Critical Survey: Evolus (NASDAQ:EOLS) and Chugai Pharmaceutical (OTCMKTS:CHGCY)

Evolus (NASDAQ:EOLS) and Chugai Pharmaceutical (OTCMKTS:CHGCY) are both healthcare companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.

Insider and Institutional Ownership

90.7% of Evolus shares are owned by institutional investors. Comparatively, 0.0% of Chugai Pharmaceutical shares are owned by institutional investors. 5.0% of Evolus shares are owned by company 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.

Valuation and Earnings

This table compares Evolus and Chugai Pharmaceutical”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Evolus	$316.49 million	1.94	-$51.64 million	($0.52)	-17.88
Chugai Pharmaceutical	$8.41 billion	8.45	$2.91 billion	$0.92	23.47

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

Risk and Volatility

Evolus has a beta of 1.42, meaning that its stock price is 42% more volatile than the S&P 500. Comparatively, Chugai Pharmaceutical has a beta of 0.59, meaning that its stock price is 41% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Evolus and Chugai Pharmaceutical, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Evolus	1	1	4	0	2.50
Chugai Pharmaceutical	0	3	1	1	2.60

Evolus presently has a consensus price target of $14.50, indicating a potential upside of 55.91%. Given Evolus’ higher probable upside, equities analysts plainly believe Evolus is more favorable than Chugai Pharmaceutical.

Profitability

This table compares Evolus and Chugai Pharmaceutical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Evolus	-10.85%	N/A	-13.00%
Chugai Pharmaceutical	35.09%	23.76%	19.92%

Summary

Chugai Pharmaceutical beats Evolus on 10 of the 15 factors compared between the two stocks.

About Evolus

Evolus, Inc., a performance beauty company, focuses on delivering products in the cash-pay aesthetic market in the United States, Canada, and Europe. The company offers Jeuveau, a proprietary 900 kilodalton purified botulinum toxin type A formulation for the temporary improvement in the appearance of moderate to severe glabellar lines in adults. It also provides dermal filler products under the Estyme and Evolysse names. The company was incorporated in 2012 and is headquartered in Newport Beach, California.

About Chugai Pharmaceutical

Chugai Pharmaceutical Co., Ltd., together with its subsidiaries, engages in the research, development, manufacture, sale, importation, and exportation of pharmaceuticals in Japan and internationally. The company’s products for oncology primarily include Avastin, FoundationOne, Polivy, Rozlytrek, Tecentriq, Perjeta, Alecensa, Herceptin, Kadcyla, Rituxan, and Gazyva; Edirol, an Osteoporosis agent; Mircera, an erythropoiesis agent; Oxarol, an agent for secondary hyperparathyroidism; and other diseases comprise Hemlibra, CellCept, Bonviva, Tamiflu, Evrysdi, Ronapreve, Vabysmo, and Enspryng. It has various development product candidates in the areas of oncology, immunology, neuroscience, hematology, ophthalmology, and other diseases. Chugai Pharmaceutical Co., Ltd. has strategic alliances and collaboration with Roche Group. The company was founded in 1925 and is headquartered in Chuo, Japan. Chugai Pharmaceutical Co., Ltd. operates as a subsidiary of Roche Holding Ltd.