Reviewing Bausch Health Cos (NYSE:BHC) & Bristol Myers Squibb (NYSE:BMY)

Bristol Myers Squibb (NYSE:BMY) and Bausch Health Cos (NYSE:BHC) are both healthcare companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, risk and profitability.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Bristol Myers Squibb and Bausch Health Cos, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bristol Myers Squibb	1	10	12	2	2.60
Bausch Health Cos	1	5	0	1	2.14

Bristol Myers Squibb currently has a consensus price target of $67.06, indicating a potential upside of 9.65%. Bausch Health Cos has a consensus price target of $8.00, indicating a potential upside of 37.81%. Given Bausch Health Cos’ higher probable upside, analysts clearly believe Bausch Health Cos is more favorable than Bristol Myers Squibb.

Earnings and Valuation

This table compares Bristol Myers Squibb and Bausch Health Cos”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bristol Myers Squibb	$48.19 billion	2.59	$7.05 billion	$4.54	13.47
Bausch Health Cos	$10.27 billion	0.21	$157.00 million	($2.96)	-1.96

Bristol Myers Squibb has higher revenue and earnings than Bausch Health Cos. Bausch Health Cos is trading at a lower price-to-earnings ratio than Bristol Myers Squibb, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Bristol Myers Squibb and Bausch Health Cos’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bristol Myers Squibb	18.87%	66.90%	14.74%
Bausch Health Cos	-10.12%	-561.95%	6.31%

Institutional and Insider Ownership

76.4% of Bristol Myers Squibb shares are held by institutional investors. Comparatively, 78.7% of Bausch Health Cos shares are held by institutional investors. 0.1% of Bristol Myers Squibb shares are held by insiders. Comparatively, 20.7% of Bausch Health Cos shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Bristol Myers Squibb has a beta of 0.19, suggesting that its share price is 81% less volatile than the S&P 500. Comparatively, Bausch Health Cos has a beta of 0.37, suggesting that its share price is 63% less volatile than the S&P 500.

Summary

Bristol Myers Squibb beats Bausch Health Cos on 11 of the 15 factors compared between the two stocks.

About Bristol Myers Squibb

Bristol-Myers Squibb Company discovers, develops, licenses, manufactures, markets, distributes, and sells biopharmaceutical products worldwide. It offers products for hematology, oncology, cardiovascular, immunology, fibrotic, and neuroscience diseases. The company's products include Eliquis for reduction in risk of stroke/systemic embolism in non-valvular atrial fibrillation, and for the treatment of DVT/PE; Opdivo for various anti-cancer indications, including bladder, blood, CRC, head and neck, RCC, HCC, lung, melanoma, MPM, stomach and esophageal cancer; Pomalyst/Imnovid for multiple myeloma; Orencia for active rheumatoid arthritis and psoriatic arthritis; and Sprycel for the treatment of Philadelphia chromosome-positive chronic myeloid leukemia. It also provides Yervoy for the treatment of patients with unresectable or metastatic melanoma; Empliciti for the treatment of multiple myeloma; Abecma for the treatment of relapsed or refractory multiple myeloma; Reblozyl for the treatment of anemia; Opdualag for the treatment of unresectable or metastatic melanoma; and Zeposia to treat relapsing forms of multiple sclerosis. In addition, the company offers Breyanzi for the treatment of relapsed or refractory large B-cell lymphoma; Onureg for the treatment of AML; Inrebic for the treatment of myelofibrosis; Camzyos for the treatment of symptomatic obstructive HCM to enhance functional capacity and symptom; Sotyktu for the treatment of moderate-to-severe plaque psoriasis; Augtyro for the treatment of locally advanced or metastatic ROS1-positive NSCLC; Revlimid, an oral immunomodulatory drug for the treatment of multiple myeloma; and Abraxane to treat breast cancer, NSCLC and pancreatic cancer. It sells products to wholesalers, distributors, pharmacies, retailers, hospitals, clinics, and government agencies. The company was formerly known as Bristol-Myers Company. Bristol-Myers Squibb Company was founded in 1887 and is headquartered in Princeton, New Jersey.

About Bausch Health Cos

Bausch Health Companies Inc. operates as a diversified specialty pharmaceutical and medical device company in the United States and internationally. It develops, manufactures, and markets a range of products primarily in gastroenterology, hepatology, neurology, dermatology, international pharmaceuticals, over-the-counter (OTC) products, aesthetic medical devices, and eye health. The company operates through five segments: Salix, International, Solta Medical, Diversified, and Bausch + Lomb. The Salix segment provides gastroenterology products in the United States. The International segment sells aesthetic medical devices, branded pharmaceuticals, generic pharmaceuticals, and OTC products internationally. The Solta Medical segment engages in the sale of aesthetic medical devices. The Diversified segment offers pharmaceutical products in the areas of neurology and certain other therapeutic classes; generic products; ortho dermatologic; and dentistry products in the United States. The Bausch + Lomb segment offers products in the areas of vision care, surgical, and ophthalmic pharmaceuticals products. The company was formerly known as Valeant Pharmaceuticals International, Inc. and changed its name to Bausch Health Companies Inc. in July 2018. Bausch Health Companies Inc. is headquartered in Laval, Canada.