Analyzing Astrazeneca (NYSE:AZN) & Teva Pharmaceutical Industries (NYSE:TEVA)

Teva Pharmaceutical Industries (NYSE:TEVA) and Astrazeneca (NYSE:AZN) are both large-cap healthcare companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Teva Pharmaceutical Industries and Astrazeneca, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Teva Pharmaceutical Industries	0	1	12	0	2.92
Astrazeneca	1	3	14	0	2.72

Teva Pharmaceutical Industries presently has a consensus target price of $45.50, suggesting a potential upside of 10.84%. Astrazeneca has a consensus target price of $206.67, suggesting a potential upside of 30.60%. Given Astrazeneca’s higher probable upside, analysts clearly believe Astrazeneca is more favorable than Teva Pharmaceutical Industries.

Profitability

This table compares Teva Pharmaceutical Industries and Astrazeneca’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Teva Pharmaceutical Industries	4.08%	32.64%	6.34%
Astrazeneca	17.02%	31.45%	13.20%

Institutional and Insider Ownership

54.0% of Teva Pharmaceutical Industries shares are held by institutional investors. Comparatively, 20.4% of Astrazeneca shares are held by institutional investors. 0.5% of Teva Pharmaceutical Industries shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Teva Pharmaceutical Industries and Astrazeneca”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Teva Pharmaceutical Industries	$17.26 billion	2.77	$1.41 billion	$0.60	68.42
Astrazeneca	$58.74 billion	4.18	$10.22 billion	$6.69	23.65

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

Risk & Volatility

Teva Pharmaceutical Industries has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500. Comparatively, Astrazeneca has a beta of 0.27, indicating that its share price is 73% less volatile than the S&P 500.

Summary

Astrazeneca beats Teva Pharmaceutical Industries on 8 of the 14 factors compared between the two stocks.

About Teva Pharmaceutical Industries

Teva Pharmaceutical Industries Limited develops, manufactures, markets, and distributes generic medicines, specialty medicines, and biopharmaceutical products in North America, Europe, Israel, and internationally. It offers generic medicines in various dosage forms, such as tablets, capsules, injectables, inhalants, liquids, transdermal patches, ointments, and creams; sterile products, hormones, high-potency drugs, and cytotoxic substances in parenteral and solid dosage forms; and generic products with medical devices and combination products. The company focuses on the central nervous system (CNS), respiratory, and oncology areas. It provides active pharmaceutical ingredients, as well as contract manufacturing services; and operates an out-licensing platform that offers a portfolio of products to other pharmaceutical companies. The company also offers BENDEKA and TREANDA injections for the treatment of chronic lymphocytic leukemia and indolent b-cell non-hodgkin’s lymphoma; GRANIX; TRISENOX; LONQUEX; and TEVAGRASTIM/RATIOGRASTIM. In addition, it provides COPAXONE for the treatment of relapsing forms of multiple sclerosis; AJOVY for the preventive treatment of migraine in adults; AUSTEDO for the treatment of neurodegenerative and movement disorders associated with Huntington’s disease and tardive dyskinesia; UZEDY for the treatment of schizophrenia; ProAir RespiClick inhalation powder; QVAR for treatment for asthma; BRALTUS, a long-acting muscarinic antagonist; CINQAIR/CINQAERO injection; DuoResp Spiromax, an inhaled corticosteroid and long-acting beta-agonist bronchodilator; and AirDuo RespiClick fluticasone propionate and salmeterol inhalation powder. The company offers its OTC products under SUDOCREM, NasenDuo, DICLOX FORTE, OLFEN Max, and FLEGAMINA brand names. It has collaboration agreements with MedinCell; Sanofi; Alvotech; and Biolojic Design Ltd., as well as license agreement with MODAG GmbH. The company was founded in 1901 and is based in Tel Aviv, Israel.

About Astrazeneca

AstraZeneca PLC, a biopharmaceutical company, focuses on the discovery, development, manufacturing, and commercialization of prescription medicines. Its marketed products include Calquence, Enhertu, Faslodex, Imfinzi, Iressa, Koselugo, Lumoxiti, Lynparza, Orpathys, Tagrisso, and Zoladex for oncology; Brilinta/Brilique, Bydureon/Byetta, BCise, Byetta, Crestor, Evrenzo, Farxiga/Forxiga, Komboglyze/Kombiglyze XR, Lokelma, Onglyza, Qtern, and Xigduo/Xigduo XR for cardiovascular, renal, and metabolism diseases; Bevespi Aerosphere, Breztri Aerosphere, Daliresp/Daxas, Duaklir Genuair, Fasenra, Pulmicort, Saphnelo, Symbicort, and Tudorza/Eklira/Bretaris for respiratory and immunology; and Andexxa/Ondexxya, Kanuma, Soliris, Strensiq, and Ultomiris for rare diseases. The company’s marketed products also comprise Synagis for respiratory syncytial virus; Fluenz Tetra/FluMist Quadrivalent for Influenza; Seroquel IR/Seroquel XR for schizophrenia bipolar disease; Nexium, and Losec/Prilosec for gastroenterology; and Vaxzevria and Evusheld for covid-19. The company serves primary care and specialty care physicians through distributors and local representative offices in the United Kingdom, rest of Europe, the Americas, Asia, Africa, and Australasia. It has a collaboration agreement with Regeneron Pharmaceuticals, Inc. to research, develop, and commercialize small molecule medicines for obesity; Neurimmune AG to develop and commercialize NI006; Ionis Pharmaceuticals, Inc. to develop eplontersen, a liver-targeted antisense therapy in Phase III development for the treatment of transthyretin amyloidosis; Proteros Biostructures GmbH to jointly discover novel small molecules for the treatment of hematological cancers; Sierra Oncology, Inc. to develop and commercialize AZD5153. The company was formerly known as Zeneca Group PLC and changed its name to AstraZeneca PLC in April 1999. AstraZeneca PLC was incorporated in 1992 and is headquartered in Cambridge, the United Kingdom.