Teva Pharmaceutical Industries (NYSE:TEVA – Get Free Report) and Sol-Gel Technologies (NASDAQ:SLGL – Get Free Report) are both medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, dividends, profitability, risk and institutional ownership.
Volatility and Risk
Teva Pharmaceutical Industries has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500. Comparatively, Sol-Gel Technologies has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500.
Profitability
This table compares Teva Pharmaceutical Industries and Sol-Gel Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Teva Pharmaceutical Industries | -0.95% | 46.10% | 7.18% |
| Sol-Gel Technologies | -14.25% | -11.80% | -9.39% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Teva Pharmaceutical Industries | 1 | 0 | 6 | 2 | 3.00 |
| Sol-Gel Technologies | 0 | 1 | 0 | 0 | 2.00 |
Teva Pharmaceutical Industries presently has a consensus target price of $25.57, suggesting a potential upside of 27.54%. Given Teva Pharmaceutical Industries’ stronger consensus rating and higher possible upside, research analysts clearly believe Teva Pharmaceutical Industries is more favorable than Sol-Gel Technologies.
Earnings and Valuation
This table compares Teva Pharmaceutical Industries and Sol-Gel Technologies”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Teva Pharmaceutical Industries | $16.54 billion | 1.39 | -$1.64 billion | ($0.16) | -125.31 |
| Sol-Gel Technologies | $11.54 million | 9.91 | -$10.58 million | ($1.23) | -33.33 |
Sol-Gel Technologies has lower revenue, but higher earnings than Teva Pharmaceutical Industries. Teva Pharmaceutical Industries is trading at a lower price-to-earnings ratio than Sol-Gel Technologies, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
54.1% of Teva Pharmaceutical Industries shares are owned by institutional investors. Comparatively, 26.2% of Sol-Gel Technologies shares are owned by institutional investors. 0.6% of Teva Pharmaceutical Industries shares are owned by insiders. Comparatively, 66.5% of Sol-Gel Technologies shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Summary
Teva Pharmaceutical Industries beats Sol-Gel Technologies on 10 of the 15 factors compared between the two stocks.
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.
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.
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