Financial Review: Fortress Biotech (NASDAQ:FBIO) and Johnson & Johnson (NYSE:JNJ)

Fortress Biotech (NASDAQ:FBIO) and Johnson & Johnson (NYSE:JNJ) are both healthcare 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.

Insider & Institutional Ownership

96.5% of Fortress Biotech shares are held by institutional investors. Comparatively, 69.6% of Johnson & Johnson shares are held by institutional investors. 28.5% of Fortress Biotech shares are held by insiders. Comparatively, 0.2% of Johnson & Johnson shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Fortress Biotech and Johnson & Johnson”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fortress Biotech	$68.47 million	1.00	$6.82 million	$2.64	0.78
Johnson & Johnson	$97.93 billion	6.27	$26.80 billion	$8.63	29.53

Johnson & Johnson has higher revenue and earnings than Fortress Biotech. Fortress Biotech is trading at a lower price-to-earnings ratio than Johnson & Johnson, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Fortress Biotech has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500. Comparatively, Johnson & Johnson has a beta of 0.21, indicating that its share price is 79% less volatile than the S&P 500.

Profitability

This table compares Fortress Biotech and Johnson & Johnson’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fortress Biotech	163.32%	83.47%	42.98%
Johnson & Johnson	21.48%	32.42%	13.35%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Fortress Biotech and Johnson & Johnson, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fortress Biotech	1	1	2	0	2.25
Johnson & Johnson	0	6	18	1	2.80

Fortress Biotech presently has a consensus price target of $17.00, suggesting a potential upside of 729.27%. Johnson & Johnson has a consensus price target of $276.22, suggesting a potential upside of 8.38%. Given Fortress Biotech’s higher probable upside, research analysts clearly believe Fortress Biotech is more favorable than Johnson & Johnson.

Summary

Johnson & Johnson beats Fortress Biotech on 8 of the 15 factors compared between the two stocks.

About Fortress Biotech

Fortress Biotech, Inc., a biopharmaceutical company, develops dermatology, pharmaceutical, and biotechnology products in the United States. The company markets dermatology products, such as Qbrexza a medicated cloth towelette for the treatment of primary axillary hyperhidrosis; Accutane capsules for severe recalcitrant nodular acne; Amzeeq for severe acne vulgaris; Zilxi, a topical foam; Exelderm cream and solution for topical use; Targadox an oral doxycycline drug for adjunctive therapy for severe acne; Luxamend; sulconazole nitrate cream and solution for tinea cruris and tinea corporis; and doxycycline hyclate tablet. It also develops late stage product candidates, such as intravenous Tramadol for the treatment of post-operative acute pain; CUTX-101, an injection for the treatment of Menkes disease; Cosibelimab for metastatic cancers; Olafertinib for the treatment of patients with EGFR mutation-positive NSCLC; CAEL-101 for the treatment of amyloid light chain amyloidosis; Triplex vaccine for cytomegalovirus; and DFD-29 for the treatment of rosacea. The company’s early stage product candidates include Dotinurad for gout; MB-106 for B-cell non-hodgkin lymphoma; MB-101 for glioblastoma; MB-108 for recurrent GBM; MB-109 for refractory glioblastoma; AJ201, an androgen receptor degradation enhancer; BAER-101, a positive allosteric modulator; MB-117 for newly diagnosed x-linked severe combined immunodeficiency; and MB217 for previously transplanted; and MB-110 for RAG1 severe combined immunodeficiency. Its preclinical product candidates comprise Mayo Clinic In Vivo CAR T Platform Technology; AAV-ATP7A gene therapy; AVTS-001 gene therapy; CK-103 BET inhibitor; CEVA-D and CEVA-102; CK-302, an anti-GITR; CK-303, an anti-CAIX; and oligonucleotide platform. The company was formerly known as Coronado Biosciences, Inc. and changed its name to Fortress Biotech, Inc. in April 2015. Fortress Biotech, Inc. was incorporated in 2006 and is based in Bay Harbor Islands, Florida.

About Johnson & Johnson

Johnson & Johnson is a holding company, which engages in the research, development, manufacture, and sale of products in the healthcare field. It operates through the Innovative Medicine and MedTech segments. The Innovative Medicine segment focuses on immunology, infectious diseases, neuroscience, oncology, cardiovascular and metabolism, and pulmonary hypertension. The MedTech segment includes a portfolio of products used in the interventional solutions, orthopaedics, surgery, and vision categories. The company was founded by Robert Wood Johnson I, James Wood Johnson, and Edward Mead Johnson Sr. in 1887 and is headquartered in New Brunswick, NJ.