Critical Comparison: Taro Pharmaceutical Industries (NYSE:TARO) and Genmab A/S (NYSE:GNMSF)

Taro Pharmaceutical Industries (NYSE:TARO) and Genmab A/S (OTCMKTS:GNMSF) are both medical companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, dividends, risk, profitability, analyst recommendations, earnings and institutional ownership.

Analyst Recommendations

This is a summary of recent recommendations for Taro Pharmaceutical Industries and Genmab A/S, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Taro Pharmaceutical Industries 0 0 1 0 3.00
Genmab A/S 0 0 1 0 3.00

Taro Pharmaceutical Industries presently has a consensus target price of $105.00, suggesting a potential upside of 24.96%. Given Taro Pharmaceutical Industries’ higher probable upside, equities analysts clearly believe Taro Pharmaceutical Industries is more favorable than Genmab A/S.

Profitability

This table compares Taro Pharmaceutical Industries and Genmab A/S’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Taro Pharmaceutical Industries 41.49% 13.90% 12.57%
Genmab A/S 36.67% 14.32% 13.37%

Earnings & Valuation

This table compares Taro Pharmaceutical Industries and Genmab A/S’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Taro Pharmaceutical Industries $669.89 million 4.83 $281.78 million $7.23 11.62
Genmab A/S $479.45 million 25.86 $233.19 million $3.76 53.46

Taro Pharmaceutical Industries has higher revenue and earnings than Genmab A/S. Taro Pharmaceutical Industries is trading at a lower price-to-earnings ratio than Genmab A/S, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

10.2% of Taro Pharmaceutical Industries shares are owned by institutional investors. Comparatively, 0.1% of Genmab A/S shares are owned by institutional investors. 13.8% of Taro Pharmaceutical Industries shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

Taro Pharmaceutical Industries has a beta of 0.43, indicating that its stock price is 57% less volatile than the S&P 500. Comparatively, Genmab A/S has a beta of 0.15, indicating that its stock price is 85% less volatile than the S&P 500.

Summary

Taro Pharmaceutical Industries beats Genmab A/S on 8 of the 12 factors compared between the two stocks.

About Taro Pharmaceutical Industries

Taro Pharmaceutical Industries Ltd., a science-based pharmaceutical company, engages in the development, manufacture, and marketing of pharmaceutical products in the United States, Canada, Israel, and internationally. It offers prescription and over-the-counter pharmaceutical products focusing on primary areas, including topical creams and ointments, liquids, capsules, and tablets in the dermatological and topical, cardiovascular, neuropsychiatric, and anti-inflammatory therapeutic categories. The company sells and distributes its products principally to drug industry wholesalers, drug store chains, mass merchandisers, healthcare institutions, and private pharmacies. The company was founded in 1959 and is based in Haifa Bay, Israel. Taro Pharmaceutical Industries Ltd. is a subsidiary of Alkaloida Chemical Company Zrt.

About Genmab A/S

Genmab A/S, a biotechnology company, develops antibody therapeutics for the treatment of cancer primarily in Denmark. The company markets DARZALEX, a human IgG1k monoclonal antibody for the treatment of patients with multiple myeloma (MM); and Arzerra, a human IgG1k monoclonal antibody for the treatment of chronic lymphocytic leukemia (CLL). Its products under development include Ofatumumab to treat CLL and multiple sclerosis; Daratumumab to treat MM, natural killer/T-cell lymphoma, and amyloidosis; Tisotumab vedotin for treating cervical, ovarian, and solid cancers; HuMax-AXL-ADC, and HexaBody-DR5/DR5 for treating solid cancers; and DuoBody-CD3xCD20 for the treatment of B-cell malignancies. The company's products under development also comprise Teprotumumab for the treatment of Graves' orbitopathy; Camidanlumab tesirine (ADCT-301) to treat lymphoma, solid tumors, and acute myeloid leukemia (AML); HuMax-IL8 (BMS-986253) for treating advanced cancers; JNJ-61186372 for the treatment of non-small-cell lung cancer; JNJ-63709178 to treat AML; JNJ-64007957 and JNJ-64407564 for MM; and Lu AF82422 for treating Parkinson's disease. In addition, it has approximately 20 active pre-clinical programs, including naked, bispecific, and immune effector function enhanced antibodies. The company has commercial license and collaboration agreement with Seattle Genetics, Inc. to co-develop tisotumab vedotin, an antibody-drug conjugate; and research collaboration and license agreement with Immatics Biotechnologies GmbH to research and develop next-generation bispecific immunotherapies for treating multiple cancer indications. Genmab A/S was founded in 1999 and is based in Copenhagen, Denmark.

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