Head-To-Head Comparison: Grifols, (GRFS) and Jazz Pharmaceuticals PLC (JAZZ)

Grifols, (NASDAQ: GRFS) and Jazz Pharmaceuticals PLC (NASDAQ:JAZZ) are both mid-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, dividends, risk, analyst recommendations, valuation and institutional ownership.

Dividends

Grifols, pays an annual dividend of $0.28 per share and has a dividend yield of 1.2%. Jazz Pharmaceuticals PLC does not pay a dividend. Grifols, pays out 30.1% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Grifols, and Jazz Pharmaceuticals PLC, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Grifols, 1 1 3 0 2.40
Jazz Pharmaceuticals PLC 0 5 16 0 2.76

Jazz Pharmaceuticals PLC has a consensus price target of $181.71, suggesting a potential upside of 31.01%. Given Jazz Pharmaceuticals PLC’s stronger consensus rating and higher probable upside, analysts plainly believe Jazz Pharmaceuticals PLC is more favorable than Grifols,.

Insider & Institutional Ownership

21.8% of Grifols, shares are owned by institutional investors. Comparatively, 88.5% of Jazz Pharmaceuticals PLC shares are owned by institutional investors. 4.3% of Jazz Pharmaceuticals PLC shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Grifols, and Jazz Pharmaceuticals PLC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Grifols, 13.04% 17.96% 6.32%
Jazz Pharmaceuticals PLC 23.58% 22.92% 10.07%

Volatility & Risk

Grifols, has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500. Comparatively, Jazz Pharmaceuticals PLC has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.

Earnings & Valuation

This table compares Grifols, and Jazz Pharmaceuticals PLC’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Grifols, $4.48 billion 3.53 $603.60 million $0.93 24.88
Jazz Pharmaceuticals PLC $1.49 billion 5.59 $396.83 million $6.07 22.85

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

Summary

Jazz Pharmaceuticals PLC beats Grifols, on 11 of the 16 factors compared between the two stocks.

About Grifols,

Grifols, S.A., a specialty pharmaceutical company, develops, manufactures, and distributes biological medicines on plasma derived proteins in the United States, Canada, Spain, rest of the European Union, and internationally. The company specializes in providing infusion solutions, nutrition products, and medical devices for use in hospitals and clinics. It operates through four segments: Bioscience, Diagnostic, Hospital, and Raw Materials and Others. The Bioscience segment manufactures plasma derivatives for therapeutic use, including the reception, analysis, quarantine, classification, fractionation, and purification of plasma; and sells and distributes end products. This segment offers plasma products, such as IVIG, Factor VIII, A1PI, and albumin; and intramuscular immunoglobulins, ATIII, Factor IX, and plasma thromboplastin components. The Diagnostic segment focuses on researching, developing, manufacturing, and marketing in vitro diagnostics products comprising analytical instruments, reagents, software, and related products for use in clinical and blood bank laboratories. This segment serves blood donation centers, clinical analysis laboratories, and hospital immunohematology services. The Hospital segment manufactures and installs products used by hospitals consisting of parenteral solutions, and enteral and parenteral nutritional fluids. The Raw Materials and Others segment sells intermediate biological products; and renders manufacturing services to third party companies. The company also offers engineering services. Its products and services are used by healthcare providers to diagnose and treat patients with hemophilia, immune deficiencies, infectious diseases, and other medical conditions. The company serves hospitals and clinics, group purchasing organizations, governments, and other distributors through sales representatives, marketing partners, and third-party distributors. Grifols, S.A. was founded in 1940 and is headquartered in Barcelona, Spain.

About Jazz Pharmaceuticals PLC

Jazz Pharmaceuticals, Inc. is a specialty pharmaceutical company focusing on the development and commercialization of pharmaceutical products to meet unmet medical needs in neurology and psychiatry. As of December 31, 2009, the Company markets two products: Xyrem (sodium oxybate) for the treatment of both cataplexy and excessive daytime sleepiness in patients with narcolepsy; and Luvox CR (fluvoxamine maleate) for the treatment of both obsessive compulsive disorder and social anxiety disorder. Its marketed products and late-stage product candidate are Xyrem (sodium oxybate) oral solution, Luvox CR (fluvoxamine maleate) Extended-Release Capsules and JZP-6 (sodium oxybate). Its other product candidates in clinical development are oral tablet forms of sodium oxybate; JZP-8 (intranasal clonazepam); JZP-4 (elpetrigine), and JZP-7 (ropinirole gel).

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