BioMarin Pharmaceutical (NASDAQ: BMRN) and Sinovac Biotech (NASDAQ:SVA) are both medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, dividends, risk and institutional ownership.

Profitability

This table compares BioMarin Pharmaceutical and Sinovac Biotech’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BioMarin Pharmaceutical -12.45% -4.60% -3.09%
Sinovac Biotech N/A N/A N/A

Institutional and Insider Ownership

96.0% of BioMarin Pharmaceutical shares are owned by institutional investors. Comparatively, 31.5% of Sinovac Biotech shares are owned by institutional investors. 1.9% of BioMarin Pharmaceutical shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

BioMarin Pharmaceutical has a beta of 1.77, meaning that its share price is 77% more volatile than the S&P 500. Comparatively, Sinovac Biotech has a beta of 0.1, meaning that its share price is 90% less volatile than the S&P 500.

Earnings and Valuation

This table compares BioMarin Pharmaceutical and Sinovac Biotech’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
BioMarin Pharmaceutical $1.12 billion 13.04 -$630.21 million ($0.90) -92.12
Sinovac Biotech $67.41 million 6.57 -$1.07 million ($0.11) -70.64

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for BioMarin Pharmaceutical and Sinovac Biotech, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BioMarin Pharmaceutical 0 6 16 0 2.73
Sinovac Biotech 0 0 0 0 N/A

BioMarin Pharmaceutical presently has a consensus target price of $113.52, indicating a potential upside of 36.92%. Given BioMarin Pharmaceutical’s higher possible upside, equities analysts clearly believe BioMarin Pharmaceutical is more favorable than Sinovac Biotech.

Summary

BioMarin Pharmaceutical beats Sinovac Biotech on 7 of the 12 factors compared between the two stocks.

About BioMarin Pharmaceutical

BioMarin Pharmaceutical Inc. is a biotechnology company. The Company develops and commercializes pharmaceuticals for various diseases and medical conditions. As of December 31, 2016, the Company’s therapy portfolio consisted of five products, and multiple clinical and pre-clinical product candidates. Its commercial products include Aldurazyme (laronidase) for Mucopolysaccharidosis I (MPS I), Firdapse (amifampridine phosphate) for Lambert Eaton Myasthenic Syndrome (LEMS), Kuvan (sapropterin dihydrochloride) for phenylketonuria (PKU), Naglazyme (galsulfase) for Mucopolysaccharidosis VI (MPS VI) and Vimizim (elosulfase alpha) for Mucopolysaccharidosis IV Type A (MPS IV A). The Company is conducting clinical trials on various product candidates for the treatment of various diseases. Its clinical product candidates include Brineura, pegvaliase, vosoritide, BMN 270 and BMN 250.

About Sinovac Biotech

Sinovac Biotech Ltd. (Sinovac) is a holding company. The Company is a biopharmaceutical company that focuses on the research, development, manufacturing and commercialization of vaccines that protect against human infectious diseases, including hepatitis A, hepatitis B, seasonal influenza, Haemagglutinase5 Neuraminidase1 (H5N1) and Influenza A (H1N1) pandemic influenza and mumps. The Company’s pipeline consists of vaccine candidates in the clinical and pre-clinical development Phases in China. The Company is engaged in the sales, marketing, manufacturing and development of vaccines for infectious disease. The Company develops various products, including Healive, Bilive, Anflu, Panflu Whole Viron Pandemic Influenza Vaccine, Split Viron Pandemic Influenza Vaccine, Panflu.1, RabEnd, Mumps Vaccine, Enterovirus 71 (EV71) Vaccine, Pneumococcal Polysaccharide Vaccine, Pneumococcal Conjugate Vaccine, Rubella Vaccine, Varicella Vaccine and Sabin Inactivated Polio Vaccine.

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