Financial Contrast: Chugai Pharmaceutical (OTCMKTS:CHGCY) vs. Bausch Health Cos (NYSE:BHC)

Bausch Health Cos (NYSE:BHC) and Chugai Pharmaceutical (OTCMKTS:CHGCY) are both healthcare companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, earnings, dividends, risk and valuation.

Institutional and Insider Ownership

78.7% of Bausch Health Cos shares are held by institutional investors. Comparatively, 0.0% of Chugai Pharmaceutical shares are held by institutional investors. 20.7% of Bausch Health Cos shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings for Bausch Health Cos and Chugai Pharmaceutical, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bausch Health Cos	1	6	0	0	1.86
Chugai Pharmaceutical	0	3	1	1	2.60

Bausch Health Cos presently has a consensus price target of $8.00, suggesting a potential upside of 36.64%. Given Bausch Health Cos’ higher probable upside, analysts plainly believe Bausch Health Cos is more favorable than Chugai Pharmaceutical.

Volatility & Risk

Bausch Health Cos has a beta of 0.37, indicating that its stock price is 63% less volatile than the S&P 500. Comparatively, Chugai Pharmaceutical has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500.

Valuation & Earnings

This table compares Bausch Health Cos and Chugai Pharmaceutical”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bausch Health Cos	$10.27 billion	0.21	$157.00 million	($2.96)	-1.98
Chugai Pharmaceutical	$8.41 billion	8.12	$2.91 billion	$0.92	22.55

Chugai Pharmaceutical has lower revenue, but higher earnings than Bausch Health Cos. Bausch Health Cos is trading at a lower price-to-earnings ratio than Chugai Pharmaceutical, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Bausch Health Cos and Chugai Pharmaceutical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bausch Health Cos	-10.12%	-561.95%	6.31%
Chugai Pharmaceutical	35.09%	23.76%	19.92%

Summary

Chugai Pharmaceutical beats Bausch Health Cos on 11 of the 15 factors compared between the two stocks.

About Bausch Health Cos

Bausch Health Companies Inc. operates as a diversified specialty pharmaceutical and medical device company in the United States and internationally. It develops, manufactures, and markets a range of products primarily in gastroenterology, hepatology, neurology, dermatology, international pharmaceuticals, over-the-counter (OTC) products, aesthetic medical devices, and eye health. The company operates through five segments: Salix, International, Solta Medical, Diversified, and Bausch + Lomb. The Salix segment provides gastroenterology products in the United States. The International segment sells aesthetic medical devices, branded pharmaceuticals, generic pharmaceuticals, and OTC products internationally. The Solta Medical segment engages in the sale of aesthetic medical devices. The Diversified segment offers pharmaceutical products in the areas of neurology and certain other therapeutic classes; generic products; ortho dermatologic; and dentistry products in the United States. The Bausch + Lomb segment offers products in the areas of vision care, surgical, and ophthalmic pharmaceuticals products. The company was formerly known as Valeant Pharmaceuticals International, Inc. and changed its name to Bausch Health Companies Inc. in July 2018. Bausch Health Companies Inc. is headquartered in Laval, Canada.

About Chugai Pharmaceutical

Chugai Pharmaceutical Co., Ltd., together with its subsidiaries, engages in the research, development, manufacture, sale, importation, and exportation of pharmaceuticals in Japan and internationally. The company’s products for oncology primarily include Avastin, FoundationOne, Polivy, Rozlytrek, Tecentriq, Perjeta, Alecensa, Herceptin, Kadcyla, Rituxan, and Gazyva; Edirol, an Osteoporosis agent; Mircera, an erythropoiesis agent; Oxarol, an agent for secondary hyperparathyroidism; and other diseases comprise Hemlibra, CellCept, Bonviva, Tamiflu, Evrysdi, Ronapreve, Vabysmo, and Enspryng. It has various development product candidates in the areas of oncology, immunology, neuroscience, hematology, ophthalmology, and other diseases. Chugai Pharmaceutical Co., Ltd. has strategic alliances and collaboration with Roche Group. The company was founded in 1925 and is headquartered in Chuo, Japan. Chugai Pharmaceutical Co., Ltd. operates as a subsidiary of Roche Holding Ltd.