Contrasting Bayer Aktiengesellschaft (OTCMKTS:BAYRY) & Roche (OTCMKTS:RHHBY)

Roche (OTCMKTS:RHHBY) and Bayer Aktiengesellschaft (OTCMKTS:BAYRY) are both large-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, risk, profitability and dividends.

Valuation & Earnings

This table compares Roche and Bayer Aktiengesellschaft”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Roche	$68.73 billion	3.87	$9.40 billion	N/A	N/A
Bayer Aktiengesellschaft	$50.44 billion	0.63	-$2.76 billion	($0.97)	-8.30

Roche has higher revenue and earnings than Bayer Aktiengesellschaft.

Analyst Recommendations

This is a summary of current recommendations and price targets for Roche and Bayer Aktiengesellschaft, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Roche	0	3	0	2	2.80
Bayer Aktiengesellschaft	0	1	1	2	3.25

Risk and Volatility

Roche has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500. Comparatively, Bayer Aktiengesellschaft has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500.

Profitability

This table compares Roche and Bayer Aktiengesellschaft’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Roche	N/A	N/A	N/A
Bayer Aktiengesellschaft	-7.61%	15.44%	4.49%

Dividends

Roche pays an annual dividend of $0.87 per share and has a dividend yield of 2.1%. Bayer Aktiengesellschaft pays an annual dividend of $0.02 per share and has a dividend yield of 0.2%. Bayer Aktiengesellschaft pays out -2.1% of its earnings in the form of a dividend.

Summary

Bayer Aktiengesellschaft beats Roche on 6 of the 11 factors compared between the two stocks.

About Roche

Roche Holding AG engages in the pharmaceuticals and diagnostics businesses in Europe, North America, Latin America, Asia, Africa, Australia, and Oceania. The company offers pharmaceutical products in the therapeutic areas of anemia, blood and solid tumors, dermatology, hemophilia, inflammatory and autoimmune, neurological disorders, ophthalmology, respiratory disorders, and transplantation. It is also developing products for various therapeutic areas. In addition, it offers in vitro tests for the diagnosis of various diseases, such as cancer, diabetes, Covid-19, hepatitis, human papillomavirus, and other diseases; diagnostic instruments; and digital health solutions. Roche Holding AG was founded in 1896 and is based in Basel, Switzerland.

About Bayer Aktiengesellschaft

Bayer Aktiengesellschaft, together its subsidiaries, operates as a life science company worldwide. It operates through Pharmaceuticals, Consumer Health, and Crop Science segments. The Pharmaceuticals segment offers prescription products primarily for cardiology and women’s health care; specialty therapeutics in the areas of oncology, hematology, and ophthalmology; and diagnostic imaging equipment and digital solutions, and contrast agents, as well as cell and gene therapy. The Consumer Health segment markets nonprescription over-the-counter medicines for self-medication and self-care; and solutions for nutritional supplements, allergy, cough and cold, dermatology, pain and cardiovascular risk prevention, and digestive health. This segment also provides breeding, propagation, and production/processing of seeds, including seed dressing. The company has a collaboration with Acuitas Therapeutics, Inc. to strengthen gene editing programs; Peking University in the area of basic pharmaceutical research; the Swiss Tropical and Public Health Institute in the development of the compound emodepside for the treatment of infection with soil-transmitted helminths; bit.bio Ltd. for the discovery and manufacture of regulatory T cells for use in creating therapeutics; Hologic, Inc. in the field of contrastenhanced-mammography solutions to improve diagnostic imaging for the detection of breast cancer; and Twist Bioscience Corporation centering around the research and development of antibody-based pharmaceuticals, as well as with CrossBay Medical Inc. It distributes its products through wholesalers, pharmacies and pharmacy chains, supermarkets, online and other retailers, and hospitals, as well as directly to farmers. The company has collaboration with Thermo Fisher Scientific. Bayer Aktiengesellschaft was founded in 1863 and is based in Leverkusen, Germany.