Critical Contrast: Teva Pharmaceutical Industries (TEVA) vs. Its Peers

Teva Pharmaceutical Industries (NYSE:TEVA) is one of 897 publicly-traded companies in the “Pharmaceuticals” industry, but how does it compare to its competitors? We will compare Teva Pharmaceutical Industries to related businesses based on the strength of its analyst recommendations, institutional ownership, risk, dividends, earnings, valuation and profitability.

Volatility & Risk

Teva Pharmaceutical Industries has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500. Comparatively, Teva Pharmaceutical Industries’ competitors have a beta of -4.31, indicating that their average share price is 531% less volatile than the S&P 500.

Valuation & Earnings

This table compares Teva Pharmaceutical Industries and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Teva Pharmaceutical Industries	$17.26 billion	$1.41 billion	70.12
Teva Pharmaceutical Industries Competitors	$3.54 billion	$3.17 billion	546.63

Teva Pharmaceutical Industries has higher revenue, but lower earnings than its competitors. Teva Pharmaceutical Industries is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Teva Pharmaceutical Industries	4.08%	32.64%	6.34%
Teva Pharmaceutical Industries Competitors	-2,380.91%	-221.72%	-15.99%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Teva Pharmaceutical Industries and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Teva Pharmaceutical Industries	1	1	12	0	2.79
Teva Pharmaceutical Industries Competitors	7765	13847	25696	1031	2.41

Teva Pharmaceutical Industries presently has a consensus price target of $46.08, suggesting a potential upside of 9.54%. As a group, “Pharmaceuticals” companies have a potential upside of 24.01%. Given Teva Pharmaceutical Industries’ competitors higher probable upside, analysts clearly believe Teva Pharmaceutical Industries has less favorable growth aspects than its competitors.

Institutional and Insider Ownership

54.0% of Teva Pharmaceutical Industries shares are owned by institutional investors. Comparatively, 32.4% of shares of all “Pharmaceuticals” companies are owned by institutional investors. 0.5% of Teva Pharmaceutical Industries shares are owned by company insiders. Comparatively, 14.2% of shares of all “Pharmaceuticals” companies are owned by company insiders. 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

Teva Pharmaceutical Industries beats its competitors on 8 of the 13 factors compared.

Teva Pharmaceutical Industries Company Profile

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.