Astellas Pharma (OTCMKTS:ALPMY) versus Bristol Myers Squibb (NYSE:BMY) Financial Analysis

Bristol Myers Squibb (NYSE:BMY) and Astellas Pharma (OTCMKTS:ALPMY) are both large-cap healthcare companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, earnings, profitability and risk.

Earnings & Valuation

This table compares Bristol Myers Squibb and Astellas Pharma”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bristol Myers Squibb	$49.19 billion	2.54	$7.05 billion	$4.54	13.47
Astellas Pharma	$14.21 billion	2.00	$1.83 billion	$1.31	11.97

Bristol Myers Squibb has higher revenue and earnings than Astellas Pharma. Astellas Pharma is trading at a lower price-to-earnings ratio than Bristol Myers Squibb, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

76.4% of Bristol Myers Squibb shares are owned by institutional investors. 0.1% of Bristol Myers Squibb shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for Bristol Myers Squibb and Astellas Pharma, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bristol Myers Squibb	1	15	11	3	2.53
Astellas Pharma	0	3	0	1	2.50

Bristol Myers Squibb presently has a consensus price target of $64.88, suggesting a potential upside of 6.08%. Given Bristol Myers Squibb’s stronger consensus rating and higher possible upside, research analysts plainly believe Bristol Myers Squibb is more favorable than Astellas Pharma.

Profitability

This table compares Bristol Myers Squibb and Astellas Pharma’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bristol Myers Squibb	18.87%	66.90%	14.74%
Astellas Pharma	16.01%	25.79%	12.87%

Dividends

Bristol Myers Squibb pays an annual dividend of $2.52 per share and has a dividend yield of 4.1%. Astellas Pharma pays an annual dividend of $0.29 per share and has a dividend yield of 1.8%. Bristol Myers Squibb pays out 55.5% of its earnings in the form of a dividend. Astellas Pharma pays out 22.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Bristol Myers Squibb has increased its dividend for 17 consecutive years. Bristol Myers Squibb is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

Bristol Myers Squibb has a beta of 0.19, meaning that its share price is 81% less volatile than the S&P 500. Comparatively, Astellas Pharma has a beta of 0.08, meaning that its share price is 92% less volatile than the S&P 500.

Summary

Bristol Myers Squibb beats Astellas Pharma on 17 of the 18 factors compared between the two stocks.

About Bristol Myers Squibb

Bristol-Myers Squibb Company discovers, develops, licenses, manufactures, markets, distributes, and sells biopharmaceutical products worldwide. It offers products for hematology, oncology, cardiovascular, immunology, fibrotic, and neuroscience diseases. The company's products include Eliquis for reduction in risk of stroke/systemic embolism in non-valvular atrial fibrillation, and for the treatment of DVT/PE; Opdivo for various anti-cancer indications, including bladder, blood, CRC, head and neck, RCC, HCC, lung, melanoma, MPM, stomach and esophageal cancer; Pomalyst/Imnovid for multiple myeloma; Orencia for active rheumatoid arthritis and psoriatic arthritis; and Sprycel for the treatment of Philadelphia chromosome-positive chronic myeloid leukemia. It also provides Yervoy for the treatment of patients with unresectable or metastatic melanoma; Empliciti for the treatment of multiple myeloma; Abecma for the treatment of relapsed or refractory multiple myeloma; Reblozyl for the treatment of anemia; Opdualag for the treatment of unresectable or metastatic melanoma; and Zeposia to treat relapsing forms of multiple sclerosis. In addition, the company offers Breyanzi for the treatment of relapsed or refractory large B-cell lymphoma; Onureg for the treatment of AML; Inrebic for the treatment of myelofibrosis; Camzyos for the treatment of symptomatic obstructive HCM to enhance functional capacity and symptom; Sotyktu for the treatment of moderate-to-severe plaque psoriasis; Augtyro for the treatment of locally advanced or metastatic ROS1-positive NSCLC; Revlimid, an oral immunomodulatory drug for the treatment of multiple myeloma; and Abraxane to treat breast cancer, NSCLC and pancreatic cancer. It sells products to wholesalers, distributors, pharmacies, retailers, hospitals, clinics, and government agencies. The company was formerly known as Bristol-Myers Company. Bristol-Myers Squibb Company was founded in 1887 and is headquartered in Princeton, New Jersey.

About Astellas Pharma

Astellas Pharma Inc. manufactures, markets, and imports and exports pharmaceuticals in Japan and internationally. The company provides XTANDI, a treatment for prostate cancer; XOSPATA, a treatment for patients who have relapsed or refractory acute myeloid leukemia with a FLT3 mutation; and PADCEV, a treatment for patients with metastatic urothelial cancer. It also offers Evrenzo, a treatment for anemia associated with chronic kidney disease; Betanis/Myrabetriq/BETMIGA, a treatment for overactive bladder; and Prograf and Advagraf/Graceptor/ASTAGRAF XL immunosuppressants. Th company has a research collaboration with Vivtex Corporation to evaluate Vivtex’s GI-ORIS screening and formulation platform technology to support the development of novel and oral versions of a therapeutic candidate provided by Astellas; and a partnership agreement with Roche Diabetes Care Japan Co., Ltd. to develop and commercialize integrated diabetes self-management solution. The company was founded in 1923 and is headquartered in Tokyo, Japan.