Teva Pharmaceutical Industries (NYSE:TEVA) vs. Innoviva (NASDAQ:INVA) Head-To-Head Comparison

Teva Pharmaceutical Industries (NYSE:TEVA) and Innoviva (NASDAQ:INVA) are both healthcare companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, profitability and institutional ownership.

Insider & Institutional Ownership

54.0% of Teva Pharmaceutical Industries shares are owned by institutional investors. Comparatively, 99.1% of Innoviva shares are owned by institutional investors. 0.5% of Teva Pharmaceutical Industries shares are owned by company insiders. Comparatively, 2.0% of Innoviva shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for Teva Pharmaceutical Industries and Innoviva, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Teva Pharmaceutical Industries	1	1	13	0	2.80
Innoviva	0	1	5	0	2.83

Teva Pharmaceutical Industries currently has a consensus price target of $48.15, indicating a potential upside of 10.63%. Innoviva has a consensus price target of $39.00, indicating a potential upside of 105.59%. Given Innoviva’s stronger consensus rating and higher possible upside, analysts clearly believe Innoviva is more favorable than Teva Pharmaceutical Industries.

Earnings and Valuation

This table compares Teva Pharmaceutical Industries and Innoviva”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Teva Pharmaceutical Industries	$17.26 billion	2.94	$1.41 billion	$0.43	101.22
Innoviva	$411.33 million	3.33	$271.17 million	$1.99	9.53

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

Profitability

This table compares Teva Pharmaceutical Industries and Innoviva’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Teva Pharmaceutical Industries	2.94%	33.20%	6.59%
Innoviva	44.13%	22.91%	16.67%

Risk and Volatility

Teva Pharmaceutical Industries has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500. Comparatively, Innoviva has a beta of 0.38, meaning that its stock price is 62% less volatile than the S&P 500.

Summary

Innoviva beats Teva Pharmaceutical Industries on 8 of the 14 factors compared between the two stocks.

About Teva Pharmaceutical Industries

Teva Pharmaceutical Industries is a global pharmaceutical company that develops, manufactures and markets generic medicines, specialty medicines and biosimilars. Its portfolio spans treatments for conditions including neurological disorders, respiratory diseases and cancer, alongside a broad range of generic medicines across therapeutic areas. Founded in Jerusalem in 1901, Teva has grown from a regional pharmaceutical business into an international company. It serves patients and healthcare providers in markets around the world, including North America, Europe and other regions.

About Innoviva

Innoviva, Inc. is a biopharmaceutical company with two main areas of activity: royalty interests in respiratory medicines developed with GSK and the development and commercialization of specialty medicines. Its respiratory-related royalties include products such as Trelegy Ellipta, Anoro Ellipta and Breo Ellipta, which are used to treat chronic obstructive pulmonary disease and asthma and are marketed by GSK. Through its specialty therapeutics operations, Innoviva focuses on medicines for serious infections and other acute-care conditions.