Reviewing Covance (CVD) and Biohaven Pharmaceutical (BHVN)
Covance (NYSE: CVD) and Biohaven Pharmaceutical (NYSE:BHVN) are both biotechnology & medical research – nec companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, institutional ownership, earnings, profitability and dividends.
Insider & Institutional Ownership
47.8% of Biohaven Pharmaceutical shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This table compares Covance and Biohaven Pharmaceutical’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current recommendations and price targets for Covance and Biohaven Pharmaceutical, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Biohaven Pharmaceutical has a consensus target price of $38.00, indicating a potential upside of 17.68%. Given Biohaven Pharmaceutical’s higher probable upside, analysts plainly believe Biohaven Pharmaceutical is more favorable than Covance.
Earnings and Valuation
This table compares Covance and Biohaven Pharmaceutical’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Biohaven Pharmaceutical||N/A||N/A||-$63.67 million||($5.22)||-6.19|
Biohaven Pharmaceutical is trading at a lower price-to-earnings ratio than Covance, indicating that it is currently the more affordable of the two stocks.
Covance beats Biohaven Pharmaceutical on 5 of the 8 factors compared between the two stocks.
Covance Inc. is engaged in drug development services. The Company provides a range of early-stage and late-stage product development services to the pharmaceutical and biotechnology industries. The Company also provides laboratory testing services to the chemical, agrochemical and food industries. The Company operates in two segments: early development services, and late-stage development services. The early development services include lead optimization services, preclinical services and clinical pharmacology services. The late-stage development services include central laboratory, Phase II-IV clinical development, and market access services.
About Biohaven Pharmaceutical
Biohaven Pharmaceutical Holding Company Ltd. is a United States-based biopharmaceutical company. The Company is engaged in the identification and development of clinical-stage compounds targeting orphan neurologic indications and other neurological pathways. It has a portfolio of multiple late-stage drug candidates. Its pipeline includes BHV-0223, which is a formulation of a glutamate-modulating agent; BHV-4157, which is a new chemical entity (NCE) that modulates glutamate, and BHV-5000, which is an in-licensed investigational agent of the Company targeting N-Methyl-D-Aspartate (NMDA) receptor antagonism. Its clinical compound, trigriluzole, is indicated for neurodegenerative diseases and cancer indications, among others. Its pipeline also includes BHV-3000 and BHV-3500, which are in-licensed by the Company for a neurologic indication. It focuses on advancing other mechanistic approaches in orphan and neuroscience indications, and is exploring licenses for additional compounds.
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