Comparing Lundbeck (HLUYY) and Imperial Brands (IMBBY)

Lundbeck (OTCMKTS: HLUYY) and Imperial Brands (OTCMKTS:IMBBY) are both large-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, risk, valuation, dividends, profitability, earnings and institutional ownership.

Risk & Volatility

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Lundbeck has a beta of -0.01, meaning that its stock price is 101% less volatile than the S&P 500. Comparatively, Imperial Brands has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500.

Dividends

Lundbeck pays an annual dividend of $0.95 per share and has a dividend yield of 1.6%. Imperial Brands pays an annual dividend of $2.30 per share and has a dividend yield of 6.8%. Lundbeck pays out 57.2% of its earnings in the form of a dividend. Imperial Brands pays out 65.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Lundbeck and Imperial Brands, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lundbeck 1 0 0 0 1.00
Imperial Brands 0 5 1 0 2.17

Profitability

This table compares Lundbeck and Imperial Brands’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lundbeck 15.23% 27.73% 15.39%
Imperial Brands N/A N/A N/A

Insider & Institutional Ownership

0.1% of Lundbeck shares are held by institutional investors. Comparatively, 0.2% of Imperial Brands shares are held by institutional investors. 1.0% of Imperial Brands shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Lundbeck and Imperial Brands’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lundbeck $2.62 billion 4.41 $398.58 million $1.66 34.92
Imperial Brands $39.59 billion 0.81 $1.79 billion $3.49 9.67

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

Summary

Imperial Brands beats Lundbeck on 9 of the 14 factors compared between the two stocks.

About Lundbeck

H. Lundbeck A/S engages in the research, development, production, and sale of pharmaceuticals for the treatment of psychiatric and neurological disorders in Denmark and internationally. Its products include Abilify Maintena, Brintellix/Trintellix, Cipralex/Lexapro, Northera, Onfi, Rexulti, Sabril, and Xenazine. The company offers pharmaceutical products for the treatment of Alzheimer's disease, depression, Parkinson's disease, Schizophrenia, alcohol dependence, anxiety, Bipolar I disorder, Epilepsy, Huntington's disease, and symptomatic neurogenic orthostatic hypotension. H. Lundbeck A/S sells its products to distributors of pharmaceuticals, pharmacies, and hospitals. The company was founded in 1915 and is headquartered in Valby, Denmark.

About Imperial Brands

Imperial Brands PLC, formerly Imperial Tobacco Group PLC, is a fast-moving consumer goods company. The Company offers a range of cigarettes, fine cut and smokeless tobaccos, papers and cigars. The Company’s segments include Growth Markets, USA, Returns Markets North, Returns Markets South and Logistics. The Growth Markets segment includes Iraq, Norway, Russia, Saudi Arabia and Taiwan, and also includes Premium Cigar and Fontem Ventures. The Returns Markets North segment includes Australia, Belgium, Germany, the Netherlands, Poland and the United Kingdom. The Returns Markets South segment includes France, Spain and its African markets, including Algeria, Ivory Coast and Morocco. Its businesses include Tobacco and Logistics. The Tobacco business comprises the manufacture, marketing and sale of tobacco and tobacco-related products. The Logistics business comprises the distribution of tobacco products for tobacco product manufacturers.

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