Aegerion Pharmaceuticals (NASDAQ: AEGR) and Valeant Pharmaceuticals International (NYSE:VRX) are both healthcare companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, profitability and valuation.

Risk & Volatility

Aegerion Pharmaceuticals has a beta of 0.5, meaning that its stock price is 50% less volatile than the S&P 500. Comparatively, Valeant Pharmaceuticals International has a beta of -0.36, meaning that its stock price is 136% less volatile than the S&P 500.

Profitability

This table compares Aegerion Pharmaceuticals and Valeant Pharmaceuticals International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aegerion Pharmaceuticals -75.07% N/A -29.21%
Valeant Pharmaceuticals International -12.40% 59.89% 5.37%

Valuation and Earnings

This table compares Aegerion Pharmaceuticals and Valeant Pharmaceuticals International’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Aegerion Pharmaceuticals N/A N/A N/A ($5.97) -0.31
Valeant Pharmaceuticals International $9.22 billion 0.46 $3.75 billion ($3.28) -3.70

Valeant Pharmaceuticals International has higher revenue and earnings than Aegerion Pharmaceuticals. Valeant Pharmaceuticals International is trading at a lower price-to-earnings ratio than Aegerion Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and price targets for Aegerion Pharmaceuticals and Valeant Pharmaceuticals International, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aegerion Pharmaceuticals 0 2 0 0 2.00
Valeant Pharmaceuticals International 3 12 4 0 2.05

Aegerion Pharmaceuticals presently has a consensus target price of $1.50, suggesting a potential downside of 19.79%. Valeant Pharmaceuticals International has a consensus target price of $17.74, suggesting a potential upside of 46.22%. Given Valeant Pharmaceuticals International’s stronger consensus rating and higher possible upside, analysts plainly believe Valeant Pharmaceuticals International is more favorable than Aegerion Pharmaceuticals.

Insider and Institutional Ownership

84.9% of Aegerion Pharmaceuticals shares are held by institutional investors. Comparatively, 50.4% of Valeant Pharmaceuticals International shares are held by institutional investors. 4.6% of Aegerion Pharmaceuticals shares are held by insiders. Comparatively, 5.9% of Valeant Pharmaceuticals International shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Valeant Pharmaceuticals International beats Aegerion Pharmaceuticals on 9 of the 11 factors compared between the two stocks.

Aegerion Pharmaceuticals Company Profile

Aegerion Pharmaceuticals, Inc. is a biopharmaceutical company engaged in the development and commercialization of therapies for patients with debilitating rare diseases. It operates through pharmaceuticals segment. Its products include lomitapide and metreleptin. Lomitapide is a small molecule microsomal triglyceride transfer protein (MTP) inhibitor. Lomitapide received marketing approval under the brand name Juxtapid (lomitapide) capsules from the United States Food and Drug Administration (FDA) as an adjunct to a low-fat diet and other lipid-lowering treatments. It also received marketing authorization for lomitapide in the European Union (EU) under the brand name LOJUXTA (lomitapide) hard capsules (LOJUXTA) as a treatment for HoFH in adults. Metreleptin is a recombinant human leptin analog that exerts its function by binding to and activating the human leptin receptor. Metreleptin is marketed in the United States under the brand name MYALEPT (metreleptin) for injection (MYALEPT).

Valeant Pharmaceuticals International Company Profile

Valeant Pharmaceuticals International, Inc. is a pharmaceutical and medical device company. The Company is engaged in developing and marketing a range of branded, generic and branded generic pharmaceuticals, over-the-counter (OTC) products, and medical devices (contact lenses, intraocular lenses, ophthalmic surgical equipment, and aesthetics devices). It operates through two segments: Developed markets and Emerging markets. In the Developed Markets segment, it focuses on the areas of dermatology, neurology, gastrointestinal disorders, and eye health therapeutic classes. In the Emerging Markets segment, it focuses on primarily on branded generics, OTC products and medical devices. Its pharmaceutical products include Xifaxan, Solodyn and Glumetza. Its OTC products include PreserVision, Biotrue and Boston. Its other generic products include Latanoprost and Metronidazole. Its ophthalmic surgical products include intraocular lenses, such as Akreos, enVista, Crystalens and Trulign.

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