Zevra Therapeutics (NASDAQ:ZVRA – Get Free Report) and Bausch Health Cos (NYSE:BHC – Get Free Report) are both healthcare companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, profitability, earnings and risk.
Profitability
This table compares Zevra Therapeutics and Bausch Health Cos’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Zevra Therapeutics | 42.82% | 54.54% | 34.15% |
| Bausch Health Cos | -10.12% | -561.95% | 6.31% |
Insider & Institutional Ownership
35.0% of Zevra Therapeutics shares are owned by institutional investors. Comparatively, 78.7% of Bausch Health Cos shares are owned by institutional investors. 3.7% of Zevra Therapeutics shares are owned by insiders. Comparatively, 20.7% of Bausch Health Cos shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Risk & Volatility
Zevra Therapeutics has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500. Comparatively, Bausch Health Cos has a beta of 0.37, suggesting that its share price is 63% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Zevra Therapeutics and Bausch Health Cos, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Zevra Therapeutics | 0 | 1 | 9 | 1 | 3.00 |
| Bausch Health Cos | 1 | 5 | 0 | 1 | 2.14 |
Zevra Therapeutics currently has a consensus target price of $27.14, indicating a potential upside of 163.27%. Bausch Health Cos has a consensus target price of $8.00, indicating a potential upside of 15.52%. Given Zevra Therapeutics’ stronger consensus rating and higher possible upside, equities analysts plainly believe Zevra Therapeutics is more favorable than Bausch Health Cos.
Valuation and Earnings
This table compares Zevra Therapeutics and Bausch Health Cos”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Zevra Therapeutics | $136.07 million | 4.50 | $83.23 million | $0.92 | 11.21 |
| Bausch Health Cos | $10.27 billion | 0.25 | $157.00 million | ($2.96) | -2.34 |
Bausch Health Cos has higher revenue and earnings than Zevra Therapeutics. Bausch Health Cos is trading at a lower price-to-earnings ratio than Zevra Therapeutics, indicating that it is currently the more affordable of the two stocks.
Summary
Zevra Therapeutics beats Bausch Health Cos on 10 of the 14 factors compared between the two stocks.
About Zevra Therapeutics
Zevra Therapeutics, Inc. discovers and develops various proprietary prodrugs to treat serious medical conditions in the United States. The company develops its products through Ligand Activated Therapy platform. Its lead product candidate is KP1077, consisting of KP1077IH, which is under Phase 2 clinical trial for the treatment of idiopathic hypersomnia, and KP1077N, which is under Phase ½ clinical trial to treat narcolepsy. The company is also developing Celiprolol, a prodrug product candidate that is under Phase 1/2 clinical trial for the treatment of vascular Ehlers Danlos syndrome. In addition, it offers AZSTARYS, a once-daily treatment for attention deficit hyperactivity disorder in patients aged six years and older; OLPRUVA to treat urea cycle disorders; and Arimoclomol for the treatment of niemann pick disease type C, an ultra-rare neurodegenerative lysosomal storage disorder. The company has collaboration and license agreement with Commave Therapeutics SA to develop, manufacture and commercialize the company’s product candidates containing SDX and d-methylphenidate; and license agreement with Acer and Relief Therapeutics, Inc. to develop and commercialize rights for OLPRUVA. The company was formerly known as KemPharm, Inc. and changed its name to Zevra Therapeutics, Inc. in February 2023. Zevra Therapeutics, Inc. was incorporated in 2006 and is headquartered in Celebration, Florida.
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.
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