Bausch Health Cos (NYSE:BHC – Get Free Report) and Journey Medical (NASDAQ:DERM – Get Free Report) are both healthcare companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.
Institutional and Insider Ownership
78.7% of Bausch Health Cos shares are held by institutional investors. Comparatively, 7.2% of Journey Medical shares are held by institutional investors. 20.7% of Bausch Health Cos shares are held by insiders. Comparatively, 14.5% of Journey Medical shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Bausch Health Cos and Journey Medical”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bausch Health Cos | $10.85 billion | 0.20 | $157.00 million | ($2.96) | -1.99 |
| Journey Medical | $68.18 million | 2.19 | -$11.43 million | ($0.22) | -24.00 |
Bausch Health Cos has higher revenue and earnings than Journey Medical. Journey Medical is trading at a lower price-to-earnings ratio than Bausch Health Cos, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent recommendations for Bausch Health Cos and Journey Medical, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bausch Health Cos | 1 | 5 | 0 | 1 | 2.14 |
| Journey Medical | 1 | 0 | 2 | 0 | 2.33 |
Bausch Health Cos currently has a consensus target price of $8.00, suggesting a potential upside of 35.71%. Journey Medical has a consensus target price of $14.00, suggesting a potential upside of 165.15%. Given Journey Medical’s stronger consensus rating and higher probable upside, analysts clearly believe Journey Medical is more favorable than Bausch Health Cos.
Profitability
This table compares Bausch Health Cos and Journey Medical’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Bausch Health Cos | -10.12% | -561.95% | 6.31% |
| Journey Medical | -8.95% | -20.23% | -6.60% |
Volatility & Risk
Bausch Health Cos has a beta of 0.37, indicating that its stock price is 63% less volatile than the S&P 500. Comparatively, Journey Medical has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500.
Summary
Journey Medical beats Bausch Health Cos on 8 of the 15 factors compared between the two stocks.
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.
About Journey Medical
Journey Medical Corporation focuses on the development and commercialization of pharmaceutical products for the treatment of dermatological conditions in the United States. The company's marketed products include Qbrexza, a medicated cloth towelette for the treatment of primary axillary hyperhidrosis; Accutane, an oral isotretinoin drug to treat severe recalcitrant nodular acne; and Amzeeq, a topical formulation of minocycline for the treatment of inflammatory lesions of non-nodular moderate to severe acne vulgaris. It also offers Zilxi, a topical minocycline treatment for inflammatory lesions of rosacea; Exelderm cream and solution an antifungal intended for topical use; Targadox, an oral doxycycline drug for adjunctive therapy for severe acne; and Luxamend, a water-based emulsion formulated to provide a moist healing environment for superficial wounds; minor cuts or scrapes; dermal ulcers; donor sites; first- and second-degree burns, including sunburns; and radiation dermatitis. In addition, the company sells sulconazole nitrate cream and solution indicated for the treatment of tinea cruris, tinea corporis, and tinea versicolor; and doxycycline hyclate tablets, as an adjunctive therapy for severe acne. The company was formerly known as Coronado Dermatology, Inc. and changed its name to Journey Medical Corporation. Journey Medical Corporation was incorporated in 2014 and is headquartered in Scottsdale, Arizona. Journey Medical Corporation is a subsidiary of Fortress Biotech, Inc.
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