Taro Pharmaceutical Industries (NYSE: TARO) and Veru (NASDAQ:VERU) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, analyst recommendations, dividends, institutional ownership and profitability.
Insider & Institutional Ownership
13.3% of Taro Pharmaceutical Industries shares are held by institutional investors. Comparatively, 4.7% of Veru shares are held by institutional investors. 13.8% of Taro Pharmaceutical Industries shares are held by insiders. Comparatively, 10.9% of Veru shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Taro Pharmaceutical Industries has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500. Comparatively, Veru has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500.
This is a breakdown of current ratings and target prices for Taro Pharmaceutical Industries and Veru, 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|
Veru has a consensus price target of $5.00, suggesting a potential upside of 376.19%. Given Veru’s stronger consensus rating and higher possible upside, analysts clearly believe Veru is more favorable than Taro Pharmaceutical Industries.
This table compares Taro Pharmaceutical Industries and Veru’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%|
Earnings & Valuation
This table compares Taro Pharmaceutical Industries and Veru’s gross 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||4.82||$456.35 million||$8.12||13.03|
Taro Pharmaceutical Industries has higher revenue and earnings than Veru. Veru is trading at a lower price-to-earnings ratio than Taro Pharmaceutical Industries, indicating that it is currently the more affordable of the two stocks.
Taro Pharmaceutical Industries beats Veru on 9 of the 13 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.
Veru Inc., formerly The Female Health Company, is a therapeutics company focused on developing and commercializing pharmaceuticals and devices in men’s and women’s health and oncology. The Company is engaged in the development, manufacture and marketing of consumer healthcare products. The Company has three divisions: Pharmaceutical and Devices, Consumer Health Products and Public Sector. For men, product and product candidates are in the areas of benign prostatic hyperplasia, male infertility, amelioration of side effects of hormonal prostate cancer therapies, prostate cancer, gout and sexual dysfunction. Women’s Health has product candidates for female sexual health, and advanced breast and ovarian cancers. It manufactures, markets and sells the FC2 Female Condom. FC2 provides dual protection against unintended pregnancy and sexually transmitted infections (STIs), including human immunodeficiency virus/acquired immune deficiency syndrome (HIV/AIDS).
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