Celgene (NASDAQ: CELG) and Bristol-Myers Squibb (NYSE:BMY) are both large-cap healthcare companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, valuation, earnings and dividends.
Valuation and Earnings
This table compares Celgene and Bristol-Myers Squibb’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Celgene||$13.00 billion||5.30||$2.94 billion||$5.25||17.45|
|Bristol-Myers Squibb||$20.78 billion||5.24||$1.01 billion||$2.36||28.23|
Volatility and Risk
Celgene has a beta of 1.58, meaning that its stock price is 58% more volatile than the S&P 500. Comparatively, Bristol-Myers Squibb has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500.
Bristol-Myers Squibb pays an annual dividend of $1.60 per share and has a dividend yield of 2.4%. Celgene does not pay a dividend. Bristol-Myers Squibb pays out 67.8% of its earnings in the form of a dividend. Celgene has raised its dividend for 8 consecutive years.
Insider and Institutional Ownership
78.7% of Celgene shares are owned by institutional investors. Comparatively, 71.6% of Bristol-Myers Squibb shares are owned by institutional investors. 1.0% of Celgene shares are owned by insiders. Comparatively, 0.2% of Bristol-Myers Squibb shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This table compares Celgene and Bristol-Myers Squibb’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent ratings and price targets for Celgene and Bristol-Myers Squibb, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Celgene presently has a consensus target price of $128.62, indicating a potential upside of 40.40%. Bristol-Myers Squibb has a consensus target price of $66.15, indicating a potential downside of 0.71%. Given Celgene’s stronger consensus rating and higher possible upside, research analysts clearly believe Celgene is more favorable than Bristol-Myers Squibb.
Celgene beats Bristol-Myers Squibb on 15 of the 18 factors compared between the two stocks.
Celgene Company Profile
Celgene Corporation is an integrated global biopharmaceutical company. The Company, together with its subsidiaries, is engaged in the discovery, development and commercialization of therapies for the treatment of cancer and inflammatory diseases through solutions in protein homeostasis, immuno-oncology, epigenetics, immunology and neuro-inflammation. Its commercial-stage products include REVLIMID (lenalidomide), POMALYST/IMNOVID (pomalidomide), OTEZLA (apremilast), ABRAXANE (paclitaxel albumin-bound particles for injectable suspension), VIDAZA, azacitidine for injection (generic version of VIDAZA) and THALOMID (thalidomide). Its clinical trial activity includes trials across the disease areas of hematology, solid tumors, and inflammation and immunology. The Company also markets ISTODAX, which is an epigenetic modifier. The Company is also evaluating AG-221 (enasidenib) in combination with VIDAZA in newly diagnosed acute myeloid leukemia with isocitrate dehydrogenase-2 mutations.
Bristol-Myers Squibb Company Profile
Bristol-Myers Squibb Company is engaged in the discovery, development, licensing, manufacturing, marketing, distribution and sale of biopharmaceutical products. The Company’s pharmaceutical products include chemically synthesized drugs, or small molecules, and products produced from biological processes called biologics. Small molecule drugs are administered orally in the form of a pill or tablet. Biologics are administered to patients through injections or by infusion. The Company’s products include Empliciti, Opdivo, Sprycel, Yervoy, Eliquis, Orencia, Baraclude, Hepatitis C Franchise, Reyataz Franchise and Sustiva Franchise. It offers products for a range of therapeutic classes, which include virology, including human immunodeficiency virus (HIV) infection; oncology; immunoscience, and cardiovascular. Its products are sold to wholesalers, retail pharmacies, hospitals, government entities and the medical profession across the world.
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