Comparing Supernus Pharmaceuticals (NASDAQ:SUPN) and Chugai Pharmaceutical (OTCMKTS:CHGCY)

Chugai Pharmaceutical (OTCMKTS:CHGCY) and Supernus Pharmaceuticals (NASDAQ:SUPN) are both healthcare companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, earnings, institutional ownership, profitability and dividends.

Profitability

This table compares Chugai Pharmaceutical and Supernus Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chugai Pharmaceutical	35.63%	24.91%	20.67%
Supernus Pharmaceuticals	-13.23%	11.13%	8.10%

Insider and Institutional Ownership

0.0% of Chugai Pharmaceutical shares are held by institutional investors. 8.5% of Supernus Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Chugai Pharmaceutical and Supernus Pharmaceuticals”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chugai Pharmaceutical	$8.41 billion	8.42	$2.91 billion	$0.96	22.42
Supernus Pharmaceuticals	$718.95 million	2.28	-$38.55 million	($0.77)	-36.56

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

Volatility & Risk

Chugai Pharmaceutical has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500. Comparatively, Supernus Pharmaceuticals has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Chugai Pharmaceutical and Supernus Pharmaceuticals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chugai Pharmaceutical	0	3	1	1	2.60
Supernus Pharmaceuticals	2	1	1	0	1.75

Supernus Pharmaceuticals has a consensus target price of $62.33, suggesting a potential upside of 121.43%. Given Supernus Pharmaceuticals’ higher probable upside, analysts clearly believe Supernus Pharmaceuticals is more favorable than Chugai Pharmaceutical.

Summary

Chugai Pharmaceutical beats Supernus Pharmaceuticals on 12 of the 14 factors compared between the two stocks.

About Chugai Pharmaceutical

Chugai Pharmaceutical Co., Ltd., together with its subsidiaries, engages in the research, development, manufacture, sale, importation, and exportation of pharmaceuticals in Japan and internationally. The company’s products for oncology primarily include Avastin, FoundationOne, Polivy, Rozlytrek, Tecentriq, Perjeta, Alecensa, Herceptin, Kadcyla, Rituxan, and Gazyva; Edirol, an Osteoporosis agent; Mircera, an erythropoiesis agent; Oxarol, an agent for secondary hyperparathyroidism; and other diseases comprise Hemlibra, CellCept, Bonviva, Tamiflu, Evrysdi, Ronapreve, Vabysmo, and Enspryng. It has various development product candidates in the areas of oncology, immunology, neuroscience, hematology, ophthalmology, and other diseases. Chugai Pharmaceutical Co., Ltd. has strategic alliances and collaboration with Roche Group. The company was founded in 1925 and is headquartered in Chuo, Japan. Chugai Pharmaceutical Co., Ltd. operates as a subsidiary of Roche Holding Ltd.

About Supernus Pharmaceuticals

Supernus Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the development and commercialization of products for the treatment of central nervous system (CNS) diseases in the United States. The company's commercial products are Trokendi XR, an extended release topiramate product indicated for the treatment of epilepsy, as well as for the prophylaxis of migraine headache; and Oxtellar XR, an extended release oxcarbazepine for the monotherapy treatment of partial onset seizures in adults and children between 6 to 17 years of age. It also offers comprise Qelbree, a novel non-stimulant indicated for the treatment of attention-deficit hyperactivity disorder (ADHD) in adults and pediatric patients 6 years and older; APOKYN for the acute intermittent treatment of hypomobility or off episodes in patients with advanced Parkinson's Disease (PD); XADAGO for treating levodopa/carbidopa in patients with PD experiencing off episodes; MYOBLOC, a Type B toxin product indicated for the treatment of cervical dystonia and sialorrhea in adults; GOCOVRI for the treatment of dyskinesia in patients with PD; and Osmolex ER for the treatment of Parkinson's disease and drug-induced extrapyramidal reaction in adult patients. In addition, the company's product candidates include SPN-830, a late-stage drug/device combination product candidate for the treatment of off episodes in PD patients; SPN-817, a novel first-in-class selective acetylcholinesterase inhibitor, which is in Phase II clinical trials for the treatment of epilepsy; SPN-820, a product candidate in Phase II clinical trials for treating resistant depression; SPN-443, a preclinical product for the treatment of ADHD/CNS; and SPN-446 for narcolepsy and SPN-448 for the treatment of CNS which is in discovery stage. It markets and sells its products through pharmaceutical wholesalers, specialty pharmacies, and distributors. Supernus Pharmaceuticals, Inc. was incorporated in 2005 and is headquartered in Rockville, Maryland.