Critical Analysis: Johnson & Johnson (NYSE:JNJ) vs. CASI Pharmaceuticals (NASDAQ:CASI)

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for CASI Pharmaceuticals and Johnson & Johnson, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CASI Pharmaceuticals	1	0	0	0	1.00
Johnson & Johnson	0	6	18	1	2.80

Johnson & Johnson has a consensus price target of $272.83, suggesting a potential downside of 0.83%. Given Johnson & Johnson’s stronger consensus rating and higher probable upside, analysts clearly believe Johnson & Johnson is more favorable than CASI Pharmaceuticals.

Volatility and Risk

CASI Pharmaceuticals has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500. Comparatively, Johnson & Johnson has a beta of 0.24, suggesting that its share price is 76% less volatile than the S&P 500.

Institutional and Insider Ownership

22.2% of CASI Pharmaceuticals shares are owned by institutional investors. Comparatively, 69.6% of Johnson & Johnson shares are owned by institutional investors. 21.2% of CASI Pharmaceuticals shares are owned by company insiders. Comparatively, 0.2% of Johnson & Johnson shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares CASI Pharmaceuticals and Johnson & Johnson”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CASI Pharmaceuticals	$26.85 million	0.10	-$39.26 million	($3.01)	-0.07
Johnson & Johnson	$97.93 billion	6.77	$26.80 billion	$8.63	31.88

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CASI Pharmaceuticals	-183.93%	N/A	-131.54%
Johnson & Johnson	21.48%	32.42%	13.35%

Summary

Johnson & Johnson beats CASI Pharmaceuticals on 13 of the 15 factors compared between the two stocks.

About CASI Pharmaceuticals

CASI Pharmaceuticals, Inc., a biopharmaceutical company, develops and commercializes therapeutics and pharmaceutical products in the People's Republic of China, the United States, and internationally. It offers EVOMELA, an intravenous formulation of melphalan for use as a conditioning treatment prior to stem cell transplantation, and as a palliative treatment for patients with multiple myeloma. The company's other hematology/oncology assets in pipeline include CNCT 19, an autologous CD19 CAR-T investigative product; BI-1206, novel anti-Fc?RIIB antibody, for the treatment of solid tumors and relapsed/refractory non-hodgkin lymphoma; CB-5339, a novel VCP/p97 inhibitor that focuses on valosin-containing protein (VCP)/p97 as a novel target in protein homeostasis, DNA damage response, and other cellular stress pathways for therapeutic use in the treatment of patients with various malignancies; CID-103, a human IgG1 anti-CD38 monoclonal antibody; and Thiotepa, a chemotherapeutic agent, which has various indications, including use as a conditioning treatment for use prior to certain allogeneic haemopoietic stem cell transplants. The company has licensing agreements with Juventas Cell Therapy Ltd.; BioInvent International AB; Black Belt Therapeutics Limited; Cleave Therapeutics, Inc.; and Acrotech Biopharma L.L.C. to develop and commercialize its commercial product EVOMELA. It also has distribution agreements with China Resources Pharmaceutical Commercial Group International Trading Co., Ltd; Pharmathen Global BV; and Riemser Pharma GmbH. CASI Pharmaceuticals, Inc. was incorporated in 1991 and is based in Beijing, the People's Republic of China.

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.