Baxalta (BXLT) and Fortress Biotech (FBIO) Financial Survey

Baxalta (NYSE: BXLT) and Fortress Biotech (NASDAQ:FBIO) are both healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, earnings, analyst recommendations, risk and profitability.

Profitability

This table compares Baxalta and Fortress Biotech’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Baxalta 9.37% 14.28% 4.62%
Fortress Biotech -65.80% -61.43% -33.68%

Institutional & Insider Ownership

12.3% of Fortress Biotech shares are held by institutional investors. 33.3% of Fortress Biotech shares are held 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 Ratings

This is a breakdown of recent ratings and target prices for Baxalta and Fortress Biotech, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Baxalta 0 0 0 0 N/A
Fortress Biotech 0 0 4 0 3.00

Fortress Biotech has a consensus target price of $11.00, suggesting a potential upside of 183.51%. Given Fortress Biotech’s higher probable upside, analysts plainly believe Fortress Biotech is more favorable than Baxalta.

Dividends

Baxalta pays an annual dividend of $0.28 per share and has a dividend yield of 0.6%. Fortress Biotech does not pay a dividend. Baxalta pays out 23.5% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares Baxalta and Fortress Biotech’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Baxalta N/A N/A N/A $1.19 38.67
Fortress Biotech $16.48 million 11.93 -$55.09 million ($1.83) -2.12

Baxalta has higher revenue, but lower earnings than Fortress Biotech. Fortress Biotech is trading at a lower price-to-earnings ratio than Baxalta, indicating that it is currently the more affordable of the two stocks.

Summary

Fortress Biotech beats Baxalta on 6 of the 11 factors compared between the two stocks.

Baxalta Company Profile

Baxalta Incorporated (Baxalta) is a biopharmaceutical company with a portfolio of differentiated therapies that seek to address medical needs across various disease areas, including hemophilia, immunology and oncology. Baxalta’s categories of products include Hemophilia products, such as Advate, Adynovate, Recombinate, Hemofil M, Immunate, Immunine, Rixubis and Prothromplex Total; Inhibitor Therapies products, including FEIBA and OBIZUR; Immunoglobulin Therapies products, which include GAMMAGARD LIQUID/KIOVIG, HYQVIA, GAMMAGARD S/D and SUBCUVIA; BioTherapeutics products, including FLEXBUMIN, BUMINATE, ARALAST NP, GLASSIA NP and CEPROTIN, and Oncology product, such as ONCASPAR. Baxalta Company develops, manufactures and markets a portfolio of treatments for hemophilia and other bleeding disorders, immune deficiencies, alpha-1 antitrypsin deficiency, burns and shock, and other chronic and acute medical conditions, as well as oncology treatments for acute lymphoblastic leukemia.

Fortress Biotech Company Profile

Fortress Biotech, Inc., formerly Coronado Biosciences, Inc., is a biopharmaceutical company. The Company is involved in the development of immunotherapy agents for the treatment of autoimmune diseases and cancer. Its sole product candidate is CNDO-109. The Company is also focused on acquiring, developing and commercializing pharmaceutical and biotechnology products. The Company’s product, CNDO-109, is a lysate (disrupted Closteroviridae (CTV)-1 cells, cell membrane fragments, cell proteins and other cellular components) that activates donor Natural Killer (NK) cells. CTV-1 is a leukemic cell line re-classified as a T-cell acute lymphocytic leukemia (ALL). The Company holds the license to develop and commercialize CNDO-109 to activate NK cells for the treatment of cancer-related and other conditions, and a non-exclusive license to certain clinical data solely for use in the Investigational new drug (IND) for CNDO-109. The Company is conducting the Phase I clinical studies of CNDO-109.

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