Cadence Pharmaceuticals (NASDAQ: CADX) and Valeant Pharmaceuticals International (NYSE:VRX) are both healthcare companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, valuation, analyst recommendations, earnings, risk and institutional ownership.
Insider and Institutional Ownership
50.5% of Valeant Pharmaceuticals International shares are held by institutional investors. 5.9% of Valeant Pharmaceuticals International shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This table compares Cadence Pharmaceuticals and Valeant Pharmaceuticals International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Valeant Pharmaceuticals International||-12.40%||59.89%||5.37%|
This is a breakdown of current ratings and target prices for Cadence Pharmaceuticals and Valeant Pharmaceuticals International, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Valeant Pharmaceuticals International||3||12||4||0||2.05|
Valeant Pharmaceuticals International has a consensus target price of $17.89, suggesting a potential upside of 29.39%. Given Valeant Pharmaceuticals International’s higher probable upside, analysts plainly believe Valeant Pharmaceuticals International is more favorable than Cadence Pharmaceuticals.
Valuation & Earnings
This table compares Cadence Pharmaceuticals and Valeant Pharmaceuticals International’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Valeant Pharmaceuticals International||$9.22 billion||0.52||$3.75 billion||($3.28)||-4.22|
Valeant Pharmaceuticals International has higher revenue and earnings than Cadence Pharmaceuticals.
Valeant Pharmaceuticals International beats Cadence Pharmaceuticals on 7 of the 8 factors compared between the two stocks.
Cadence Pharmaceuticals Company Profile
Cadence Pharmaceuticals, Inc. (Cadence) is a biopharmaceutical company focused on acquiring, in-licensing, developing and commercializing products principally for use in the hospital setting. The Company has rights to one product, OFIRMEV (acetaminophen) injection, an intravenous (IV), formulation of acetaminophen. The Company in-licensed the United States, and Canadian rights to OFIRMEV from Bristol-Myers Squibb Company (BMS), which sells intravenous acetaminophen in Europe and other markets for the treatment of acute pain and fever under the brand name Perfalgan. In March 2014, Mallinckrodt Plc acquired Cadence Pharmaceuticals, Inc. In March 2014, Mallinckrodt Plc completed the acquisition of Cadence Pharmaceuticals.
Valeant Pharmaceuticals International Company Profile
Valeant Pharmaceuticals International, Inc. is a pharmaceutical and medical device company. The Company is engaged in developing and marketing a range of branded, generic and branded generic pharmaceuticals, over-the-counter (OTC) products, and medical devices (contact lenses, intraocular lenses, ophthalmic surgical equipment, and aesthetics devices). It operates through two segments: Developed markets and Emerging markets. In the Developed Markets segment, it focuses on the areas of dermatology, neurology, gastrointestinal disorders, and eye health therapeutic classes. In the Emerging Markets segment, it focuses on primarily on branded generics, OTC products and medical devices. Its pharmaceutical products include Xifaxan, Solodyn and Glumetza. Its OTC products include PreserVision, Biotrue and Boston. Its other generic products include Latanoprost and Metronidazole. Its ophthalmic surgical products include intraocular lenses, such as Akreos, enVista, Crystalens and Trulign.
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