Analyzing Mylan (MYL) & NephroGenex (NRXGQ)

Mylan (NASDAQ: MYL) and NephroGenex (OTCMKTS:NRXGQ) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, risk, dividends and analyst recommendations.

Insider and Institutional Ownership

75.0% of Mylan shares are owned by institutional investors. 0.7% of Mylan shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and price targets for Mylan and NephroGenex, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mylan 0 6 11 0 2.65
NephroGenex 0 0 1 0 3.00

Mylan presently has a consensus price target of $42.09, suggesting a potential upside of 5.19%. NephroGenex has a consensus price target of $17.50, suggesting a potential upside of 624,900.00%. Given NephroGenex’s stronger consensus rating and higher probable upside, analysts plainly believe NephroGenex is more favorable than Mylan.

Profitability

This table compares Mylan and NephroGenex’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mylan 7.28% 20.63% 7.19%
NephroGenex N/A -211.97% -105.90%

Valuation & Earnings

This table compares Mylan and NephroGenex’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mylan $11.08 billion 1.94 $480.00 million $1.66 24.10
NephroGenex N/A N/A N/A ($2.32) 0.00

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

Risk and Volatility

Mylan has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500. Comparatively, NephroGenex has a beta of -0.98, suggesting that its share price is 198% less volatile than the S&P 500.

Summary

Mylan beats NephroGenex on 9 of the 11 factors compared between the two stocks.

Mylan Company Profile

Mylan N.V. is a global pharmaceutical company. The Company develops, licenses, manufactures, markets and distributes generic and branded generic products for resale by others; specialty pharmaceuticals, and active pharmaceutical ingredients (APIs). It operates through two segments: Generics and Specialty. Its Generics segment primarily develops, manufactures, sells and distributes generic or branded generic pharmaceutical products in tablet, capsule, injectable, transdermal patch, gel, cream or ointment form, as well as API. Its Specialty segment is focused on respiratory and allergy therapies. The EpiPen Auto-Injector, which is used in the treatment of severe allergic reactions, is an epinephrine auto-injector. Its Perforomist Inhalation Solution is a long-acting beta2-adrenergic agonist indicated for the maintenance treatment of bronchoconstriction in chronic obstructive pulmonary disorder (COPD) patients. The Company also markets ULTIVA, which is an analgesic agent.

NephroGenex Company Profile

NephroGenex, Inc. is a pharmaceutical company. The Company is focused on the development of therapeutics to treat kidney disease. The Company has paused the clinical program of its product candidate, oral Pyridorin, for the treatment of diabetic nephropathy. The Company was primarily focused on the Phase III Pyridorin program, and other planned clinical and nonclinical studies and other work needed to submit Pyridorin for acute kidney injury (AKI), as well as the treatment of diabetic nephropathy in patients with Type II diabetes for regulatory approval in the United States and Europe. The Company has not generated any revenues.

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