Head-To-Head Analysis: Supernus Pharmaceuticals (NASDAQ:SUPN) vs. Hutchison China MediTech (NASDAQ:HCM)

Supernus Pharmaceuticals (NASDAQ:SUPN) and Hutchison China MediTech (NASDAQ:HCM) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, risk, analyst recommendations, profitability, valuation and earnings.

Risk and Volatility

Supernus Pharmaceuticals has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500. Comparatively, Hutchison China MediTech has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500.

Profitability

This table compares Supernus Pharmaceuticals and Hutchison China MediTech’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Supernus Pharmaceuticals 27.09% 20.02% 9.67%
Hutchison China MediTech N/A N/A N/A

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Supernus Pharmaceuticals and Hutchison China MediTech, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Supernus Pharmaceuticals 0 2 1 0 2.33
Hutchison China MediTech 0 0 2 0 3.00

Supernus Pharmaceuticals presently has a consensus target price of $27.67, indicating a potential downside of 2.06%. Hutchison China MediTech has a consensus target price of $40.00, indicating a potential upside of 40.30%. Given Hutchison China MediTech’s stronger consensus rating and higher possible upside, analysts plainly believe Hutchison China MediTech is more favorable than Supernus Pharmaceuticals.

Earnings and Valuation

This table compares Supernus Pharmaceuticals and Hutchison China MediTech’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Supernus Pharmaceuticals $392.76 million 3.81 $113.06 million $2.10 13.45
Hutchison China MediTech $204.89 million 20.25 -$106.02 million ($0.80) -35.64

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

Institutional & Insider Ownership

96.1% of Supernus Pharmaceuticals shares are owned by institutional investors. Comparatively, 33.5% of Hutchison China MediTech shares are owned by institutional investors. 6.6% of Supernus Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Supernus Pharmaceuticals beats Hutchison China MediTech on 10 of the 14 factors compared between the two stocks.

Supernus Pharmaceuticals Company Profile

Supernus Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the development and commercialization of products for the treatment of central nervous system diseases in the United States. Its commercial products include 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 epilepsy seizures in adults and children between 6 to 17 years of age. The company's commercial products also comprise APOKYN, a product indicated for the acute intermittent treatment of hypomobility or off episodes in patients with advanced Parkinson's Disease (PD); XADAGO, a product indicated as adjunctive treatment to levodopa/carbidopa in patients with PD experiencing off episodes; and MYOBLOC, a Type B toxin product indicated for the treatment of cervical dystonia and sialorrhea in adults. In addition, its product candidates include SPN-812, which has completed Phase III clinical trials that is used for the treatment of attention deficit hyperactivity disorder (ADHD); SPN-830, a late-stage drug/device combination product candidate for the prevention of off episodes in PD; SPN-817, a novel product candidate in Phase I clinical trials for the treatment of severe epilepsy; and SPN-820, a novel product candidate in Phase I clinical trials for treatment resistant depression. The company markets and sells its products through pharmaceutical wholesalers, specialty pharmacies, and distributors. It has a development and option agreement with Navitor Pharmaceuticals, Inc. to conduct a Phase II clinical program for NV-5138 in treatment-resistant depression. The company was founded in 2005 and is headquartered in Rockville, Maryland.

Hutchison China MediTech Company Profile

Hutchison China MediTech Limited, a commercial-stage biopharmaceutical company, discovers, develops, and commercializes targeted therapeutics and immunotherapies for cancer and immunological diseases worldwide. It operates in two segments, Oncology/Immunology and Other Ventures. It offers research and development services; and manufactures, distributes, markets, and sells prescription and over-the-counter pharmaceutical, and consumer health products. The company is developing Savolitinib, an inhibitor for non-small cell lung cancer (NSCLC), papillary and clear cell renal cell carcinoma, colorectal cancer (CRC), and gastric cancer (GC); and Fruquintinib, an inhibitor for CRC, breast cancer, GC, endometrial cancer (EMC), NSCLC, hepatocellular carcinoma, and gastrointestinal and solid tumors. It also develops Surufatinib, an inhibitor for neuroendocrine tumors (NET), pancreatic NET, non-pancreatic NET, biliary tract cancer, sarcoma and soft tissue sarcoma, neuroendocrine neoplasms, esophageal cancer, small cell lung cancer, GC, thyroid cancer, EMC, NSCLC, and solid tumors; HMPL-523, an inhibitor for indolent non-Hodgkin's lymphoma (NHL), B-cell malignancies, and immune thrombocytopenic purpura; and HMPL-689 for indolent non-Hodgkin's, follicular, marginal zone, mantle cell, diffuse large B cell, chronic lymphocytic leukemia/small lymphocytic, and Hodgkin's lymphoma. The company is developing HMPL-453, an inhibitor for intrahepatic cholangiocarcinoma; HMPL-306, an inhibitor for hematological malignancies, gliomas, and solid tumors; HMPL-295 for solid tumors; and HMPL-813 and HMPL-309 EGFR inhibitors. Hutchison China MediTech Limited has collaboration agreement with AstraZeneca AB (publ), Lilly (Shanghai) Management Company Limited, BeiGene, Inmagene Biopharmaceuticals Co. Ltd., Innovent Biologics (Suzhou) Co., Inc., Genor Biopharma Co. Ltd., and Shanghai Junshi Biosciences Co. Ltd. The company was incorporated in 2000 and is headquartered in Central, Hong Kong.

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