Merck & Co., Inc. (NYSE:MRK – Get Rating) and Puma Biotechnology (NASDAQ:PBYI – Get Rating) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, institutional ownership, risk and earnings.
Valuation and Earnings
This table compares Merck & Co., Inc. and Puma Biotechnology’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Merck & Co., Inc.||$48.70 billion||4.83||$13.05 billion||$5.59||16.65|
|Puma Biotechnology||$253.20 million||0.37||-$29.13 million||($1.20)||-1.72|
Merck & Co., Inc. has higher revenue and earnings than Puma Biotechnology. Puma Biotechnology is trading at a lower price-to-earnings ratio than Merck & Co., Inc., indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Merck & Co., Inc. has a beta of 0.37, meaning that its stock price is 63% less volatile than the S&P 500. Comparatively, Puma Biotechnology has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500.
Institutional & Insider Ownership
72.9% of Merck & Co., Inc. shares are owned by institutional investors. Comparatively, 96.8% of Puma Biotechnology shares are owned by institutional investors. 0.3% of Merck & Co., Inc. shares are owned by insiders. Comparatively, 19.5% of Puma Biotechnology shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This table compares Merck & Co., Inc. and Puma Biotechnology’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Merck & Co., Inc.||26.27%||47.86%||17.92%|
This is a summary of current ratings and recommmendations for Merck & Co., Inc. and Puma Biotechnology, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Merck & Co., Inc.||0||7||7||1||2.60|
Merck & Co., Inc. presently has a consensus target price of $91.27, suggesting a potential downside of 1.95%. Puma Biotechnology has a consensus target price of $9.25, suggesting a potential upside of 346.86%. Given Puma Biotechnology’s higher probable upside, analysts plainly believe Puma Biotechnology is more favorable than Merck & Co., Inc..
Merck & Co., Inc. beats Puma Biotechnology on 11 of the 15 factors compared between the two stocks.
Merck & Co., Inc. Company Profile (Get Rating)
Merck & Co., Inc. operates as a healthcare company worldwide. It operates through two segments, Pharmaceutical and Animal Health. The Pharmaceutical segment offers human health pharmaceutical products in the areas of oncology, hospital acute care, immunology, neuroscience, virology, cardiovascular, and diabetes, as well as vaccine products, such as preventive pediatric, adolescent, and adult vaccines. The Animal Health segment discovers, develops, manufactures, and markets veterinary pharmaceuticals, vaccines, and health management solutions and services, as well as digitally connected identification, traceability, and monitoring products. It serves drug wholesalers and retailers, hospitals, and government agencies; managed health care providers, such as health maintenance organizations, pharmacy benefit managers, and other institutions; and physicians and physician distributors, veterinarians, and animal producers. The company has collaborations with AstraZeneca PLC; Bayer AG; Eisai Co., Ltd.; Ridgeback Biotherapeutics; and Gilead Sciences, Inc. to jointly develop and commercialize long-acting treatments in HIV. Merck & Co., Inc. was founded in 1891 and is headquartered in Kenilworth, New Jersey.
Puma Biotechnology Company Profile (Get Rating)
Puma Biotechnology, Inc., a biopharmaceutical company, focuses on the development and commercialization of products to enhance cancer care in the United States and internationally. The company’s drug candidates include PB272 neratinib (oral) for the patients with early stage HER2-overexpressed/amplified breast cancer; PB272 (neratinib, oral) for the use of neratinib in combination with capecitabine for the treatment of adult patients with advanced or metastatic HER2-positive breast cancer; PB272 (neratinib, oral) for HER2 mutation-positive solid tumors. It has a license agreement with Pfizer, Inc.; and sub-license agreement with Specialised Therapeutics Asia Pte Ltd., CANbridge BIOMED Limited, Pint Pharma International SA, Knight Therapeutics, Inc., Pierre Fabre Medicament SAS, and Bixink Therapeutics Co., Ltd. The company was founded in 2010 and is headquartered in Los Angeles, California.
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