Financial Analysis: Dare Bioscience (NASDAQ:DARE) & Johnson & Johnson (NYSE:JNJ)

Johnson & Johnson (NYSE:JNJ) and Dare Bioscience (NASDAQ:DARE) are both healthcare companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, valuation, risk, institutional ownership, dividends and analyst recommendations.

Valuation & Earnings

This table compares Johnson & Johnson and Dare Bioscience”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Johnson & Johnson	$94.19 billion	6.66	$26.80 billion	$8.63	30.17
Dare Bioscience	$1.03 million	14.93	-$13.40 million	($0.70)	-1.12

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

Volatility and Risk

Johnson & Johnson has a beta of 0.21, meaning that its stock price is 79% less volatile than the S&P 500. Comparatively, Dare Bioscience has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for Johnson & Johnson and Dare Bioscience, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Johnson & Johnson	0	6	18	1	2.80
Dare Bioscience	1	0	2	0	2.33

Johnson & Johnson presently has a consensus target price of $276.22, suggesting a potential upside of 6.09%. Dare Bioscience has a consensus target price of $6.50, suggesting a potential upside of 731.20%. Given Dare Bioscience’s higher probable upside, analysts clearly believe Dare Bioscience is more favorable than Johnson & Johnson.

Profitability

This table compares Johnson & Johnson and Dare Bioscience’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Johnson & Johnson	21.48%	32.42%	13.35%
Dare Bioscience	-803.80%	-748.30%	-38.75%

Insider and Institutional Ownership

69.6% of Johnson & Johnson shares are held by institutional investors. Comparatively, 6.7% of Dare Bioscience shares are held by institutional investors. 0.2% of Johnson & Johnson shares are held by insiders. Comparatively, 4.1% of Dare Bioscience 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.

Summary

Johnson & Johnson beats Dare Bioscience on 11 of the 15 factors compared between the two stocks.

About Johnson & Johnson

Johnson & Johnson is a holding company, which engages in the research, development, manufacture, and sale of products in the healthcare field. It operates through the Innovative Medicine and MedTech segments. The Innovative Medicine segment focuses on immunology, infectious diseases, neuroscience, oncology, cardiovascular and metabolism, and pulmonary hypertension. The MedTech segment includes a portfolio of products used in the interventional solutions, orthopaedics, surgery, and vision categories. The company was founded by Robert Wood Johnson I, James Wood Johnson, and Edward Mead Johnson Sr. in 1887 and is headquartered in New Brunswick, NJ.

About Dare Bioscience

Daré Bioscience, Inc., a biopharmaceutical company, identifies, develops, and markets products for women's health in the United States. It develops therapies in the areas of contraception, reproductive health, menopause, fertility, and sexual and vaginal health. The company offers XACIATO for the treatment of bacterial vaginosis in female patients 12 years of age and older. It is developing Ovaprene, a hormone-free, monthly intravaginal contraceptive; Sildenafil Cream, a cream formulation of sildenafil for topical administration to the female genitalia on demand for the treatment of female sexual arousal disorder; DARE-HRT1 to treat moderate to-severe vasomotor symptoms in menopausal hormone therapy; DARE-VVA1 for the treatment of moderate-to-severe dyspareunia or pain during sexual intercourse; and DARE-CIN to treat cervical intraepithelial neoplasia and other human papillomavirus related pathologies. The company is also developing DARE-PDM1 for the treatment of primary dysmenorrhea; DARE-204 and DARE-214, an injectable formulations contraception of etonogestrel designed to provide contraception over 6-month and 12-month periods; DARE-FRT1, an intravaginal ring designed to deliver bio-identical progesterone for luteal phase support as part of an in vitro fertilization treatment plan; and DARE-PTB1 for the prevention of preterm birth. In addition, it is developing DARE-LARC1, a contraceptive implant delivering levonorgestrel with a woman-centered design that controlled contraceptive option; DARE-LBT, a novel hydrogel formulation for vaginal delivery of live biotherapeutics to support vaginal health; DARE-GML, a multi-target antimicrobial agent; DARE-RH1, a novel approach to non-hormonal contraception for men and women by targeting the CatSper ion channel; and DARE-PTB2 for the prevention and treatment of idiopathic preterm birth through inhibition of a stress response protein. Daré Bioscience, Inc. is headquartered in San Diego, California.