Financial Comparison: Teva Pharmaceutical Industries (NYSE:TEVA) & Avenue Therapeutics (NASDAQ:ATXI)

Teva Pharmaceutical Industries (NYSE:TEVA) and Avenue Therapeutics (NASDAQ:ATXI) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, analyst recommendations, risk, dividends and valuation.

Insider & Institutional Ownership

54.0% of Teva Pharmaceutical Industries shares are owned by institutional investors. Comparatively, 17.3% of Avenue Therapeutics shares are owned by institutional investors. 0.6% of Teva Pharmaceutical Industries shares are owned by company insiders. Comparatively, 1.8% of Avenue Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Teva Pharmaceutical Industries	-9.91%	42.46%	6.65%
Avenue Therapeutics	N/A	-471.57%	-296.50%

Valuation & Earnings

This table compares Teva Pharmaceutical Industries and Avenue Therapeutics”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Teva Pharmaceutical Industries	$16.54 billion	1.13	-$1.64 billion	($1.45)	-11.39
Avenue Therapeutics	N/A	N/A	-$10.38 million	$18.35	0.07

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

Analyst Ratings

This is a summary of current ratings and target prices for Teva Pharmaceutical Industries and Avenue Therapeutics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Teva Pharmaceutical Industries	0	1	6	0	2.86
Avenue Therapeutics	0	0	0	0	0.00

Teva Pharmaceutical Industries presently has a consensus target price of $23.57, suggesting a potential upside of 42.73%. Given Teva Pharmaceutical Industries’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Teva Pharmaceutical Industries is more favorable than Avenue Therapeutics.

Volatility & Risk

Teva Pharmaceutical Industries has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500. Comparatively, Avenue Therapeutics has a beta of -0.28, meaning that its stock price is 128% less volatile than the S&P 500.

Summary

Teva Pharmaceutical Industries beats Avenue Therapeutics on 8 of the 13 factors compared between the two stocks.

About Teva Pharmaceutical Industries

Teva Pharmaceutical Industries Limited develops, manufactures, markets, and distributes generic medicines, specialty medicines, and biopharmaceutical products in North America, Europe, Israel, and internationally. It offers generic medicines in various dosage forms, such as tablets, capsules, injectables, inhalants, liquids, transdermal patches, ointments, and creams; sterile products, hormones, high-potency drugs, and cytotoxic substances in parenteral and solid dosage forms; and generic products with medical devices and combination products. The company focuses on the central nervous system (CNS), respiratory, and oncology areas. It provides active pharmaceutical ingredients, as well as contract manufacturing services; and operates an out-licensing platform that offers a portfolio of products to other pharmaceutical companies. The company also offers BENDEKA and TREANDA injections for the treatment of chronic lymphocytic leukemia and indolent b-cell non-hodgkin’s lymphoma; GRANIX; TRISENOX; LONQUEX; and TEVAGRASTIM/RATIOGRASTIM. In addition, it provides COPAXONE for the treatment of relapsing forms of multiple sclerosis; AJOVY for the preventive treatment of migraine in adults; AUSTEDO for the treatment of neurodegenerative and movement disorders associated with Huntington’s disease and tardive dyskinesia; UZEDY for the treatment of schizophrenia; ProAir RespiClick inhalation powder; QVAR for treatment for asthma; BRALTUS, a long-acting muscarinic antagonist; CINQAIR/CINQAERO injection; DuoResp Spiromax, an inhaled corticosteroid and long-acting beta-agonist bronchodilator; and AirDuo RespiClick fluticasone propionate and salmeterol inhalation powder. The company offers its OTC products under SUDOCREM, NasenDuo, DICLOX FORTE, OLFEN Max, and FLEGAMINA brand names. It has collaboration agreements with MedinCell; Sanofi; Alvotech; and Biolojic Design Ltd., as well as license agreement with MODAG GmbH. The company was founded in 1901 and is based in Tel Aviv, Israel.

About Avenue Therapeutics

Avenue Therapeutics, Inc., a specialty pharmaceutical company, focuses on the development and commercialization of therapies for the treatment of neurologic diseases. Its product candidates include AJ201, which is in a Phase 1b/2a clinical trial for the treatment of spinal and bulbar muscular atrophy; intravenous tramadol for the treatment of post-operative acute pain; and BAER-101 for the treatment of epilepsy and panic disorders. The company was incorporated in 2015 and is based in Bay Harbor Islands, Florida.