Innoviva (NASDAQ:INVA – Get Free Report) and Bayer Aktiengesellschaft (OTCMKTS:BAYRY – Get Free Report) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, risk, earnings and dividends.
Volatility and Risk
Innoviva has a beta of 0.37, indicating that its share price is 63% less volatile than the S&P 500. Comparatively, Bayer Aktiengesellschaft has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500.
Institutional & Insider Ownership
99.1% of Innoviva shares are held by institutional investors. 2.3% of Innoviva shares are held 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.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Innoviva | $358.71 million | 3.48 | $23.39 million | ($1.01) | -19.68 |
| Bayer Aktiengesellschaft | $50.44 billion | 0.63 | -$2.76 billion | ($0.92) | -8.78 |
Innoviva has higher earnings, but lower revenue than Bayer Aktiengesellschaft. Innoviva is trading at a lower price-to-earnings ratio than Bayer Aktiengesellschaft, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Innoviva and Bayer Aktiengesellschaft, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Innoviva | 0 | 0 | 3 | 0 | 3.00 |
| Bayer Aktiengesellschaft | 0 | 1 | 1 | 2 | 3.25 |
Innoviva currently has a consensus price target of $40.33, suggesting a potential upside of 102.88%. Given Innoviva’s higher possible upside, analysts clearly believe Innoviva is more favorable than Bayer Aktiengesellschaft.
Profitability
This table compares Innoviva and Bayer Aktiengesellschaft’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Innoviva | -16.15% | 15.77% | 8.41% |
| Bayer Aktiengesellschaft | -7.26% | 13.94% | 4.09% |
Summary
Innoviva beats Bayer Aktiengesellschaft on 8 of the 15 factors compared between the two stocks.
About Innoviva
Innoviva, Inc. engages in the development and commercialization of pharmaceutical products in the United States and internationally. The company’s products include RELVAR/BREO ELLIPTA, a once-daily combination medicine consisting of a LABA, vilanterol (VI), an inhaled corticosteroid (ICS), and fluticasone furoate; ANORO ELLIPTA, a once-daily medicine combining a long-acting muscarinic antagonist (LAMA) and umeclidinium bromide (UMEC) with a LABA, VI; GIAPREZA (angiotensin II), a vasoconstrictor to increase blood pressure in adults with septic or other distributive shock; XERAVA (eravacycline) for the treatment of complicated intra-abdominal infections in adults; and XACDURO, a beta lactamase inhibitor for the treatment of hospital-acquired bacterial pneumonia and ventilator-associated bacterial pneumonia. Its development pipeline includes zoliflodacin, a late-stage product candidate, a potential single oral dose cure for the treatment of uncomplicated gonorrhea. Innoviva, Inc. has a strategic partnership with Sarissa Capital Management LP. It has long-acting beta2 agonist (LABA) collaboration agreement with Glaxo Group Limited to develop and commercialize once-daily products for the treatment of chronic obstructive pulmonary disease and asthma. The company was formerly known as Theravance, Inc. and changed its name to Innoviva, Inc. in January 2016. Innoviva, Inc. was incorporated in 1996 and is headquartered in Burlingame, California.
About Bayer Aktiengesellschaft
Bayer Aktiengesellschaft, together its subsidiaries, operates as a life science company worldwide. It operates through Pharmaceuticals, Consumer Health, and Crop Science segments. The Pharmaceuticals segment offers prescription products primarily for cardiology and women’s health care; specialty therapeutics in the areas of oncology, hematology, and ophthalmology; and diagnostic imaging equipment and digital solutions, and contrast agents, as well as cell and gene therapy. The Consumer Health segment markets nonprescription over-the-counter medicines for self-medication and self-care; and solutions for nutritional supplements, allergy, cough and cold, dermatology, pain and cardiovascular risk prevention, and digestive health. This segment also provides breeding, propagation, and production/processing of seeds, including seed dressing. The company has a collaboration with Acuitas Therapeutics, Inc. to strengthen gene editing programs; Peking University in the area of basic pharmaceutical research; the Swiss Tropical and Public Health Institute in the development of the compound emodepside for the treatment of infection with soil-transmitted helminths; bit.bio Ltd. for the discovery and manufacture of regulatory T cells for use in creating therapeutics; Hologic, Inc. in the field of contrastenhanced-mammography solutions to improve diagnostic imaging for the detection of breast cancer; and Twist Bioscience Corporation centering around the research and development of antibody-based pharmaceuticals, as well as with CrossBay Medical Inc. It distributes its products through wholesalers, pharmacies and pharmacy chains, supermarkets, online and other retailers, and hospitals, as well as directly to farmers. The company has collaboration with Thermo Fisher Scientific. Bayer Aktiengesellschaft was founded in 1863 and is based in Leverkusen, Germany.
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