Galmed Pharmaceuticals (NASDAQ: GLMD) and China Biologic Products (NASDAQ:CBPO) are both medical companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, dividends, risk, valuation, institutional ownership and analyst recommendations.
Earnings and Valuation
This table compares Galmed Pharmaceuticals and China Biologic Products’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Galmed Pharmaceuticals||$1.09 million||88.01||-$16.95 million||($0.98)||-6.77|
|China Biologic Products||$370.41 million||7.42||$67.94 million||$2.39||34.73|
China Biologic Products has higher revenue and earnings than Galmed Pharmaceuticals. Galmed Pharmaceuticals is trading at a lower price-to-earnings ratio than China Biologic Products, indicating that it is currently the more affordable of the two stocks.
This table compares Galmed Pharmaceuticals and China Biologic Products’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|China Biologic Products||18.34%||21.30%||18.17%|
This is a breakdown of current ratings and price targets for Galmed Pharmaceuticals and China Biologic Products, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|China Biologic Products||0||1||2||0||2.67|
Galmed Pharmaceuticals presently has a consensus price target of $22.25, indicating a potential upside of 235.60%. China Biologic Products has a consensus price target of $101.00, indicating a potential upside of 21.69%. Given Galmed Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts clearly believe Galmed Pharmaceuticals is more favorable than China Biologic Products.
Institutional and Insider Ownership
21.4% of Galmed Pharmaceuticals shares are owned by institutional investors. Comparatively, 56.3% of China Biologic Products shares are owned by institutional investors. 2.7% of China Biologic Products shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Risk and Volatility
Galmed Pharmaceuticals has a beta of 2.91, suggesting that its stock price is 191% more volatile than the S&P 500. Comparatively, China Biologic Products has a beta of 1.62, suggesting that its stock price is 62% more volatile than the S&P 500.
China Biologic Products beats Galmed Pharmaceuticals on 9 of the 14 factors compared between the two stocks.
About Galmed Pharmaceuticals
Galmed Pharmaceuticals Ltd. is a clinical-stage biopharmaceutical company. The Company focuses on the development and commercialization of once-daily, oral therapy for the treatment of liver diseases and cholesterol gallstones utilizing its synthetic fatty-acid/bile-acid conjugate (FABAC), called aramchol. Its product candidate, aramchol, is a disease modifying treatment for fatty liver disorders, including Non-Alcoholic Steato-hepatitis (NASH). The Company’s Aramchol is a conjugate of cholic acid and arachidic acid, which is a member of synthetic Fatty-Acid/Bile-Acid Conjugates (FABACs). FABACs are composed of endogenic compounds. Aramchol affects liver fat metabolism and has been shown in a Phase IIa clinical study to reduce liver fat content, as well as improve metabolic parameters associated with Nonalcoholic steatohepatitis (NASH). Aramchol is in Phase IIb clinical trials.
About China Biologic Products
China Biologic Products Holdings, Inc. is a biopharmaceutical company. The Company is principally engaged in the research, development, manufacturing and sales of human plasma-based biopharmaceutical products in China. It operates through the manufacture and sales of human plasma products segment. China Biologic has a product portfolio with over 20 various dosage forms of plasma products and other biopharmaceutical products across nine categories.The Company’s products include human albumin, human immunoglobulin, immunoglobulin for intravenous injection (IVIG), human hepatitis B immunoglobulin, human rabies immunoglobulin, human tetanus immunoglobulin, placenta polypeptide, Factor VIII and human prothrombin complex concentrate (PCC).
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