Critical Comparison: Theravance Biopharma (NASDAQ:TBPH) and Gyre Therapeutics (NASDAQ:GYRE)

Gyre Therapeutics (NASDAQ:GYRE) and Theravance Biopharma (NASDAQ:TBPH) are both small-cap healthcare companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, analyst recommendations, dividends, earnings and risk.

Profitability

This table compares Gyre Therapeutics and Theravance Biopharma’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gyre Therapeutics	-15.47%	-6.57%	-5.35%
Theravance Biopharma	51.58%	-0.77%	-0.46%

Earnings and Valuation

This table compares Gyre Therapeutics and Theravance Biopharma”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gyre Therapeutics	$116.59 million	4.36	$5.03 million	($0.21)	-21.69
Theravance Biopharma	$104.31 million	8.48	$105.89 million	$1.01	16.86

Theravance Biopharma has lower revenue, but higher earnings than Gyre Therapeutics. Gyre Therapeutics is trading at a lower price-to-earnings ratio than Theravance Biopharma, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Gyre Therapeutics has a beta of 1.89, suggesting that its stock price is 89% more volatile than the S&P 500. Comparatively, Theravance Biopharma has a beta of 0.25, suggesting that its stock price is 75% less volatile than the S&P 500.

Institutional & Insider Ownership

24.0% of Gyre Therapeutics shares are held by institutional investors. Comparatively, 99.1% of Theravance Biopharma shares are held by institutional investors. 9.5% of Gyre Therapeutics shares are held by insiders. Comparatively, 7.6% of Theravance Biopharma shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Gyre Therapeutics and Theravance Biopharma, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gyre Therapeutics	1	1	0	0	1.50
Theravance Biopharma	0	7	0	0	2.00

Theravance Biopharma has a consensus price target of $19.00, indicating a potential upside of 11.57%. Given Theravance Biopharma’s stronger consensus rating and higher probable upside, analysts clearly believe Theravance Biopharma is more favorable than Gyre Therapeutics.

Summary

Theravance Biopharma beats Gyre Therapeutics on 10 of the 13 factors compared between the two stocks.

About Gyre Therapeutics

Gyre Therapeutics, Inc., a biopharmaceutical company, primarily focuses on the development and commercialization of Hydronidone for the treatment of Metabolic Dysfunction Associated Steatohepatitis in the United States. Its Hydronidone is also being evaluated for the treatment of liver fibrosis across a spectrum of chronic liver diseases. In addition, it advances a product pipeline in China, including Pirfenidone, for dermatomyositis interstitial lung disease, systemic sclerosis-associated interstitial lung disease, and pneumoconiosis, as well as for diabetic kidney disease; and product candidates for acute-on-chronic liver failure, chronic obstructive pulmonary disease, and pulmonary arterial hypertension. The company was founded in 2002 and is headquartered in San Diego, California.

About Theravance Biopharma

Theravance Biopharma, Inc. is a diversified biopharmaceutical company primarily focused on the discovery, development and commercialization of organ-selective medicines. Its purpose is to pioneer a new generation of small molecule drugs designed to better meet patient needs. Its research is focused in the areas of inflammation and immunology.
In pursuit of its purpose, Theravance Biopharma applies insights and innovation at each stage of its business and utilizes its internal capabilities and those of partners around the world. The Company applies organ-selective expertise to target disease biologically, to discover and develop medicines that may expand the therapeutic index with the goal of maximizing efficacy and limiting systemic side effects. These efforts leverage years of experience in developing lung-selective medicines to treat respiratory disease, including FDA-approved YUPELRI® (revefenacin) inhalation solution indicated for the maintenance treatment of patients with chronic obstructive pulmonary disease (COPD). Its pipeline of internally discovered programs is targeted to address significant patient needs.
Theravance Biopharma has an economic interest in potential future payments from Glaxo Group Limited or one of its affiliates (GSK) pursuant to its agreements with Innoviva, Inc. relating to certain programs, including TRELEGY.
For more information, please visit www.theravance.com.