Lonza Group (OTCMKTS: LZAGY) and Turning Point Brands (NYSE:TPB) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, analyst recommendations, risk, dividends and valuation.
Institutional & Insider Ownership
0.2% of Lonza Group shares are owned by institutional investors. Comparatively, 19.8% of Turning Point Brands shares are owned by institutional investors. 14.2% of Turning Point Brands shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This table compares Lonza Group and Turning Point Brands’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Turning Point Brands||7.07%||55.65%||8.75%|
This is a summary of current ratings and target prices for Lonza Group and Turning Point Brands, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Turning Point Brands||0||0||3||0||3.00|
Turning Point Brands has a consensus target price of $19.00, suggesting a potential downside of 5.43%. Given Turning Point Brands’ higher possible upside, analysts plainly believe Turning Point Brands is more favorable than Lonza Group.
Earnings & Valuation
This table compares Lonza Group and Turning Point Brands’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Lonza Group||$4.20 billion||4.19||$305.60 million||$0.85||27.80|
|Turning Point Brands||$285.78 million||1.35||$20.20 million||$1.08||18.60|
Lonza Group has higher revenue and earnings than Turning Point Brands. Turning Point Brands is trading at a lower price-to-earnings ratio than Lonza Group, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Lonza Group has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500. Comparatively, Turning Point Brands has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500.
Turning Point Brands pays an annual dividend of $0.16 per share and has a dividend yield of 0.8%. Lonza Group does not pay a dividend. Turning Point Brands pays out 14.8% of its earnings in the form of a dividend.
Turning Point Brands beats Lonza Group on 9 of the 15 factors compared between the two stocks.
About Lonza Group
Lonza Group Ltd supplies products and services to the pharmaceutical, biotech, and specialty ingredients markets worldwide. The company operates through two segments, Pharma&Biotech and Specialty Ingredients. The Pharma&Biotech segment develops and manufactures active pharmaceutical ingredients for life-saving medicines; manufactures commercial bulk drug substance of monoclonal antibodies and recombinant proteins from mammalian cell cultures; and chemical contract manufacturing services, such as microbials, peptides, and small molecules. It also offers process development and manufacturing services for cell therapy, viral therapy, and antibody drug conjugates; cell culture, transfection, and molecular biology tools for life-science research; media to produce therapeutics; endotoxin detection assays; and products and services targeting cardiovascular, respiratory, neurological, metabolic, cancer, and other disease research areas. This segment serves customers in academic and government institutions, and in biotech and pharmaceutical organizations. The Specialty Ingredients segment offers consumer care products comprising actives for antidandruff shampoos; cosmetic ingredients; vitamin B3 compounds; and L-Carnitine and microbial control solutions, including disinfectants and sanitizers that protect from dangerous and unwanted microbes. This segment also provides active ingredients for mollusk control; custom agricultural manufacturing services to enhance crop yields and food quality; preservatives and additives for crop protection formulations, as well as animal feed additives; chemical technologies; sanitizers and other treatment chemicals for pools, spas, and water parks, as well as for the treatment of surface waters and water for drinking, agriculture, irrigation, food processing, and industrial applications; and offers feeder systems and controllers. Lonza Group Ltd was founded in 1897 and is headquartered in Basel, Switzerland.
About Turning Point Brands
Turning Point Brands, Inc. is an independent provider of Other Tobacco Products (OTP) in the United States. The Company operates in three segments smokeless products, smoking products and NewGen products. The smokeless products segment manufactures and markets moist snuff; and contracts for and markets chewing tobacco products. The smoking products segment imports and markets cigarette papers, tubes and related products; processes, packages and markets make-your-own (MYO) cigarette tobaccos; imports and markets finished cigars and MYO cigar tobaccos and cigar wraps, and processes, packages and markets pipe tobaccos. The NewGen products segment markets e-cigarettes, e-liquids, vaporizers and other related products, and distributes a wide assortment of vaping products to non-traditional retail outlets via VaporBeast. The Company’s portfolio of brands includes Zig-Zag, Beech-Nut, Stoker’s, Trophy, and VaporBeast.
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