Otsuka (OTCMKTS:OTSKY) vs. PT Kalbe Farma Tbk. (OTCMKTS:PTKFF) Critical Analysis

Otsuka (OTCMKTS:OTSKY) and PT Kalbe Farma Tbk. (OTCMKTS:PTKFF) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.

Profitability

This table compares Otsuka and PT Kalbe Farma Tbk.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Otsuka	14.76%	12.52%	9.21%
PT Kalbe Farma Tbk.	N/A	N/A	N/A

Earnings & Valuation

This table compares Otsuka and PT Kalbe Farma Tbk.”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Otsuka	$16.51 billion	2.19	$2.43 billion	$2.30	14.62
PT Kalbe Farma Tbk.	N/A	N/A	N/A	$43.52	0.00

Otsuka has higher revenue and earnings than PT Kalbe Farma Tbk.. PT Kalbe Farma Tbk. is trading at a lower price-to-earnings ratio than Otsuka, indicating that it is currently the more affordable of the two stocks.

Dividends

Otsuka pays an annual dividend of $0.26 per share and has a dividend yield of 0.8%. PT Kalbe Farma Tbk. pays an annual dividend of $14.45 per share and has a dividend yield of 24,512.3%. Otsuka pays out 11.3% of its earnings in the form of a dividend. PT Kalbe Farma Tbk. pays out 33.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Ratings

This is a summary of recent ratings and target prices for Otsuka and PT Kalbe Farma Tbk., as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Otsuka	1	2	1	0	2.00
PT Kalbe Farma Tbk.	0	0	0	0	0.00

Institutional and Insider Ownership

21.6% of PT Kalbe Farma Tbk. shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Otsuka beats PT Kalbe Farma Tbk. on 8 of the 11 factors compared between the two stocks.

About Otsuka

Otsuka Holdings Co., Ltd. engages in the pharmaceuticals, nutraceuticals, consumer products, and other businesses worldwide. The company develops pharmaceutical products in the fields of psychiatry, neurology, oncology, cardiovascular and renal system, digestive system, ophthalmology, and diagnostics, as well as intravenous solutions and medical devices. It also provides clinical testing, medical equipment, food products, cosmetics, functional food products, chemical products, soft drinks, beverages, analytical and measurement instruments, nutritional products, vehicle headlight testers, synthetic resin molded products, paper products, and insecticide and toiletry products. In addition, the company offers IT solution services; adhesive tapes; flaky titanate and compounds; IV solutions; infusion and clinical nutrition products; hydrazine; plant-based food products; reinsurance underwriting services; wine; stable isotopes; food supplements; urinary tract health products; software and services for management of mental healthcare systems; anticancer drugs; terracess; bio-pesticides; dietetic food products; spring and mineral water; and polyolefin foams. Further, it engages in the warehousing and transport, medical device operational management, shared service, environmental health management, and venture capital and incubation businesses; rental of medical devices and related products; purchase and sale of agricultural products; import and export trading business; tuberculosis research and development activities; manufacturing and development of xenotransplantation products; and processing and marketing of functional films, as well as planning, design, production, and construction of ceramic boards and arts, ceramic walls, reliefs, terracotta, ceramic OT and portraits, and ceramic sign boards; and operation of travel agency, and Hotel Ridge and California Table. Otsuka Holdings Co., Ltd. was founded in 1921 and is headquartered in Tokyo, Japan.

About PT Kalbe Farma Tbk.

PT Kalbe Farma Tbk., together with its subsidiaries, develops, manufactures, and trades in pharmaceutical products in Indonesia. The company operates through four divisions: Prescription Pharmaceuticals; Consumer Health; Nutritionals; and Distribution and Logistic. The company provides prescription/ethical; consumer health; nutritionals; distribution and logistics; health services; medical devices; biopharma; animal health; international business; and E-health products. It operates Mitrasana Clinics, a health care service. In addition, the company provides health screening services; operates as an agent and representative for biotechnology products; distributes consumer products, medical equipment, cosmetics, and other trading products; and trades in medical and laboratory equipment and supplies, raw materials for pharmaceutical products, and consumable products for hemodialysis therapy, as well as offers advertising services. PT Kalbe Farma Tbk. was incorporated in 1966 and is headquartered in Jakarta, Indonesia.