Head-To-Head Contrast: Bausch Health Cos (NYSE:BHC) and Sol-Gel Technologies (NASDAQ:SLGL)

Sol-Gel Technologies (NASDAQ:SLGL) and Bausch Health Cos (NYSE:BHC) are both medical companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, earnings, valuation, dividends, institutional ownership and risk.

Valuation and Earnings

This table compares Sol-Gel Technologies and Bausch Health Cos”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sol-Gel Technologies	$11.54 million	3.14	-$10.58 million	($4.70)	-2.77
Bausch Health Cos	$9.63 billion	0.22	-$46.00 million	$0.26	21.96

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for Sol-Gel Technologies and Bausch Health Cos, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sol-Gel Technologies	0	0	1	0	3.00
Bausch Health Cos	0	3	0	0	2.00

Sol-Gel Technologies presently has a consensus price target of $40.00, suggesting a potential upside of 207.69%. Bausch Health Cos has a consensus price target of $9.00, suggesting a potential upside of 57.62%. Given Sol-Gel Technologies’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Sol-Gel Technologies is more favorable than Bausch Health Cos.

Profitability

This table compares Sol-Gel Technologies and Bausch Health Cos’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sol-Gel Technologies	-107.78%	-43.98%	-35.28%
Bausch Health Cos	0.99%	-522.39%	5.28%

Institutional and Insider Ownership

26.2% of Sol-Gel Technologies shares are held by institutional investors. Comparatively, 78.7% of Bausch Health Cos shares are held by institutional investors. 66.5% of Sol-Gel Technologies shares are held by company insiders. Comparatively, 8.1% of Bausch Health Cos shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Sol-Gel Technologies has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500. Comparatively, Bausch Health Cos has a beta of 0.41, meaning that its share price is 59% less volatile than the S&P 500.

Summary

Sol-Gel Technologies beats Bausch Health Cos on 8 of the 14 factors compared between the two stocks.

About Sol-Gel Technologies

Sol-Gel Technologies Ltd., together with its subsidiary Sol-Gel Technologies Inc., develops topical dermatological drugs for patients with severe skin conditions in Israel. The company offers Twyneo, a once-daily, non-antibiotic topical cream for the treatment of acne vulgaris; and Epsolay, a once-daily topical cream for the treatment of papulopustular (subtype II) rosacea. It also develops SGT-610 that is in Phase 3 clinical trials for the treatment of Gorlin Syndrome; and SGT-210, which has completed Phase I clinical trial, to treat rare hyperkeratinization disorders, such as Darier, PC, PPK, Olmsted, etc. In addition, the company is also involved in the development of generic topical dermatological drug products. It has collaboration with Padagis Israel Pharmaceuticals Ltd; and license agreements with Galderma Holding SA and Searchlight Pharma Inc. Sol-Gel Technologies Ltd. was incorporated in 1997 and is headquartered in Ness Ziona, Israel.

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.