Analyzing Valeant Pharmaceuticals (VRX) and Iterum Therapeutics (ITRM)

Valeant Pharmaceuticals (NYSE:VRX) and Iterum Therapeutics (NASDAQ:ITRM) are both medical companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, institutional ownership, profitability, dividends and earnings.

Profitability

This table compares Valeant Pharmaceuticals and Iterum Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Valeant Pharmaceuticals -10.65% 27.87% 3.58%
Iterum Therapeutics N/A N/A N/A

Valuation and Earnings

This table compares Valeant Pharmaceuticals and Iterum Therapeutics’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Valeant Pharmaceuticals $8.72 billion 0.94 $2.40 billion $3.83 6.11
Iterum Therapeutics $500,000.00 178.69 -$29.40 million N/A N/A

Valeant Pharmaceuticals has higher revenue and earnings than Iterum Therapeutics.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Valeant Pharmaceuticals and Iterum Therapeutics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Valeant Pharmaceuticals 4 6 5 0 2.07
Iterum Therapeutics 0 0 4 0 3.00

Valeant Pharmaceuticals presently has a consensus price target of $20.92, suggesting a potential downside of 10.59%. Iterum Therapeutics has a consensus price target of $20.75, suggesting a potential upside of 224.22%. Given Iterum Therapeutics’ stronger consensus rating and higher possible upside, analysts plainly believe Iterum Therapeutics is more favorable than Valeant Pharmaceuticals.

Institutional and Insider Ownership

47.0% of Valeant Pharmaceuticals shares are held by institutional investors. Comparatively, 47.6% of Iterum Therapeutics shares are held by institutional investors. 5.9% of Valeant Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Valeant Pharmaceuticals beats Iterum Therapeutics on 6 of the 11 factors compared between the two stocks.

Valeant Pharmaceuticals Company Profile

Valeant Pharmaceuticals International, Inc. operates as a multinational, specialty pharmaceutical, and medical device company that develops, manufactures, and markets a range of pharmaceuticals, over-the-counter (OTC) products, and medical devices. The company operates through three segments: Bausch + Lomb/International, Branded Rx, and U.S. Diversified Products. The Bausch + Lomb/International segment provides pharmaceutical products, OTC products, and medical device products, primarily consist of Bausch + Lomb products, with a focus on the vision care, surgical, consumer, and ophthalmology Rx products in the United States; and pharmaceutical products, generic pharmaceutical products, OTC products, medical device products, and Bausch + Lomb products in Canada, Europe, Asia, Australia and New Zealand, Latin America, Africa, and the Middle East. The Branded Rx segment sells gastrointestinal and dermatological products in the United States. The U.S. Diversified Products segment offers pharmaceutical products, OTC products, and medical device products in the areas of neurology and certain other therapeutic classes, including aesthetics. The company was founded in 1983 and is headquartered in Laval, Canada.

Iterum Therapeutics Company Profile

Iterum Therapeutics plc, a clinical-stage pharmaceutical company, engages in developing anti-infectives for multi-drug resistant pathogens in Ireland and the United States. The company is developing sulopenem, a penem anti-infective compound with oral and IV formulations that is in Phase III clinical trials for the treatment of adults in uncomplicated urinary tract infections, complicated urinary tract infections, and complicated intra-abdominal infections. Iterum Therapeutics plc was founded in 2015 and is headquartered in Dublin, Ireland.

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