Patheon (PTHN) and Concordia International (CXRX) Financial Analysis

Patheon (NYSE: PTHN) and Concordia International (NASDAQ:CXRX) are both healthcare companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.

Valuation and Earnings

This table compares Patheon and Concordia International’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Patheon $1.87 billion 2.72 $31.70 million $0.76 46.03
Concordia International $816.16 million 0.04 -$1.32 billion ($35.68) -0.02

Patheon has higher revenue and earnings than Concordia International. Concordia International is trading at a lower price-to-earnings ratio than Patheon, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and target prices for Patheon and Concordia International, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Patheon 0 6 1 0 2.14
Concordia International 2 0 0 0 1.00

Patheon currently has a consensus price target of $33.60, indicating a potential downside of 3.95%. Given Patheon’s stronger consensus rating and higher probable upside, research analysts plainly believe Patheon is more favorable than Concordia International.

Profitability

This table compares Patheon and Concordia International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Patheon 5.63% -35.93% 4.18%
Concordia International -282.00% -83.96% -0.07%

Institutional and Insider Ownership

0.6% of Patheon shares are held by institutional investors. Comparatively, 8.7% of Concordia International shares are held by institutional investors. 0.1% of Patheon shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Patheon beats Concordia International on 12 of the 13 factors compared between the two stocks.

Patheon Company Profile

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.

Concordia International Company Profile

Concordia International Corp, formerly Concordia Healthcare Corp, is a Canada-based pharmaceutical company. The Company, through subsidiaries, owns a portfolio of branded and generic prescription products. Its activities are divided into four segments: Concordia North America, includes sales of pharmaceutical products, such as Donnatal for the treatment of irritable bowel syndrome, Zonegran for the treatment of partial seizures in adults with epilepsy and Nilandron for the treatment of metastatic prostate cancer; Concordia International, includes a portfolio of branded and generic products that are sold to wholesalers, hospitals and pharmacies in over 100 countries, and focuses on acquisition, licensing and development of off-patent prescription medicines; Orphan Drugs, includes Photofrin, which is for the treatment of certain forms of rare cancer, and Corporate cost centre, includes centralized costs incurred by the Company.

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