Analyzing Veru (VERU) and AstraZeneca (AZN)

Veru (NASDAQ: VERU) and AstraZeneca (NYSE:AZN) are both healthcare companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, earnings, profitability, risk, analyst recommendations and dividends.

Profitability

This table compares Veru and AstraZeneca’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Veru -48.42% -17.63% -11.48%
AstraZeneca 13.36% 34.74% 8.52%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Veru and AstraZeneca, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Veru 0 0 2 0 3.00
AstraZeneca 1 6 12 0 2.58

Veru presently has a consensus target price of $5.00, indicating a potential upside of 281.68%. AstraZeneca has a consensus target price of $38.00, indicating a potential upside of 11.57%. Given Veru’s stronger consensus rating and higher possible upside, research analysts clearly believe Veru is more favorable than AstraZeneca.

Earnings and Valuation

This table compares Veru and AstraZeneca’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Veru $13.66 million 5.13 -$6.61 million ($0.23) -5.70
AstraZeneca $22.47 billion 3.84 $3.00 billion $1.18 28.86

AstraZeneca has higher revenue and earnings than Veru. Veru is trading at a lower price-to-earnings ratio than AstraZeneca, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

4.5% of Veru shares are owned by institutional investors. Comparatively, 14.8% of AstraZeneca shares are owned by institutional investors. 37.0% of Veru shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

AstraZeneca pays an annual dividend of $1.37 per share and has a dividend yield of 4.0%. Veru does not pay a dividend. AstraZeneca pays out 116.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Volatility and Risk

Veru has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500. Comparatively, AstraZeneca has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500.

Summary

AstraZeneca beats Veru on 10 of the 16 factors compared between the two stocks.

About Veru

Veru Inc., formerly The Female Health Company, is a therapeutics company focused on developing and commercializing pharmaceuticals and devices in men’s and women’s health and oncology. The Company is engaged in the development, manufacture and marketing of consumer healthcare products. The Company has three divisions: Pharmaceutical and Devices, Consumer Health Products and Public Sector. For men, product and product candidates are in the areas of benign prostatic hyperplasia, male infertility, amelioration of side effects of hormonal prostate cancer therapies, prostate cancer, gout and sexual dysfunction. Women’s Health has product candidates for female sexual health, and advanced breast and ovarian cancers. It manufactures, markets and sells the FC2 Female Condom. FC2 provides dual protection against unintended pregnancy and sexually transmitted infections (STIs), including human immunodeficiency virus/acquired immune deficiency syndrome (HIV/AIDS).

About AstraZeneca

AstraZeneca PLC (AstraZeneca) is a biopharmaceutical company. The Company focuses on discovery and development of products, which are then manufactured, marketed and sold. The Company focuses on three main therapy areas: Oncology, Cardiovascular & Metabolic Disease (CVMD) and Respiratory, while selectively pursuing therapies in Autoimmunity, Infection and Neuroscience. In CVMD, it is expanding its portfolio into the cardiovascular-renal area with late-stage assets, such as ZS-9 and roxadustat, as well as investing to explore the benefits of its SGLT2 and GLP-1 franchises in chronic kidney disease (CKD) and heart failure (HF). The Company has approximately 40 projects in Phase I, including 29 new molecular entities (NMEs), and 11 oncology combination projects. It has approximately 40 projects in Phase II, including 25 NMEs; four significant additional indications for projects that have reached phase II, and seven oncology combination projects.

Receive News & Ratings for Veru Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Veru and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply