Critical Survey: Avedro (NASDAQ:AVDR) & Teva Pharmaceutical Industries (NASDAQ:TEVA)

Share on StockTwits

Avedro (NASDAQ:AVDR) and Teva Pharmaceutical Industries (NYSE:TEVA) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, profitability and dividends.

Profitability

This table compares Avedro and Teva Pharmaceutical Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Avedro N/A N/A N/A
Teva Pharmaceutical Industries -18.66% 16.84% 4.17%

Analyst Ratings

This is a summary of recent recommendations for Avedro and Teva Pharmaceutical Industries, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Avedro 0 0 6 0 3.00
Teva Pharmaceutical Industries 4 14 5 1 2.13

Avedro presently has a consensus price target of $19.40, indicating a potential upside of 2.27%. Teva Pharmaceutical Industries has a consensus price target of $15.00, indicating a potential upside of 89.63%. Given Teva Pharmaceutical Industries’ higher probable upside, analysts clearly believe Teva Pharmaceutical Industries is more favorable than Avedro.

Earnings & Valuation

This table compares Avedro and Teva Pharmaceutical Industries’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Avedro $27.67 million 11.70 -$25.12 million ($17.97) -1.06
Teva Pharmaceutical Industries $18.85 billion 0.43 -$2.15 billion $2.80 2.83

Avedro has higher earnings, but lower revenue than Teva Pharmaceutical Industries. Avedro is trading at a lower price-to-earnings ratio than Teva Pharmaceutical Industries, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

60.4% of Avedro shares are owned by institutional investors. Comparatively, 65.1% of Teva Pharmaceutical Industries shares are owned by institutional investors. 0.5% of Teva Pharmaceutical Industries shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Teva Pharmaceutical Industries beats Avedro on 9 of the 14 factors compared between the two stocks.

About Avedro

Avedro, Inc., an ophthalmic pharmaceutical and medical device company, develops and commercializes products to treat ophthalmic disorders and conditions, primarily associated with corneal weakness. The company's Avedro Corneal Remodeling platform comprises KXL and Mosaic systems, which deliver ultraviolet A or UVA light, and a suite of single-use riboflavin drug formulations. Its Avedro Corneal Remodeling platform treats corneal ectatic disorders and corrects refractive conditions; and KXL system in combination with Photrexa drug formulations used for the treatment of progressive keratoconus and corneal ectasia following refractive surgery. Avedro sells its products through a direct sales force in the United States and through medical device distributors internationally. The company was formerly known as ThermalVision, Inc. and changed its name to Avedro, Inc. in October 2005. Avedro, Inc. was incorporated in 2002 and is headquartered in Waltham, Massachusetts.

About Teva Pharmaceutical Industries

Teva Pharmaceutical Industries Limited, a pharmaceutical company, develops, manufactures, markets, and distributes generic medicines and a portfolio of specialty medicines worldwide. It operates through two segments, Generic Medicines and Specialty Medicines. The Generic Medicines segment offers sterile products, hormones, narcotics, high-potency drugs, and cytotoxic substances in various dosage forms, including tablets, capsules, injectables, inhalants, liquids, ointments, and creams. This segment also develops, manufactures, and sells active pharmaceutical ingredients. The Specialty Medicines segment provides specialty medicines for use in central nervous system and respiratory indications. Its products in the central nervous system area comprise Copaxone for the treatment of relapsing forms of MS; and AUSTEDO for the treatment of tardive dyskinesia and chorea associated with Huntington disease. This segment's products in the respiratory market include ProAir, ProAir Respiclick, QVAR, Duoresp Spiromax, Qnasl, Braltus, Cinqair/Cinqaero, and Aerivio Spiromax for the treatment of asthma and chronic obstructive pulmonary disease, as well as Bendeka, Treanda, Granix, Trisenox, Lonquex, and Tevagrastim/Ratiograstim products in the oncology market. The company has collaboration arrangements with Otsuka Pharmaceutical Co. Ltd. and Regeneron Pharmaceuticals, Inc. Teva Pharmaceutical Industries Limited was founded in 1901 and is headquartered in Petach Tikva, Israel.

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