Comparing Supernus Pharmaceuticals (NASDAQ:SUPN) and Bausch Health Cos (NYSE:BHC)

Supernus Pharmaceuticals (NASDAQ:SUPN) and Bausch Health Cos (NYSE:BHC) are both mid-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, earnings, analyst recommendations, institutional ownership, dividends, valuation and risk.

Earnings & Valuation

This table compares Supernus Pharmaceuticals and Bausch Health Cos”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Supernus Pharmaceuticals	$665.13 million	4.70	$73.86 million	$1.15	48.43
Bausch Health Cos	$10.03 billion	0.25	-$46.00 million	$0.97	7.06

Supernus Pharmaceuticals has higher earnings, but lower revenue than Bausch Health Cos. Bausch Health Cos is trading at a lower price-to-earnings ratio than Supernus Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Supernus Pharmaceuticals has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500. Comparatively, Bausch Health Cos has a beta of 0.43, meaning that its stock price is 57% less volatile than the S&P 500.

Institutional & Insider Ownership

78.7% of Bausch Health Cos shares are owned by institutional investors. 8.8% of Supernus Pharmaceuticals shares are owned by company insiders. Comparatively, 20.0% of Bausch Health Cos shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Supernus Pharmaceuticals and Bausch Health Cos, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Supernus Pharmaceuticals	0	1	4	1	3.00
Bausch Health Cos	0	3	0	0	2.00

Supernus Pharmaceuticals currently has a consensus target price of $63.25, suggesting a potential upside of 13.55%. Bausch Health Cos has a consensus target price of $9.00, suggesting a potential upside of 31.48%. Given Bausch Health Cos’ higher probable upside, analysts plainly believe Bausch Health Cos is more favorable than Supernus Pharmaceuticals.

Profitability

This table compares Supernus Pharmaceuticals and Bausch Health Cos’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Supernus Pharmaceuticals	9.70%	14.22%	10.82%
Bausch Health Cos	0.99%	-852.36%	5.25%

Summary

Supernus Pharmaceuticals beats Bausch Health Cos on 11 of the 15 factors compared between the two stocks.

About Supernus Pharmaceuticals

Supernus Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the development and commercialization of products for the treatment of central nervous system (CNS) diseases in the United States. The company's commercial products are Trokendi XR, an extended release topiramate product indicated for the treatment of epilepsy, as well as for the prophylaxis of migraine headache; and Oxtellar XR, an extended release oxcarbazepine for the monotherapy treatment of partial onset seizures in adults and children between 6 to 17 years of age. It also offers comprise Qelbree, a novel non-stimulant indicated for the treatment of attention-deficit hyperactivity disorder (ADHD) in adults and pediatric patients 6 years and older; APOKYN for the acute intermittent treatment of hypomobility or off episodes in patients with advanced Parkinson's Disease (PD); XADAGO for treating levodopa/carbidopa in patients with PD experiencing off episodes; MYOBLOC, a Type B toxin product indicated for the treatment of cervical dystonia and sialorrhea in adults; GOCOVRI for the treatment of dyskinesia in patients with PD; and Osmolex ER for the treatment of Parkinson's disease and drug-induced extrapyramidal reaction in adult patients. In addition, the company's product candidates include SPN-830, a late-stage drug/device combination product candidate for the treatment of off episodes in PD patients; SPN-817, a novel first-in-class selective acetylcholinesterase inhibitor, which is in Phase II clinical trials for the treatment of epilepsy; SPN-820, a product candidate in Phase II clinical trials for treating resistant depression; SPN-443, a preclinical product for the treatment of ADHD/CNS; and SPN-446 for narcolepsy and SPN-448 for the treatment of CNS which is in discovery stage. It markets and sells its products through pharmaceutical wholesalers, specialty pharmacies, and distributors. Supernus Pharmaceuticals, Inc. was incorporated in 2005 and is headquartered in Rockville, Maryland.

About Bausch Health Cos

Bausch Health Companies Inc. operates as a diversified specialty pharmaceutical and medical device company in the United States and internationally. It develops, manufactures, and markets a range of products primarily in gastroenterology, hepatology, neurology, dermatology, international pharmaceuticals, over-the-counter (OTC) products, aesthetic medical devices, and eye health. The company operates through five segments: Salix, International, Solta Medical, Diversified, and Bausch + Lomb. The Salix segment provides gastroenterology products in the United States. The International segment sells aesthetic medical devices, branded pharmaceuticals, generic pharmaceuticals, and OTC products internationally. The Solta Medical segment engages in the sale of aesthetic medical devices. The Diversified segment offers pharmaceutical products in the areas of neurology and certain other therapeutic classes; generic products; ortho dermatologic; and dentistry products in the United States. The Bausch + Lomb segment offers products in the areas of vision care, surgical, and ophthalmic pharmaceuticals products. The company was formerly known as Valeant Pharmaceuticals International, Inc. and changed its name to Bausch Health Companies Inc. in July 2018. Bausch Health Companies Inc. is headquartered in Laval, Canada.