of central nervous system therapies based on its human neuronal stem cells and its stem-cell derived small molecule compounds. The Company has approximately three assets: its NSI-189 small molecule program, its NSI-566 stem cell therapy program and its chemical entity screening platform. The Company’s technology allows the commercial-scale production of multiple types of central nervous system stem cells, which are under development for the treatment of central nervous system diseases and conditions. The Company is developing NSI-189 for the treatment of major depressive disorder (MDD) and other psychiatric and/or cognitive impairment indications associated with hippocampal atrophy. The Company’s NSI-566 is indicated for amyotrophic lateral sclerosis (ALS), chronic spinal cord injury and motor deficits due to ischemic stroke.
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