Financial Analysis: Bausch Health Cos (NYSE:BHC) vs. Addex Therapeutics (NASDAQ:ADXN)

Bausch Health Cos (NYSE:BHC) and Addex Therapeutics (NASDAQ:ADXN) are both healthcare companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, dividends, risk, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Bausch Health Cos and Addex Therapeutics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bausch Health Cos	1	6	0	0	1.86
Addex Therapeutics	1	0	0	0	1.00

Bausch Health Cos presently has a consensus target price of $8.00, suggesting a potential upside of 41.47%. Given Bausch Health Cos’ stronger consensus rating and higher possible upside, equities analysts clearly believe Bausch Health Cos is more favorable than Addex Therapeutics.

Valuation & Earnings

This table compares Bausch Health Cos and Addex Therapeutics”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bausch Health Cos	$10.27 billion	0.21	$157.00 million	($2.96)	-1.91
Addex Therapeutics	$210,000.00	19.91	-$8.12 million	($5.94)	-0.57

Bausch Health Cos has higher revenue and earnings than Addex Therapeutics. Bausch Health Cos is trading at a lower price-to-earnings ratio than Addex Therapeutics, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Bausch Health Cos and Addex Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bausch Health Cos	-10.12%	-561.95%	6.31%
Addex Therapeutics	N/A	-134.76%	-106.00%

Volatility & Risk

Bausch Health Cos has a beta of 0.37, indicating that its share price is 63% less volatile than the S&P 500. Comparatively, Addex Therapeutics has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500.

Insider & Institutional Ownership

78.7% of Bausch Health Cos shares are held by institutional investors. Comparatively, 16.1% of Addex Therapeutics shares are held by institutional investors. 20.7% of Bausch Health Cos shares are held by insiders. Comparatively, 15.0% of Addex Therapeutics shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Bausch Health Cos beats Addex Therapeutics on 8 of the 13 factors compared between the two stocks.

About Bausch Health Cos

Bausch Health Companies Inc. operates as a diversified specialty pharmaceutical and medical device company in the United States and internationally. It develops, manufactures, and markets a range of products primarily in gastroenterology, hepatology, neurology, dermatology, international pharmaceuticals, over-the-counter (OTC) products, aesthetic medical devices, and eye health. The company operates through five segments: Salix, International, Solta Medical, Diversified, and Bausch + Lomb. The Salix segment provides gastroenterology products in the United States. The International segment sells aesthetic medical devices, branded pharmaceuticals, generic pharmaceuticals, and OTC products internationally. The Solta Medical segment engages in the sale of aesthetic medical devices. The Diversified segment offers pharmaceutical products in the areas of neurology and certain other therapeutic classes; generic products; ortho dermatologic; and dentistry products in the United States. The Bausch + Lomb segment offers products in the areas of vision care, surgical, and ophthalmic pharmaceuticals products. The company was formerly known as Valeant Pharmaceuticals International, Inc. and changed its name to Bausch Health Companies Inc. in July 2018. Bausch Health Companies Inc. is headquartered in Laval, Canada.

About Addex Therapeutics

Addex Therapeutics Ltd discovers, develops, and commercializes small-molecule pharmaceutical products for central nervous system (CNS) disorders in Switzerland. The company focuses on the discovery of G-protein coupled receptors and enzymes. Its lead programs include Dipraglurant for the treatment of Parkinson's disease levodopa-induced dyskinesia and dystonia, and post-stroke/TBI recovery; ADX71149, a novel orally active metabotropic glutamate receptor subtype 2 positive allosteric modulator (mGlu2 PAM) for the treatment of epilepsy; and GABAB PAM for the treatment of pain, anxiety, overactive bladder, and addiction, as well as substance use disorder. Addex Therapeutics Ltd has license and collaboration agreement with Janssen Pharmaceuticals Inc. for the discovery, development, and commercialization of novel mGlu2 PAM compounds for the treatment of CNS and related diseases; license and research agreement with Indivior PLC discovery, development, and commercialization of novel GABAB PAM compounds for the treatment of addiction and other CNS diseases; and The CharcotMarieTooth Association to evaluate the role of GABAB PAM compounds in preclinical models of CMT1A. The company was formerly known as Addex Pharmaceuticals Ltd. Addex Therapeutics Ltd was founded in 2002 and is based in Geneva, Switzerland.