Siga Technologies (OTCMKTS: SIGA) and Jazz Pharmaceuticals PLC (NASDAQ:JAZZ) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, earnings, valuation, dividends and analyst recommendations.
This is a summary of recent ratings and price targets for Siga Technologies and Jazz Pharmaceuticals PLC, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Jazz Pharmaceuticals PLC||0||5||16||0||2.76|
Jazz Pharmaceuticals PLC has a consensus price target of $181.71, suggesting a potential upside of 32.45%. Given Jazz Pharmaceuticals PLC’s higher probable upside, analysts clearly believe Jazz Pharmaceuticals PLC is more favorable than Siga Technologies.
Valuation and Earnings
This table compares Siga Technologies and Jazz Pharmaceuticals PLC’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Siga Technologies||$14.99 million||23.64||-$39.69 million||($0.49)||-9.16|
|Jazz Pharmaceuticals PLC||$1.49 billion||5.53||$396.83 million||$6.07||22.60|
Jazz Pharmaceuticals PLC has higher revenue and earnings than Siga Technologies. Siga Technologies is trading at a lower price-to-earnings ratio than Jazz Pharmaceuticals PLC, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
7.2% of Siga Technologies shares are owned by institutional investors. Comparatively, 90.5% of Jazz Pharmaceuticals PLC shares are owned by institutional investors. 4.7% of Siga Technologies shares are owned by insiders. Comparatively, 4.3% of Jazz Pharmaceuticals PLC shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Risk and Volatility
Siga Technologies has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500. Comparatively, Jazz Pharmaceuticals PLC has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.
This table compares Siga Technologies and Jazz Pharmaceuticals PLC’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Jazz Pharmaceuticals PLC||23.58%||22.92%||10.07%|
Jazz Pharmaceuticals PLC beats Siga Technologies on 10 of the 12 factors compared between the two stocks.
Siga Technologies Company Profile
SIGA Technologies, Inc. is engaged in the development and commercialization of solutions for various unmet medical needs and biothreats. The Company’s lead product is TPOXX, an orally administered antiviral drug that targets orthopoxviruses infections. TPOXX is a small-molecule drug delivered to the Strategic Stockpile under the Project BioShield Act of 2004 (Project BioShield). TPOXX is an investigational product that is not approved by the United States Food and Drug Administration (FDA) as a treatment of smallpox or any other indication. The Company relies on and uses third parties known as contract manufacturing organizations (CMOs) to procure commercial raw materials and supplies, and to manufacture TPOXX. The Company identified a lead pre-clinical drug candidate with activity against four serotypes of the virus and which has shown efficacy in a murine model of disease.
Jazz Pharmaceuticals PLC Company Profile
Jazz Pharmaceuticals, Inc. is a specialty pharmaceutical company focusing on the development and commercialization of pharmaceutical products to meet unmet medical needs in neurology and psychiatry. As of December 31, 2009, the Company markets two products: Xyrem (sodium oxybate) for the treatment of both cataplexy and excessive daytime sleepiness in patients with narcolepsy; and Luvox CR (fluvoxamine maleate) for the treatment of both obsessive compulsive disorder and social anxiety disorder. Its marketed products and late-stage product candidate are Xyrem (sodium oxybate) oral solution, Luvox CR (fluvoxamine maleate) Extended-Release Capsules and JZP-6 (sodium oxybate). Its other product candidates in clinical development are oral tablet forms of sodium oxybate; JZP-8 (intranasal clonazepam); JZP-4 (elpetrigine), and JZP-7 (ropinirole gel).
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