Harrow (NASDAQ:HROW – Get Free Report) and Teva Pharmaceutical Industries (NYSE:TEVA – Get Free Report) are both healthcare companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, valuation, earnings, risk and dividends.
Institutional and Insider Ownership
72.8% of Harrow shares are owned by institutional investors. Comparatively, 54.0% of Teva Pharmaceutical Industries shares are owned by institutional investors. 12.8% of Harrow shares are owned by insiders. Comparatively, 0.5% of Teva Pharmaceutical Industries shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Risk and Volatility
Harrow has a beta of 0.19, suggesting that its stock price is 81% less volatile than the S&P 500. Comparatively, Teva Pharmaceutical Industries has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and price targets for Harrow and Teva Pharmaceutical Industries, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Harrow | 1 | 2 | 7 | 0 | 2.60 |
| Teva Pharmaceutical Industries | 0 | 1 | 12 | 0 | 2.92 |
Harrow currently has a consensus price target of $66.17, indicating a potential upside of 143.17%. Teva Pharmaceutical Industries has a consensus price target of $45.92, indicating a potential upside of 11.78%. Given Harrow’s higher possible upside, analysts clearly believe Harrow is more favorable than Teva Pharmaceutical Industries.
Earnings and Valuation
This table compares Harrow and Teva Pharmaceutical Industries”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Harrow | $272.30 million | 3.75 | -$5.14 million | ($1.00) | -27.21 |
| Teva Pharmaceutical Industries | $17.26 billion | 2.77 | $1.41 billion | $0.60 | 68.47 |
Teva Pharmaceutical Industries has higher revenue and earnings than Harrow. Harrow 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.
Profitability
This table compares Harrow and Teva Pharmaceutical Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Harrow | -13.51% | -38.00% | -3.37% |
| Teva Pharmaceutical Industries | 4.08% | 32.64% | 6.34% |
Summary
Teva Pharmaceutical Industries beats Harrow on 10 of the 14 factors compared between the two stocks.
About Harrow
Harrow, Inc. operates as an ophthalmic-focused healthcare company. The company owns ImprimisRx, an ophthalmology outsourcing and pharmaceutical compounding business. The company was formerly known as Imprimis Pharmaceuticals, Inc. and changed its name to Harrow Health, Inc. in December 2018. Harrow Health, Inc. was incorporated in 2006 and is headquartered in Nashville, Tennessee.
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.
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