Financial Review: Terumo (OTCMKTS:TRUMY) versus Lantheus (NASDAQ:LNTH)

Terumo (OTCMKTS:TRUMY) and Lantheus (NASDAQ:LNTH) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.

Profitability

This table compares Terumo and Lantheus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Terumo	12.09%	9.17%	6.57%
Lantheus	18.05%	29.32%	15.00%

Insider and Institutional Ownership

99.1% of Lantheus shares are owned by institutional investors. 1.7% of Lantheus shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for Terumo and Lantheus, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Terumo	0	2	0	0	2.00
Lantheus	0	3	8	0	2.73

Lantheus has a consensus price target of $110.43, suggesting a potential upside of 5.56%. Given Lantheus’ stronger consensus rating and higher possible upside, analysts plainly believe Lantheus is more favorable than Terumo.

Valuation and Earnings

This table compares Terumo and Lantheus”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Terumo	$7.52 billion	2.63	$897.03 million	$0.61	22.00
Lantheus	$1.54 billion	4.42	$233.56 million	$4.15	25.21

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

Risk & Volatility

Terumo has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500. Comparatively, Lantheus has a beta of -0.06, indicating that its share price is 106% less volatile than the S&P 500.

Summary

Lantheus beats Terumo on 11 of the 14 factors compared between the two stocks.

About Terumo

Terumo Corporation engages in the manufacture and sale of medical products and equipment in Japan, Europe, China, the United States, Asia, and internationally. The company operates through three segments: Cardiac and Vascular Company, Medical Care Solutions Company, and Blood and Cell Technologies Company. The Cardiac and Vascular Company segment offers angiographic guidewires, angiographic catheters, introducer sheaths, vascular closure devices, PTCA balloon catheters, coronary stents, self-expanding peripheral stents, intravascular ultrasound systems, imaging catheters, and others; coils, stents, and intrasaccular devices for treating cerebral aneurysm; embolization systems, aspiration catheters, and clot retrievers for treating ischemic stroke and others; oxygenators, cardio-pulmonary bypass systems, and others; and artificial vascular and stent grafts. The Medical Care Solutions Company segment provides syringes, infusion pumps, syringe pumps, infusion lines, I.V. solutions, peritoneal dialysis fluids, pain management and nutritious food products, adhesion barriers, and others; blood glucose monitoring systems, disposable needles for pen-injector, insulin patch pumps, blood pressure monitors, digital thermometers, and others; and contract manufacturing of prefilled syringes, devices to pharmaceutical companies for use in drug kits, such as prefillable syringes, needles for pharmaceutical packaging business, and others. The Blood and Cell Technologies Company segment offers blood bags, component collection systems, automated blood processing systems, pathogen reduction systems, centrifugal apheresis systems, cell expansion systems, and others. The company was formerly known as Sekisen Ken-onki Corporation and changed its name to Terumo Corporation in October 1974. Terumo Corporation was incorporated in 1921 and is headquartered in Tokyo, Japan.

About Lantheus

Lantheus Holdings, Inc. develops, manufactures, and commercializes diagnostic and therapeutic products that assist clinicians in the diagnosis and treatment of heart, cancer, and other diseases worldwide. It provides DEFINITY, an injectable ultrasound enhancing agent used in echocardiography exams; TechneLite, a technetium generator for nuclear medicine procedures; Xenon-133, a radiopharmaceutical gas to assess pulmonary function; Neurolite, an injectable imaging agent to identify the area within the brain where blood flow has been blocked or reduced due to stroke; Cardiolite, an injectable Tc-99m-labeled imaging agent to assess blood flow to the muscle of the heart; and PYLARIFY, an F 18-labelled PSMA-targeted PET imaging agent used for imaging of PSMA positive-lesions in men with prostate cancer. The company also offers Automated Bone Scan Index that calculates the disease burden of prostate cancer by detecting and classifying bone scan tracer uptakes as metastatic or benign lesions using an artificial neural network; RELISTOR for opioid-induced constipation; and aPROMISE, an artificial intelligence medical device software; and PYLARIFY AI, an AI-based medical device software to perform quantitative assessment of PSMA PET/CT images in prostate cancer. In addition, it develops 1095, a PSMA-targeted iodine-131-labeled small molecule; PNT2002, a radiopharmaceutical therapy to treat mCRPC; PNT2003, an SSTR therapy that treats patients with SSTR-positive neuroendocrine tumors; MK-6240, a F 18-labeled PET imaging agent that targets Tau tangles in Alzheimer’s disease; LNTH-1363S, an fibroblast activation protein, alpha targeted, copper-64 labeled PET imaging agent; and flurpiridaz used to assess blood flow to the heart;. It has collaboration agreements with GE Healthcare; NanoMab Technology Limited; Curium; RefleXion Medical, Inc.; POINT; Regeneron Pharmaceuticals, Inc; and Ratio Therapeutics LLC. The company was founded in 1956 and is based in Bedford, Massachusetts.