Head-To-Head Analysis: Theravance Biopharma (NASDAQ:TBPH) and Redhill Biopharma (NASDAQ:RDHL)

Theravance Biopharma (NASDAQ:TBPH) and Redhill Biopharma (NASDAQ:RDHL) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, valuation, earnings, profitability, institutional ownership and dividends.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Theravance Biopharma and Redhill Biopharma, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Theravance Biopharma	0	4	2	2	2.75
Redhill Biopharma	1	0	0	0	1.00

Theravance Biopharma currently has a consensus target price of $21.83, indicating a potential upside of 31.21%. Given Theravance Biopharma’s stronger consensus rating and higher possible upside, analysts plainly believe Theravance Biopharma is more favorable than Redhill Biopharma.

Institutional and Insider Ownership

99.1% of Theravance Biopharma shares are held by institutional investors. Comparatively, 7.2% of Redhill Biopharma shares are held by institutional investors. 6.9% of Theravance Biopharma shares are held by insiders. Comparatively, 6.8% of Redhill Biopharma shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Theravance Biopharma has a beta of 0.17, meaning that its stock price is 83% less volatile than the S&P 500. Comparatively, Redhill Biopharma has a beta of 4.93, meaning that its stock price is 393% more volatile than the S&P 500.

Earnings & Valuation

This table compares Theravance Biopharma and Redhill Biopharma”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Theravance Biopharma	$107.46 million	7.97	$105.89 million	$2.03	8.20
Redhill Biopharma	$9.55 million	0.44	-$8.27 million	$1,046.75	0.00

Theravance Biopharma has higher revenue and earnings than Redhill Biopharma. Redhill Biopharma is trading at a lower price-to-earnings ratio than Theravance Biopharma, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Theravance Biopharma and Redhill Biopharma’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Theravance Biopharma	98.54%	16.76%	9.23%
Redhill Biopharma	N/A	N/A	N/A

Summary

Theravance Biopharma beats Redhill Biopharma on 13 of the 15 factors compared between the two stocks.

About Theravance Biopharma

Theravance Biopharma, Inc. is a diversified biopharmaceutical company primarily focused on the discovery, development and commercialization of organ-selective medicines. Its purpose is to pioneer a new generation of small molecule drugs designed to better meet patient needs. Its research is focused in the areas of inflammation and immunology.
In pursuit of its purpose, Theravance Biopharma applies insights and innovation at each stage of its business and utilizes its internal capabilities and those of partners around the world. The Company applies organ-selective expertise to target disease biologically, to discover and develop medicines that may expand the therapeutic index with the goal of maximizing efficacy and limiting systemic side effects. These efforts leverage years of experience in developing lung-selective medicines to treat respiratory disease, including FDA-approved YUPELRI® (revefenacin) inhalation solution indicated for the maintenance treatment of patients with chronic obstructive pulmonary disease (COPD). Its pipeline of internally discovered programs is targeted to address significant patient needs.
Theravance Biopharma has an economic interest in potential future payments from Glaxo Group Limited or one of its affiliates (GSK) pursuant to its agreements with Innoviva, Inc. relating to certain programs, including TRELEGY.
For more information, please visit www.theravance.com.

About Redhill Biopharma

RedHill Biopharma Ltd., a specialty biopharmaceutical company, primarily focuses on gastrointestinal and infectious diseases. The company develops and commercializes Talicia for the treatment of H. pylori infection in adults; and Aemcolo for the treatment of travelers' diarrhea in adults. Its pipeline consists of five therapeutic candidates, which are in clinical development include opaganib for treating patients hospitalized with SARS-CoV-2 severe COVID-19 pneumonia, advanced unresectable cholangiocarcinoma, prostate cancer, and nuclear radiation protection; RHB-107 (upamostat) for treating outpatients infected with SARS-CoV-2 (COVID-19 disease) and advanced unresectable cholangiocarcinoma; RHB-104 for Crohn's disease; RHB-102 (Bekinda) for the treatment of acute gastroenteritis and gastritis, irritable bowel syndrome with diarrhea, and oncology support anti-emetic; and RHB-204 for pulmonary nontuberculous mycobacteria infections caused by mycobacterium avium complex. The company was incorporated in 2009 and is headquartered in Tel Aviv, Israel.