Lonza Group (OTCMKTS: LZAGY) and British American Tobacco (NYSE:BTI) are both large-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, profitability, valuation and risk.
Valuation and Earnings
This table compares Lonza Group and British American Tobacco’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Lonza Group||$5.19 billion||3.58||$737.83 million||$0.85||29.31|
|British American Tobacco||$26.15 billion||4.46||$48.37 billion||$3.68||14.88|
British American Tobacco has higher revenue and earnings than Lonza Group. British American Tobacco is trading at a lower price-to-earnings ratio than Lonza Group, indicating that it is currently the more affordable of the two stocks.
This table compares Lonza Group and British American Tobacco’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|British American Tobacco||N/A||N/A||N/A|
British American Tobacco pays an annual dividend of $2.02 per share and has a dividend yield of 3.7%. Lonza Group does not pay a dividend. British American Tobacco pays out 54.9% of its earnings in the form of a dividend.
This is a breakdown of current ratings and recommmendations for Lonza Group and British American Tobacco, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|British American Tobacco||0||1||9||0||2.90|
British American Tobacco has a consensus price target of $78.50, suggesting a potential upside of 43.35%. Given British American Tobacco’s higher probable upside, analysts plainly believe British American Tobacco is more favorable than Lonza Group.
Volatility & Risk
Lonza Group has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500. Comparatively, British American Tobacco has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500.
Institutional & Insider Ownership
0.2% of Lonza Group shares are held by institutional investors. Comparatively, 8.8% of British American Tobacco shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
British American Tobacco beats Lonza Group on 9 of the 11 factors compared between the two stocks.
Lonza Group Company Profile
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.
British American Tobacco Company Profile
British American Tobacco p.l.c. provides cigarettes and other tobacco products worldwide. It manufactures vapour and tobacco heating products; oral tobacco and nicotine products, such as snus and moist snuff; cigars; and e-cigarettes. The company offers its products under the Dunhill, Kent, Lucky Strike, Pall Mall, Rothmans, Vogue, Viceroy, Kool, Peter Stuyvesant, Craven A, Benson & Hedges, John Player Gold Leaf, State Express 555, and Shuang Xi brands. The company sells its products to retail outlets. British American Tobacco p.l.c. was founded in 1902 and is headquartered in London, the United Kingdom.
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