China Biologic Products (CBPO) & Vertex Pharmaceuticals (VRTX) Head to Head Comparison

China Biologic Products (NASDAQ: CBPO) and Vertex Pharmaceuticals (NASDAQ:VRTX) are both medical companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, risk, profitability, dividends and valuation.

Volatility and Risk

China Biologic Products has a beta of 1.67, meaning that its share price is 67% more volatile than the S&P 500. Comparatively, Vertex Pharmaceuticals has a beta of 1.61, meaning that its share price is 61% more volatile than the S&P 500.

Profitability

This table compares China Biologic Products and Vertex Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
China Biologic Products 31.29% 21.49% 18.58%
Vertex Pharmaceuticals 10.59% 11.02% 6.28%

Analyst Recommendations

This is a breakdown of recent ratings for China Biologic Products and Vertex Pharmaceuticals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Biologic Products 0 1 2 0 2.67
Vertex Pharmaceuticals 0 1 25 0 2.96

China Biologic Products presently has a consensus target price of $137.50, indicating a potential upside of 66.06%. Vertex Pharmaceuticals has a consensus target price of $183.84, indicating a potential upside of 16.44%. Given China Biologic Products’ higher possible upside, analysts clearly believe China Biologic Products is more favorable than Vertex Pharmaceuticals.

Insider & Institutional Ownership

47.3% of China Biologic Products shares are owned by institutional investors. Comparatively, 94.1% of Vertex Pharmaceuticals shares are owned by institutional investors. 2.7% of China Biologic Products shares are owned by company insiders. Comparatively, 1.8% of Vertex Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares China Biologic Products and Vertex Pharmaceuticals’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
China Biologic Products $341.17 million 8.04 $104.77 million $3.97 20.86
Vertex Pharmaceuticals $2.49 billion 16.11 $263.48 million $1.04 151.82

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

China Biologic Products Company Profile

China Biologic Products Holdings, Inc. is a biopharmaceutical company. The Company is principally engaged in the research, development, manufacturing and sales of human plasma-based biopharmaceutical products in China. It operates through the manufacture and sales of human plasma products segment. China Biologic has a product portfolio with over 20 various dosage forms of plasma products and other biopharmaceutical products across nine categories.The Company’s products include human albumin, human immunoglobulin, immunoglobulin for intravenous injection (IVIG), human hepatitis B immunoglobulin, human rabies immunoglobulin, human tetanus immunoglobulin, placenta polypeptide, Factor VIII and human prothrombin complex concentrate (PCC).

Vertex Pharmaceuticals Company Profile

Vertex Pharmaceuticals Incorporated is engaged in discovering, developing, manufacturing and commercializing medicines for serious diseases. The Company is focused on developing and commercializing therapies for the treatment of cystic fibrosis (CF) and advancing its research and development programs in other indications. The Company’s marketed medicines are ORKAMBI and KALYDECO. ORKAMBI (lumacaftor in combination with ivacaftor) is approved as a treatment for patients having two copies (homozygous) of the Delta-F508 (F508del) mutation in their cystic fibrosis transmembrane conductance regulator (CFTR) gene. KALYDECO (ivacaftor) is approved for the treatment of CF patients having the G551D mutation or other specified mutations in their CFTR gene. The Company’s development programs in the field of CF include Tezacaftor (VX-661), VX-152, VX-440, VX-659, VX-445 and VX-371. VX-152, VX-440, VX-659 and VX-445 are CFTR corrector compounds.

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