Comparing China SXT Pharmaceuticals (NASDAQ:SXTC) and United Therapeutics (NASDAQ:UTHR)

China SXT Pharmaceuticals (NASDAQ:SXTC) and United Therapeutics (NASDAQ:UTHR) are both medical companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, earnings, analyst recommendations, institutional ownership, dividends, valuation and risk.

Profitability

This table compares China SXT Pharmaceuticals and United Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
China SXT Pharmaceuticals	N/A	N/A	N/A
United Therapeutics	40.36%	18.73%	16.49%

Risk and Volatility

China SXT Pharmaceuticals has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500. Comparatively, United Therapeutics has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500.

Valuation and Earnings

This table compares China SXT Pharmaceuticals and United Therapeutics”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
China SXT Pharmaceuticals	$1.74 million	129.96	-$3.30 million	N/A	N/A
United Therapeutics	$2.88 billion	6.55	$1.20 billion	$25.62	16.30

United Therapeutics has higher revenue and earnings than China SXT Pharmaceuticals.

Institutional & Insider Ownership

5.0% of China SXT Pharmaceuticals shares are owned by institutional investors. Comparatively, 94.1% of United Therapeutics shares are owned by institutional investors. 4.0% of China SXT Pharmaceuticals shares are owned by company insiders. Comparatively, 10.3% of United Therapeutics 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.

Analyst Recommendations

This is a summary of current ratings and target prices for China SXT Pharmaceuticals and United Therapeutics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China SXT Pharmaceuticals	0	0	0	0	0.00
United Therapeutics	0	4	9	0	2.69

United Therapeutics has a consensus target price of $438.85, suggesting a potential upside of 5.10%. Given United Therapeutics’ stronger consensus rating and higher probable upside, analysts plainly believe United Therapeutics is more favorable than China SXT Pharmaceuticals.

Summary

United Therapeutics beats China SXT Pharmaceuticals on 10 of the 12 factors compared between the two stocks.

About China SXT Pharmaceuticals

China SXT Pharmaceuticals, Inc., a pharmaceutical company, engages in the research, development, manufacture, marketing, and sale of traditional Chinese medicine pieces (TCMP) in China. The company offers advanced, fine, and regular TCMP products, and raw medicinal material, such as ChenXiang, SanQiFen, HongQi, SuMu, JiangXiang, CuYanHuSuo, XiaTianWu, LuXueJing, XueJie, ChaoSuanZaoRen, HongQuMi, ChuanBeiMu, HuangShuKuiHua, WuWeiZi, DingXiang, RenShen, QingGuo, JueMingZi, and ShaRen. It provides its products under the Suxuantang, Hui Chun Tang, and Tong Ren Tang brands. The company had an end-customer base of pharmaceutical companies, chain pharmacies, and hospitals in 10 provinces and municipalities in China. China SXT Pharmaceuticals, Inc. was founded in 2005 and is headquartered in Taizhou, China.

About United Therapeutics

United Therapeutics Corporation, a biotechnology company, engages in the development and commercialization of products to address the unmet medical needs of patients with chronic and life-threatening diseases in the United States and internationally. The company offers Tyvaso DPI, an inhaled dry powder via pre-filled and single-use cartridges; Tyvaso, an inhaled solution via ultrasonic nebulizer; Remodulin (treprostinil) injection to treat patients with pulmonary arterial hypertension (PAH) to diminish symptoms associated with exercise; Orenitram, a tablet dosage form of treprostinil, to delay disease progression and improve exercise capacity in PAH patients; and Adcirca, an oral PDE-5 inhibitor to enhance the exercise ability in PAH patients. It also markets and sells Unituxin (dinutuximab) injection, a monoclonal antibody for treating high-risk neuroblastoma; and Remunity Pump, which contains a pump and separate controller for Remodulin. In addition, the company engages in developing RemoPro and Ralinepag for the treatment of PAH; Aurora-GT, a gene therapy product to rebuild the blood vessels in the lungs; and Nebulized Tyvaso, for the treatment of idiopathic pulmonary fibrosis, as well as xenografts, which are development-stage organ products. It has licensing and collaboration agreements with DEKA Research & Development Corp. to develop a semi-disposable system for the subcutaneous delivery of treprostinil; MannKind Corporation to develop and license treprostinil inhalation powder and the Dreamboat device; and Arena Pharmaceuticals, Inc. to develop Ralinepag. The company was incorporated in 1996 and is headquartered in Silver Spring, Maryland.