Patheon (NYSE:PTHN) and XOMA (NASDAQ:XOMA) are both medical companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.
Earnings and Valuation
This table compares Patheon and XOMA’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Patheon||$1.87 billion||2.72||$31.70 million||N/A||N/A|
|XOMA||$52.69 million||1.97||$14.59 million||$0.98||12.62|
This table compares Patheon and XOMA’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent ratings and price targets for Patheon and XOMA, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
XOMA has a consensus target price of $28.42, indicating a potential upside of 129.75%. Given XOMA’s higher probable upside, analysts plainly believe XOMA is more favorable than Patheon.
Insider and Institutional Ownership
43.6% of XOMA shares are held by institutional investors. 0.1% of Patheon shares are held by company insiders. Comparatively, 7.9% of XOMA shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
XOMA beats Patheon on 7 of the 10 factors compared between the two stocks.
Patheon N.V. is a provider of outsourced pharmaceutical development and manufacturing services. The Company’s segments include Drug Product Services (DPS), Pharmaceutical Development Services (PDS) and Drug Substance Services (DSS). The DPS segment is engaged in manufacturing and packaging for approved prescription, over-the-counter (OTC) and nutritional products. The PDS segment provides a range of formulation, production and technical services from the early stages of a product’s development to regulatory approval, as well as for new formulations of approved products for lifecycle extension. The DSS segment provides small molecule active pharmaceutical ingredient (API) and outsourced manufacturing solutions for large molecule biological API from early development through commercial scale production. It provides an integrated range of API and finished drug product services to its customers, from formulation development to clinical and commercial-scale manufacturing.
XOMA Corporation engages in the discovery, development, and licensing of therapeutic antibodies in the United States, Europe, and the Asia Pacific. The company has a portfolio of monoclonal antibodies and technologies to license to pharmaceutical and biotechnology companies to further their clinical development. Its proprietary product candidates include X213, an allosteric inhibitor of prolactin action; XMetA, an insulin receptor-activating antibody designed to provide long-acting reduction of hyperglycemia in Type 2 diabetic patients; and other preclinical product candidates, such as interleukin 2, a therapy for metastatic melanoma and renal cell carcinoma, as well as anti-parathyroid receptor to address unmet medical needs. The company also licenses antibody discovery, optimization, and development technologies. It has research and development collaboration and licensing agreements with Novartis AG; Takeda Pharmaceutical Company Limited; and Pfizer Inc. XOMA Corporation was founded in 1981 and is headquartered in Emeryville, California.
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