Allergan PLC. (NYSE: AGN) and Mylan N.V. (NASDAQ:MYL) are both large-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.

Dividends

Allergan PLC. pays an annual dividend of $2.80 per share and has a dividend yield of 1.3%. Mylan N.V. does not pay a dividend. Allergan PLC. pays out 9.9% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares Allergan PLC. and Mylan N.V.’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Allergan PLC. $15.07 billion 4.97 $6.15 billion $28.15 7.95
Mylan N.V. $12.01 billion 1.37 $3.92 billion $1.22 25.07

Allergan PLC. has higher revenue and earnings than Mylan N.V.. Allergan PLC. is trading at a lower price-to-earnings ratio than Mylan N.V., indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Allergan PLC. and Mylan N.V.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Allergan PLC. 79.17% 7.37% 4.17%
Mylan N.V. 5.51% 22.42% 7.54%

Institutional and Insider Ownership

82.1% of Allergan PLC. shares are owned by institutional investors. Comparatively, 72.0% of Mylan N.V. shares are owned by institutional investors. 0.4% of Allergan PLC. shares are owned by company insiders. Comparatively, 0.7% of Mylan N.V. shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk & Volatility

Allergan PLC. has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500. Comparatively, Mylan N.V. has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Allergan PLC. and Mylan N.V., as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Allergan PLC. 0 5 13 0 2.72
Mylan N.V. 0 7 10 1 2.67

Allergan PLC. presently has a consensus target price of $277.76, indicating a potential upside of 24.08%. Mylan N.V. has a consensus target price of $43.27, indicating a potential upside of 41.47%. Given Mylan N.V.’s higher possible upside, analysts plainly believe Mylan N.V. is more favorable than Allergan PLC..

Summary

Allergan PLC. beats Mylan N.V. on 10 of the 17 factors compared between the two stocks.

About Allergan PLC.

Allergan, Inc. is a multi-specialty healthcare company. The Company focuses on developing and commercializing pharmaceuticals, biologics, medical devices and over-the-counter (OTC) products. It discovers, develops and commercializes a range of products for the ophthalmic, neurological, medical aesthetics, medical dermatology, breast aesthetics, urological and other specialty markets. The Company operates in two segments: specialty pharmaceuticals and medical devices. The specialty pharmaceuticals segment produces products, including ophthalmic products for dry eye, glaucoma, inflammation, infection, allergy and retinal disease; Botox for therapeutic and aesthetic indications; skin care products for acne, psoriasis, eyelash growth and prescription and OTC skin care products, and urologics products. The medical devices segment produces medical devices, including breast implants for augmentation, revision and reconstructive surgery and tissue expanders, and facial aesthetics products.

About Mylan N.V.

Mylan N.V. is a global pharmaceutical company. The Company develops, licenses, manufactures, markets and distributes generic and branded generic products for resale by others; specialty pharmaceuticals, and active pharmaceutical ingredients (APIs). It operates through two segments: Generics and Specialty. Its Generics segment primarily develops, manufactures, sells and distributes generic or branded generic pharmaceutical products in tablet, capsule, injectable, transdermal patch, gel, cream or ointment form, as well as API. Its Specialty segment is focused on respiratory and allergy therapies. The EpiPen Auto-Injector, which is used in the treatment of severe allergic reactions, is an epinephrine auto-injector. Its Perforomist Inhalation Solution is a long-acting beta2-adrenergic agonist indicated for the maintenance treatment of bronchoconstriction in chronic obstructive pulmonary disorder (COPD) patients. The Company also markets ULTIVA, which is an analgesic agent.

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