Sanofi (NYSE: SNY) and Tetraphase Pharmaceuticals (NASDAQ:TTPH) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, institutional ownership, profitability and analyst recommendations.
Volatility & Risk
Sanofi has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500. Comparatively, Tetraphase Pharmaceuticals has a beta of 2.51, indicating that its stock price is 151% more volatile than the S&P 500.
Valuation & Earnings
This table compares Sanofi and Tetraphase Pharmaceuticals’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Sanofi||$37.43 billion||2.91||$4.86 billion||$3.92||11.01|
|Tetraphase Pharmaceuticals||$5.14 million||58.92||-$77.48 million||($2.86)||-2.06|
Sanofi has higher revenue and earnings than Tetraphase Pharmaceuticals. Tetraphase Pharmaceuticals is trading at a lower price-to-earnings ratio than Sanofi, indicating that it is currently the more affordable of the two stocks.
This table compares Sanofi and Tetraphase Pharmaceuticals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
9.1% of Sanofi shares are held by institutional investors. Comparatively, 58.2% of Tetraphase Pharmaceuticals shares are held by institutional investors. 1.0% of Sanofi shares are held by company insiders. Comparatively, 5.5% of Tetraphase Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This is a summary of recent ratings and target prices for Sanofi and Tetraphase Pharmaceuticals, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Sanofi presently has a consensus price target of $53.50, indicating a potential upside of 23.93%. Tetraphase Pharmaceuticals has a consensus price target of $17.00, indicating a potential upside of 188.62%. Given Tetraphase Pharmaceuticals’ stronger consensus rating and higher possible upside, analysts clearly believe Tetraphase Pharmaceuticals is more favorable than Sanofi.
Sanofi pays an annual dividend of $1.10 per share and has a dividend yield of 2.5%. Tetraphase Pharmaceuticals does not pay a dividend. Sanofi pays out 28.1% of its earnings in the form of a dividend.
Tetraphase Pharmaceuticals beats Sanofi on 8 of the 15 factors compared between the two stocks.
Sanofi Company Profile
Sanofi is a healthcare company, focused on patient needs and engaged in the research, development, manufacture and marketing of therapeutic solutions. The Company’s segments are Pharmaceuticals, Human Vaccines (Vaccines), and Other. The Pharmaceuticals segment comprises the commercial operations of various franchises, including Speciality Care (Rare Diseases, Multiple Sclerosis, and Oncology), Diabetes and Cardiovascular, Established Prescription Products, Consumer Healthcare and Generics, and research and development, production and marketing activities for all of the Company’s pharmaceuticals operations. The Vaccines segment is dedicated to vaccines and includes the commercial operations of the Company’s vaccines division Sanofi Pasteur and dedicated research and development, production and marketing activities for the Company’s vaccines operations. Its Rare Diseases products include Cerezyme, Cerdelga, Myozyme and Lumizyme, Fabrazyme, and Aldurazyme.
Tetraphase Pharmaceuticals Company Profile
Tetraphase Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company. The Company uses its chemistry technology to create antibiotics for multidrug-resistant infections. The Company is developing its lead product candidate, eravacycline, a fully synthetic tetracycline derivative, as a spectrum intravenous (IV) and oral antibiotic for use as a first-line empiric monotherapy for the treatment of multidrug-resistant infections, including multidrug-resistant gram-negative infections. The Company also develops TP-6076 for multidrug-resistant gram-negative infections. Eravacycline is a fluorocycline antibiotic. The Company is conducting a global Phase III clinical program for eravacycline called Investigating Gram-Negative Infections Treated with Eravacycline (IGNITE). TP-271 is a fully synthetic fluorocycline being developed for respiratory disease caused by bacterial biothreat pathogens in healthy volunteers.
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