Bausch Health Cos (NYSE:BHC) & Fortress Biotech (NASDAQ:FBIO) Financial Comparison

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

Volatility & Risk

Fortress Biotech has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500. Comparatively, Bausch Health Cos has a beta of 0.37, indicating that its share price is 63% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Fortress Biotech	163.32%	83.47%	42.98%
Bausch Health Cos	-10.12%	-561.95%	6.31%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fortress Biotech	$63.26 million	1.02	$6.82 million	$2.64	0.73
Bausch Health Cos	$10.27 billion	0.24	$157.00 million	($2.96)	-2.18

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Fortress Biotech and Bausch Health Cos, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fortress Biotech	1	1	2	0	2.25
Bausch Health Cos	1	5	0	1	2.14

Fortress Biotech currently has a consensus price target of $17.00, suggesting a potential upside of 780.83%. Bausch Health Cos has a consensus price target of $8.00, suggesting a potential upside of 24.13%. Given Fortress Biotech’s stronger consensus rating and higher possible upside, research analysts plainly believe Fortress Biotech is more favorable than Bausch Health Cos.

Institutional and Insider Ownership

96.5% of Fortress Biotech shares are owned by institutional investors. Comparatively, 78.7% of Bausch Health Cos shares are owned by institutional investors. 28.5% of Fortress Biotech shares are owned by company insiders. Comparatively, 20.7% of Bausch Health Cos shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Fortress Biotech beats Bausch Health Cos on 12 of the 15 factors compared between the two stocks.

About Fortress Biotech

Fortress Biotech, Inc., a biopharmaceutical company, develops dermatology, pharmaceutical, and biotechnology products in the United States. The company markets dermatology products, such as Qbrexza a medicated cloth towelette for the treatment of primary axillary hyperhidrosis; Accutane capsules for severe recalcitrant nodular acne; Amzeeq for severe acne vulgaris; Zilxi, a topical foam; Exelderm cream and solution for topical use; Targadox an oral doxycycline drug for adjunctive therapy for severe acne; Luxamend; sulconazole nitrate cream and solution for tinea cruris and tinea corporis; and doxycycline hyclate tablet. It also develops late stage product candidates, such as intravenous Tramadol for the treatment of post-operative acute pain; CUTX-101, an injection for the treatment of Menkes disease; Cosibelimab for metastatic cancers; Olafertinib for the treatment of patients with EGFR mutation-positive NSCLC; CAEL-101 for the treatment of amyloid light chain amyloidosis; Triplex vaccine for cytomegalovirus; and DFD-29 for the treatment of rosacea. The company’s early stage product candidates include Dotinurad for gout; MB-106 for B-cell non-hodgkin lymphoma; MB-101 for glioblastoma; MB-108 for recurrent GBM; MB-109 for refractory glioblastoma; AJ201, an androgen receptor degradation enhancer; BAER-101, a positive allosteric modulator; MB-117 for newly diagnosed x-linked severe combined immunodeficiency; and MB217 for previously transplanted; and MB-110 for RAG1 severe combined immunodeficiency. Its preclinical product candidates comprise Mayo Clinic In Vivo CAR T Platform Technology; AAV-ATP7A gene therapy; AVTS-001 gene therapy; CK-103 BET inhibitor; CEVA-D and CEVA-102; CK-302, an anti-GITR; CK-303, an anti-CAIX; and oligonucleotide platform. The company was formerly known as Coronado Biosciences, Inc. and changed its name to Fortress Biotech, Inc. in April 2015. Fortress Biotech, Inc. was incorporated in 2006 and is based in Bay Harbor Islands, Florida.

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.