Contrasting Theravance Biopharma (NASDAQ:TBPH) and Chugai Pharmaceutical (OTCMKTS:CHGCY)

Theravance Biopharma (NASDAQ:TBPH) and Chugai Pharmaceutical (OTCMKTS:CHGCY) are both healthcare companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, dividends, risk, earnings, analyst recommendations, valuation and institutional ownership.

Volatility and Risk

Theravance Biopharma has a beta of 0.25, indicating that its share price is 75% less volatile than the S&P 500. Comparatively, Chugai Pharmaceutical has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500.

Earnings & Valuation

This table compares Theravance Biopharma and Chugai Pharmaceutical”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Theravance Biopharma	$104.31 million	8.48	$105.89 million	$1.01	16.86
Chugai Pharmaceutical	$8.41 billion	7.81	$2.91 billion	$0.92	21.70

Chugai Pharmaceutical has higher revenue and earnings than Theravance Biopharma. Theravance Biopharma is trading at a lower price-to-earnings ratio than Chugai Pharmaceutical, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations for Theravance Biopharma and Chugai Pharmaceutical, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Theravance Biopharma	0	8	0	0	2.00
Chugai Pharmaceutical	0	3	1	1	2.60

Theravance Biopharma currently has a consensus price target of $19.40, suggesting a potential upside of 13.92%. Given Theravance Biopharma’s higher possible upside, equities research analysts clearly believe Theravance Biopharma is more favorable than Chugai Pharmaceutical.

Profitability

This table compares Theravance Biopharma and Chugai Pharmaceutical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Theravance Biopharma	51.58%	-0.77%	-0.46%
Chugai Pharmaceutical	35.09%	23.76%	19.92%

Insider & Institutional Ownership

99.1% of Theravance Biopharma shares are owned by institutional investors. Comparatively, 0.0% of Chugai Pharmaceutical shares are owned by institutional investors. 7.6% of Theravance Biopharma shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Chugai Pharmaceutical beats Theravance Biopharma on 9 of the 15 factors compared between the two stocks.

About Theravance Biopharma

Theravance Biopharma, Inc. is a diversified biopharmaceutical company primarily focused on the discovery, development and commercialization of organ-selective medicines. Its purpose is to pioneer a new generation of small molecule drugs designed to better meet patient needs. Its research is focused in the areas of inflammation and immunology.
In pursuit of its purpose, Theravance Biopharma applies insights and innovation at each stage of its business and utilizes its internal capabilities and those of partners around the world. The Company applies organ-selective expertise to target disease biologically, to discover and develop medicines that may expand the therapeutic index with the goal of maximizing efficacy and limiting systemic side effects. These efforts leverage years of experience in developing lung-selective medicines to treat respiratory disease, including FDA-approved YUPELRI® (revefenacin) inhalation solution indicated for the maintenance treatment of patients with chronic obstructive pulmonary disease (COPD). Its pipeline of internally discovered programs is targeted to address significant patient needs.
Theravance Biopharma has an economic interest in potential future payments from Glaxo Group Limited or one of its affiliates (GSK) pursuant to its agreements with Innoviva, Inc. relating to certain programs, including TRELEGY.
For more information, please visit www.theravance.com.

About Chugai Pharmaceutical

Chugai Pharmaceutical Co., Ltd., together with its subsidiaries, engages in the research, development, manufacture, sale, importation, and exportation of pharmaceuticals in Japan and internationally. The company’s products for oncology primarily include Avastin, FoundationOne, Polivy, Rozlytrek, Tecentriq, Perjeta, Alecensa, Herceptin, Kadcyla, Rituxan, and Gazyva; Edirol, an Osteoporosis agent; Mircera, an erythropoiesis agent; Oxarol, an agent for secondary hyperparathyroidism; and other diseases comprise Hemlibra, CellCept, Bonviva, Tamiflu, Evrysdi, Ronapreve, Vabysmo, and Enspryng. It has various development product candidates in the areas of oncology, immunology, neuroscience, hematology, ophthalmology, and other diseases. Chugai Pharmaceutical Co., Ltd. has strategic alliances and collaboration with Roche Group. The company was founded in 1925 and is headquartered in Chuo, Japan. Chugai Pharmaceutical Co., Ltd. operates as a subsidiary of Roche Holding Ltd.