Analyzing Amphastar Pharmaceuticals (NASDAQ:AMPH) and Teva Pharmaceutical Industries (NYSE:TEVA)

Amphastar Pharmaceuticals (NASDAQ:AMPH) and Teva Pharmaceutical Industries (NYSE:TEVA) are both medical companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, institutional ownership and risk.

Profitability

This table compares Amphastar Pharmaceuticals and Teva Pharmaceutical Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Amphastar Pharmaceuticals	18.64%	20.76%	9.68%
Teva Pharmaceutical Industries	-0.95%	46.10%	7.18%

Valuation and Earnings

This table compares Amphastar Pharmaceuticals 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
Amphastar Pharmaceuticals	$722.68 million	1.56	$159.52 million	$2.67	9.09
Teva Pharmaceutical Industries	$16.63 billion	1.31	-$1.64 billion	($0.16)	-118.78

Amphastar Pharmaceuticals has higher earnings, but lower revenue than Teva Pharmaceutical Industries. Teva Pharmaceutical Industries is trading at a lower price-to-earnings ratio than Amphastar Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Amphastar Pharmaceuticals has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500. Comparatively, Teva Pharmaceutical Industries has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500.

Institutional & Insider Ownership

65.1% of Amphastar Pharmaceuticals shares are owned by institutional investors. Comparatively, 54.0% of Teva Pharmaceutical Industries shares are owned by institutional investors. 27.1% of Amphastar Pharmaceuticals shares are owned by company insiders. Comparatively, 0.6% of Teva Pharmaceutical Industries shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and price targets for Amphastar Pharmaceuticals and Teva Pharmaceutical Industries, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amphastar Pharmaceuticals	0	4	2	1	2.57
Teva Pharmaceutical Industries	1	0	6	2	3.00

Amphastar Pharmaceuticals currently has a consensus target price of $31.60, suggesting a potential upside of 30.26%. Teva Pharmaceutical Industries has a consensus target price of $25.57, suggesting a potential upside of 34.55%. Given Teva Pharmaceutical Industries’ stronger consensus rating and higher possible upside, analysts clearly believe Teva Pharmaceutical Industries is more favorable than Amphastar Pharmaceuticals.

Summary

Amphastar Pharmaceuticals beats Teva Pharmaceutical Industries on 9 of the 15 factors compared between the two stocks.

About Amphastar Pharmaceuticals

Amphastar Pharmaceuticals, Inc., a bio-pharmaceutical company, develops, manufactures, markets, and sells generic and proprietary injectable, inhalation, and intranasal products in the United States, China, and France. It offers BAQSIMI, a nasal spray for the treatment of severe hypoglycemia; Primatene Mist, an over-the-counter epinephrine inhalation product for the temporary relief of mild symptoms of intermittent asthma; Enoxaparin, to prevent and treat deep vein thrombosis; REXTOVY and Naloxone for opioid overdose; Glucagon for injection emergency kit; and Cortrosyn, for use as a diagnostic agent in the screening of patients with adrenocortical insufficiency. The company provides Amphadase, an injection to absorb and disperse other injected drugs; Epinephrine injection for allergic reactions; Lidocaine jelly, an anesthetic product for urological procedures; Lidocaine topical solution for various procedures; Phytonadione injection, a vitamin K1 injection for newborn babies; emergency syringe products; morphine injection for use with patient-controlled analgesia pumps; and Lorazepam injection for surgery and medical procedures. In addition, it offers Neostigmine methylsulfate injection to treat myasthenia gravis and to reverse the effects of muscle relaxants; Isoproterenol hydrochloride injection for mild or transient episodes of heart block; Ganirelix Acetate injection for the inhibition of premature luteinizing hormone surges; Vasopressin to increase blood pressure; and Regadenoson, a stress agent for radionuclide myocardial perfusion imaging. Further, the company distributes recombinant human insulin APIs and porcine insulin API. Additionally, it develops generic product candidates, such as injectable, inhalation, and analytical technologies; biosimial product candidates; and intranasal epinephrine for the treatment of allergic reactions. The company was founded in 1996 and is headquartered in Rancho Cucamonga, California.

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.