Contrasting WuXi AppTec (OTCMKTS:WUXIF) and IQVIA (NYSE:IQV)

IQVIA (NYSE:IQV) and WuXi AppTec (OTCMKTS:WUXIF) are both healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, risk, analyst recommendations, dividends, institutional ownership and profitability.

Valuation & Earnings

This table compares IQVIA and WuXi AppTec”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IQVIA	$16.31 billion	2.46	$1.36 billion	$8.06	30.28
WuXi AppTec	N/A	N/A	N/A	N/A	N/A

IQVIA has higher revenue and earnings than WuXi AppTec.

Profitability

This table compares IQVIA and WuXi AppTec’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
IQVIA	8.10%	30.25%	6.54%
WuXi AppTec	N/A	N/A	N/A

Insider and Institutional Ownership

89.6% of IQVIA shares are held by institutional investors. 1.7% of IQVIA shares are held by insiders. 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.

Analyst Ratings

This is a breakdown of recent ratings for IQVIA and WuXi AppTec, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IQVIA	0	3	13	1	2.88
WuXi AppTec	0	0	0	0	0.00

IQVIA currently has a consensus target price of $241.88, indicating a potential downside of 0.90%. Given IQVIA’s stronger consensus rating and higher probable upside, analysts plainly believe IQVIA is more favorable than WuXi AppTec.

Summary

IQVIA beats WuXi AppTec on 10 of the 10 factors compared between the two stocks.

About IQVIA

IQVIA Holdings Inc. engages in the provision of advanced analytics, technology solutions, and clinical research services to the life sciences industry in the Americas, Europe, Africa, and the Asia-Pacific. It operates through three segments: Technology & Analytics Solutions, Research & Development Solutions, and Contract Sales & Medical Solutions. The Technology & Analytics Solutions segment offers a range of cloud-based applications and related implementation services; real world solutions that enable life sciences and provider customers to generate and disseminate evidence, which informs health care decision making and improves patients’ outcomes; and strategic and implementation consulting services, such as advanced analytics and commercial processes outsourcing services. This segment also provides country level performance metrics related to sales of pharmaceutical products, prescribing trends, medical treatment, and promotional activity across various channels, including retail, hospital, and mail order; and measurement of sales or prescribing activity at the regional, zip code, and individual prescriber level. The Research & Development Solutions segment offers project management and clinical monitoring; clinical trial support; strategic planning and design services; and patient and site centric solutions, as well as central laboratory, genomic, bioanalytical, ADME, discovery, and vaccine and biomarker laboratory services. The Contract Sales & Medical Solutions segment provides health care provider and patient engagement services, and scientific strategy and medical affairs services. It serves pharmaceutical, biotechnology, device and diagnostic, and consumer health companies. The company has a collaboration with argenx SE. The company was formerly known as Quintiles IMS Holdings, Inc. and changed its name to IQVIA Holdings Inc. in November 2017. The company is headquartered in Durham, North Carolina.

About WuXi AppTec

WuXi AppTec Co., Ltd., an investment holding company, provides research, development, and manufacturing services to discover, develop, and manufacture small molecule drugs, and cell and gene therapies in the People's Republic of China, the United States, Europe, and internationally. The company operates through six segments: WuXi Chemistry, WuXi Testing, WuXi Biology, WuXi ATU, WuXi DDSU, and Others. It offers contract research, development, and manufacturing organization services for new drug development from discovery to commercial covering various categories for various synthetic molecular modalities, including small molecules, oligonucleotides, peptides, and complex conjugates; and biology services and solutions that support stand-alone and integrated projects from target discovery to candidate selection and into the clinic. The company also provides seamless drug and medical device testing services from preclinical testing to clinical trials; an integrated end-to-end solution to accelerate time to market for cell and gene therapies; drug discovery services to pharmaceutical and biotech customers; and clinical testing services. WuXi AppTec Co., Ltd. was founded in 2000 and is headquartered in Shanghai, the People's Republic of China.