Astrazeneca (NYSE:AZN) & Redhill Biopharma (NASDAQ:RDHL) Financial Analysis
by Kim Johansen · The Markets DailyRedhill Biopharma (NASDAQ:RDHL – Get Free Report) and Astrazeneca (NYSE:AZN – Get Free Report) are both healthcare companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, earnings, valuation and dividends.
Insider and Institutional Ownership
7.2% of Redhill Biopharma shares are owned by institutional investors. Comparatively, 20.4% of Astrazeneca shares are owned by institutional investors. 6.8% of Redhill Biopharma shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Risk & Volatility
Redhill Biopharma has a beta of 4.91, meaning that its share price is 391% more volatile than the S&P 500. Comparatively, Astrazeneca has a beta of 0.27, meaning that its share price is 73% less volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Redhill Biopharma and Astrazeneca, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Redhill Biopharma | 1 | 0 | 0 | 0 | 1.00 |
| Astrazeneca | 1 | 3 | 14 | 0 | 2.72 |
Astrazeneca has a consensus price target of $206.67, indicating a potential upside of 31.71%. Given Astrazeneca’s stronger consensus rating and higher possible upside, analysts plainly believe Astrazeneca is more favorable than Redhill Biopharma.
Profitability
This table compares Redhill Biopharma and Astrazeneca’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Redhill Biopharma | N/A | N/A | N/A |
| Astrazeneca | 17.02% | 31.45% | 13.20% |
Valuation & Earnings
This table compares Redhill Biopharma and Astrazeneca”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Redhill Biopharma | $290,000.00 | 10.48 | -$430,000.00 | $900.00 | 0.00 |
| Astrazeneca | $61.37 billion | 3.97 | $10.22 billion | $6.69 | 23.45 |
Astrazeneca has higher revenue and earnings than Redhill Biopharma. Redhill Biopharma is trading at a lower price-to-earnings ratio than Astrazeneca, indicating that it is currently the more affordable of the two stocks.
Summary
Astrazeneca beats Redhill Biopharma on 10 of the 14 factors compared between the two stocks.
About Redhill Biopharma
RedHill Biopharma Ltd., a specialty biopharmaceutical company, primarily focuses on gastrointestinal and infectious diseases. The company develops and commercializes Talicia for the treatment of H. pylori infection in adults; and Aemcolo for the treatment of travelers' diarrhea in adults. Its pipeline consists of five therapeutic candidates, which are in clinical development include opaganib for treating patients hospitalized with SARS-CoV-2 severe COVID-19 pneumonia, advanced unresectable cholangiocarcinoma, prostate cancer, and nuclear radiation protection; RHB-107 (upamostat) for treating outpatients infected with SARS-CoV-2 (COVID-19 disease) and advanced unresectable cholangiocarcinoma; RHB-104 for Crohn's disease; RHB-102 (Bekinda) for the treatment of acute gastroenteritis and gastritis, irritable bowel syndrome with diarrhea, and oncology support anti-emetic; and RHB-204 for pulmonary nontuberculous mycobacteria infections caused by mycobacterium avium complex. The company was incorporated in 2009 and is headquartered in Tel Aviv, Israel.
About Astrazeneca
AstraZeneca PLC, a biopharmaceutical company, focuses on the discovery, development, manufacturing, and commercialization of prescription medicines. Its marketed products include Calquence, Enhertu, Faslodex, Imfinzi, Iressa, Koselugo, Lumoxiti, Lynparza, Orpathys, Tagrisso, and Zoladex for oncology; Brilinta/Brilique, Bydureon/Byetta, BCise, Byetta, Crestor, Evrenzo, Farxiga/Forxiga, Komboglyze/Kombiglyze XR, Lokelma, Onglyza, Qtern, and Xigduo/Xigduo XR for cardiovascular, renal, and metabolism diseases; Bevespi Aerosphere, Breztri Aerosphere, Daliresp/Daxas, Duaklir Genuair, Fasenra, Pulmicort, Saphnelo, Symbicort, and Tudorza/Eklira/Bretaris for respiratory and immunology; and Andexxa/Ondexxya, Kanuma, Soliris, Strensiq, and Ultomiris for rare diseases. The company’s marketed products also comprise Synagis for respiratory syncytial virus; Fluenz Tetra/FluMist Quadrivalent for Influenza; Seroquel IR/Seroquel XR for schizophrenia bipolar disease; Nexium, and Losec/Prilosec for gastroenterology; and Vaxzevria and Evusheld for covid-19. The company serves primary care and specialty care physicians through distributors and local representative offices in the United Kingdom, rest of Europe, the Americas, Asia, Africa, and Australasia. It has a collaboration agreement with Regeneron Pharmaceuticals, Inc. to research, develop, and commercialize small molecule medicines for obesity; Neurimmune AG to develop and commercialize NI006; Ionis Pharmaceuticals, Inc. to develop eplontersen, a liver-targeted antisense therapy in Phase III development for the treatment of transthyretin amyloidosis; Proteros Biostructures GmbH to jointly discover novel small molecules for the treatment of hematological cancers; Sierra Oncology, Inc. to develop and commercialize AZD5153. The company was formerly known as Zeneca Group PLC and changed its name to AstraZeneca PLC in April 1999. AstraZeneca PLC was incorporated in 1992 and is headquartered in Cambridge, the United Kingdom.