Financial Survey: Bausch Health Cos (NYSE:BHC) vs. Teva Pharmaceutical Industries (NYSE:TEVA)

Bausch Health Cos (NYSE:BHC) and Teva Pharmaceutical Industries (NYSE:TEVA) are both medical companies, but which is the better business? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, analyst recommendations, institutional ownership and risk.

Analyst Recommendations

This is a breakdown of current recommendations for Bausch Health Cos and Teva Pharmaceutical Industries, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bausch Health Cos	0	3	0	0	2.00
Teva Pharmaceutical Industries	0	0	6	2	3.25

Bausch Health Cos currently has a consensus price target of $9.00, suggesting a potential upside of 21.46%. Teva Pharmaceutical Industries has a consensus price target of $24.71, suggesting a potential upside of 34.27%. Given Teva Pharmaceutical Industries’ stronger consensus rating and higher probable upside, analysts clearly believe Teva Pharmaceutical Industries is more favorable than Bausch Health Cos.

Valuation and Earnings

This table compares Bausch Health Cos and Teva Pharmaceutical Industries”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	$9.63 billion	0.28	-$46.00 million	$0.26	28.50
Teva Pharmaceutical Industries	$16.54 billion	1.28	-$1.64 billion	($0.16)	-115.04

Bausch Health Cos has higher earnings, but lower revenue than Teva Pharmaceutical Industries. Teva Pharmaceutical Industries 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.

Institutional & Insider Ownership

78.7% of Bausch Health Cos shares are held by institutional investors. Comparatively, 54.1% of Teva Pharmaceutical Industries shares are held by institutional investors. 20.0% of Bausch Health Cos shares are held by company insiders. Comparatively, 0.6% of Teva Pharmaceutical Industries shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Bausch Health Cos has a beta of 0.48, indicating that its share price is 52% less volatile than the S&P 500. Comparatively, Teva Pharmaceutical Industries has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500.

Profitability

This table compares Bausch Health Cos and Teva Pharmaceutical Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bausch Health Cos	0.99%	-852.36%	5.25%
Teva Pharmaceutical Industries	-0.95%	46.10%	7.18%

Summary

Teva Pharmaceutical Industries beats Bausch Health Cos on 9 of the 15 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 Teva Pharmaceutical Industries

Teva Pharmaceutical Industries Limited develops, manufactures, markets, and distributes generic medicines, specialty medicines, and biopharmaceutical products in North America, Europe, Israel, and internationally. It offers generic medicines in various dosage forms, such as tablets, capsules, injectables, inhalants, liquids, transdermal patches, ointments, and creams; sterile products, hormones, high-potency drugs, and cytotoxic substances in parenteral and solid dosage forms; and generic products with medical devices and combination products. The company focuses on the central nervous system (CNS), respiratory, and oncology areas. It provides active pharmaceutical ingredients, as well as contract manufacturing services; and operates an out-licensing platform that offers a portfolio of products to other pharmaceutical companies. The company also offers BENDEKA and TREANDA injections for the treatment of chronic lymphocytic leukemia and indolent b-cell non-hodgkin’s lymphoma; GRANIX; TRISENOX; LONQUEX; and TEVAGRASTIM/RATIOGRASTIM. In addition, it provides COPAXONE for the treatment of relapsing forms of multiple sclerosis; AJOVY for the preventive treatment of migraine in adults; AUSTEDO for the treatment of neurodegenerative and movement disorders associated with Huntington’s disease and tardive dyskinesia; UZEDY for the treatment of schizophrenia; ProAir RespiClick inhalation powder; QVAR for treatment for asthma; BRALTUS, a long-acting muscarinic antagonist; CINQAIR/CINQAERO injection; DuoResp Spiromax, an inhaled corticosteroid and long-acting beta-agonist bronchodilator; and AirDuo RespiClick fluticasone propionate and salmeterol inhalation powder. The company offers its OTC products under SUDOCREM, NasenDuo, DICLOX FORTE, OLFEN Max, and FLEGAMINA brand names. It has collaboration agreements with MedinCell; Sanofi; Alvotech; and Biolojic Design Ltd., as well as license agreement with MODAG GmbH. The company was founded in 1901 and is based in Tel Aviv, Israel.