Head to Head Analysis: Veru (VERU) and AstraZeneca (NYSE:AZN)

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

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Veru $13.66 million 5.17 -$6.61 million ($0.27) -4.89
AstraZeneca $22.47 billion 3.84 $3.00 billion $2.37 14.38

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.

Analyst Ratings

This is a breakdown of current ratings and price targets for Veru and AstraZeneca, as reported by MarketBeat.com.

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 278.79%. AstraZeneca has a consensus target price of $38.40, indicating a potential upside of 12.64%. Given Veru’s stronger consensus rating and higher probable upside, analysts clearly believe Veru is more favorable than AstraZeneca.

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 57.8% of its earnings in the form of a dividend.

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 -73.11% -17.63% -12.73%
AstraZeneca 13.36% 34.74% 8.52%

Institutional and Insider Ownership

4.2% of Veru shares are owned by institutional investors. Comparatively, 14.9% 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, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Veru has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500. Comparatively, AstraZeneca has a beta of 0.7, suggesting that its share price is 30% 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.

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