Financial Contrast: Cronos Group (NASDAQ:CRON) vs. Theravance Biopharma (NASDAQ:TBPH)

Theravance Biopharma (NASDAQ:TBPH) and Cronos Group (NASDAQ:CRON) are both small-cap healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, earnings, analyst recommendations, valuation and dividends.

Earnings and Valuation

This table compares Theravance Biopharma and Cronos Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Theravance Biopharma	$107.46 million	8.23	$105.89 million	$1.01	16.86
Cronos Group	$146.59 million	8.40	-$9.45 million	$0.20	16.70

Theravance Biopharma has higher earnings, but lower revenue than Cronos Group. Cronos Group is trading at a lower price-to-earnings ratio than Theravance Biopharma, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings for Theravance Biopharma and Cronos Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Theravance Biopharma	0	8	0	0	2.00
Cronos Group	0	2	3	0	2.60

Theravance Biopharma presently has a consensus price target of $19.40, indicating a potential upside of 13.92%. Cronos Group has a consensus price target of $2.30, indicating a potential downside of 31.14%. Given Theravance Biopharma’s higher possible upside, equities research analysts clearly believe Theravance Biopharma is more favorable than Cronos Group.

Risk & Volatility

Theravance Biopharma has a beta of 0.25, meaning that its stock price is 75% less volatile than the S&P 500. Comparatively, Cronos Group has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500.

Profitability

This table compares Theravance Biopharma and Cronos Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Theravance Biopharma	51.58%	-0.77%	-0.46%
Cronos Group	39.08%	4.85%	4.62%

Institutional and Insider Ownership

99.1% of Theravance Biopharma shares are held by institutional investors. Comparatively, 8.7% of Cronos Group shares are held by institutional investors. 7.6% of Theravance Biopharma shares are held by company insiders. Comparatively, 7.8% of Cronos Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Cronos Group beats Theravance Biopharma on 8 of the 14 factors compared between the two stocks.

About Theravance Biopharma

Theravance Biopharma, Inc. is a diversified biopharmaceutical company primarily focused on the discovery, development and commercialization of organ-selective medicines. Its purpose is to pioneer a new generation of small molecule drugs designed to better meet patient needs. Its research is focused in the areas of inflammation and immunology.
In pursuit of its purpose, Theravance Biopharma applies insights and innovation at each stage of its business and utilizes its internal capabilities and those of partners around the world. The Company applies organ-selective expertise to target disease biologically, to discover and develop medicines that may expand the therapeutic index with the goal of maximizing efficacy and limiting systemic side effects. These efforts leverage years of experience in developing lung-selective medicines to treat respiratory disease, including FDA-approved YUPELRI® (revefenacin) inhalation solution indicated for the maintenance treatment of patients with chronic obstructive pulmonary disease (COPD). Its pipeline of internally discovered programs is targeted to address significant patient needs.
Theravance Biopharma has an economic interest in potential future payments from Glaxo Group Limited or one of its affiliates (GSK) pursuant to its agreements with Innoviva, Inc. relating to certain programs, including TRELEGY.
For more information, please visit www.theravance.com.

About Cronos Group

Cronos Group Inc. operates as a cannabinoid company that engages in the cultivation, production and marketing of cannabis products in Canada, Israel, and Germany. It offers dried flower, pre-rolls, oils, vaporizers, edibles, and cannabis tinctures under the Spinach, Lord Jones, and PEACE NATURALS brands. Cronos Group Inc. was founded in 2012 and is based in Toronto, Canada.