Grifols SA, Barcelona (NASDAQ: GRFS) and Jazz Pharmaceuticals (NASDAQ:JAZZ) are both mid-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, profitability, institutional ownership, analyst recommendations, risk and valuation.
Grifols SA, Barcelona pays an annual dividend of $0.44 per share and has a dividend yield of 2.0%. Jazz Pharmaceuticals does not pay a dividend. Grifols SA, Barcelona pays out 47.3% of its earnings in the form of a dividend.
This table compares Grifols SA, Barcelona and Jazz Pharmaceuticals’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Grifols SA, Barcelona||$4.48 billion||3.33||$603.60 million||$0.93||23.52|
|Jazz Pharmaceuticals||$1.49 billion||5.39||$396.83 million||$6.07||22.02|
Grifols SA, Barcelona has higher revenue and earnings than Jazz Pharmaceuticals. Jazz Pharmaceuticals is trading at a lower price-to-earnings ratio than Grifols SA, Barcelona, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and price targets for Grifols SA, Barcelona and Jazz Pharmaceuticals, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Grifols SA, Barcelona||0||1||3||0||2.75|
Jazz Pharmaceuticals has a consensus price target of $182.95, suggesting a potential upside of 36.88%. Given Jazz Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts clearly believe Jazz Pharmaceuticals is more favorable than Grifols SA, Barcelona.
Insider & Institutional Ownership
22.5% of Grifols SA, Barcelona shares are held by institutional investors. Comparatively, 91.3% of Jazz Pharmaceuticals shares are held by institutional investors. 4.3% of Jazz Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This table compares Grifols SA, Barcelona and Jazz Pharmaceuticals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Grifols SA, Barcelona||13.16%||18.08%||6.22%|
Volatility and Risk
Grifols SA, Barcelona has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500. Comparatively, Jazz Pharmaceuticals has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500.
Jazz Pharmaceuticals beats Grifols SA, Barcelona on 11 of the 16 factors compared between the two stocks.
Grifols SA, Barcelona Company Profile
Grifols, S.A., a specialty pharmaceutical company, develops, manufactures, and distributes biological medicines on plasma derived proteins in the United States, Canada, Spain, rest of the European Union, and internationally. The company specializes in providing infusion solutions, nutrition products, and medical devices for use in hospitals and clinics. It operates through four segments: Bioscience, Diagnostic, Hospital, and Raw Materials and Others. The Bioscience segment manufactures plasma derivatives for therapeutic use, including the reception, analysis, quarantine, classification, fractionation, and purification of plasma; and sells and distributes end products. This segment offers plasma products, such as IVIG, Factor VIII, A1PI, and albumin; and intramuscular immunoglobulins, ATIII, Factor IX, and plasma thromboplastin components. The Diagnostic segment focuses on researching, developing, manufacturing, and marketing in vitro diagnostics products comprising analytical instruments, reagents, software, and related products for use in clinical and blood bank laboratories. This segment serves blood donation centers, clinical analysis laboratories, and hospital immunohematology services. The Hospital segment manufactures and installs products used by hospitals consisting of parenteral solutions, and enteral and parenteral nutritional fluids. The Raw Materials and Others segment sells intermediate biological products; and renders manufacturing services to third party companies. The company also offers engineering services. Its products and services are used by healthcare providers to diagnose and treat patients with hemophilia, immune deficiencies, infectious diseases, and other medical conditions. The company serves hospitals and clinics, group purchasing organizations, governments, and other distributors through sales representatives, marketing partners, and third-party distributors. Grifols, S.A. was founded in 1940 and is headquartered in Barcelona, Spain.
Jazz Pharmaceuticals Company Profile
Jazz Pharmaceuticals, Inc. is a specialty pharmaceutical company focusing on the development and commercialization of pharmaceutical products to meet unmet medical needs in neurology and psychiatry. As of December 31, 2009, the Company markets two products: Xyrem (sodium oxybate) for the treatment of both cataplexy and excessive daytime sleepiness in patients with narcolepsy; and Luvox CR (fluvoxamine maleate) for the treatment of both obsessive compulsive disorder and social anxiety disorder. Its marketed products and late-stage product candidate are Xyrem (sodium oxybate) oral solution, Luvox CR (fluvoxamine maleate) Extended-Release Capsules and JZP-6 (sodium oxybate). Its other product candidates in clinical development are oral tablet forms of sodium oxybate; JZP-8 (intranasal clonazepam); JZP-4 (elpetrigine), and JZP-7 (ropinirole gel).
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