Innoviva (INVA) versus Sagent Pharmaceuticals (SGNT) Critical Analysis

Innoviva (NASDAQ: INVA) and Sagent Pharmaceuticals (NASDAQ:SGNT) are both medical companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, risk and dividends.

Risk & Volatility

Innoviva has a beta of 2.6, meaning that its share price is 160% more volatile than the S&P 500. Comparatively, Sagent Pharmaceuticals has a beta of 1.66, meaning that its share price is 66% more volatile than the S&P 500.

Insider and Institutional Ownership

69.1% of Innoviva shares are held by institutional investors. 1.6% of Innoviva shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for Innoviva and Sagent Pharmaceuticals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Innoviva 1 2 1 0 2.00
Sagent Pharmaceuticals 0 0 0 0 N/A

Innoviva currently has a consensus price target of $13.00, indicating a potential downside of 6.47%. Given Innoviva’s higher probable upside, equities analysts clearly believe Innoviva is more favorable than Sagent Pharmaceuticals.

Valuation & Earnings

This table compares Innoviva and Sagent Pharmaceuticals’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Innoviva $175.98 million 8.64 $142.91 million $0.78 17.82
Sagent Pharmaceuticals N/A N/A N/A ($0.76) -28.59

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

Profitability

This table compares Innoviva and Sagent Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Innoviva 52.56% -27.37% 24.45%
Sagent Pharmaceuticals -0.72% -0.81% -0.59%

Summary

Innoviva beats Sagent Pharmaceuticals on 9 of the 10 factors compared between the two stocks.

Innoviva Company Profile

Innoviva, Inc., formerly Theravance, Inc., is engaged in the development, commercialization and financial management of bio-pharmaceuticals. It focuses on the respiratory assets partnered with Glaxo Group Limited (GSK), including RELVAR/BREO ELLIPTA (fluticasone furoate (FF)/vilanterol (VI)) and ANORO ELLIPTA (umeclidinium bromide/vilanterol (UMEC/VI)). Under the Long-Acting Beta2 Agonist (LABA) Collaboration Agreement and the Strategic Alliance Agreement with GSK, the Company is eligible to receive the annual royalties from GSK on sales of RELVAR/BREO ELLIPTA. For other products combined with a LABA from the LABA collaboration, such as ANORO ELLIPTA, royalties are upward tiering and range from 6.5% to 10%. RELVAR/BREO is a once-a-day combination inhaled respiratory medicine consisting of a LABA (VI) and an inhaled corticosteroid (ICS), FF. ANORO ELLIPTA a once-daily medicine combining a long-acting muscarinic antagonist (LAMA), umeclidinium bromide (UMEC), with a LABA.

Sagent Pharmaceuticals Company Profile

Sagent Pharmaceuticals, Inc. is a specialty and generic pharmaceutical company. The Company is a provider of pharmaceuticals to the hospital market, which it sells primarily throughout North America. It is focused on developing, manufacturing, sourcing and marketing injectable pharmaceutical products to the hospital market. It operates through two segments: Sagent US, consisting of the Company’s operations in the United States and the Sagent (China) Pharmaceuticals Co. Ltd. (SCP) manufacturing facility, and Omega, which is focused on the Canadian and international markets. It offers a range of products across anti-infective, oncology and critical care indications in a range of presentations, including single and multi-dose vials, pre-filled ready-to-use syringes and premix bags. Its Sagent US product portfolio includes approximately 60 marketed products that it offers in over 180 presentations, and its Omega segment offers over 50 products.

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