Investors seeking to compare Bioqual (OTCMKTS:BIOQ) and Elanco Animal Health (NYSE:ELAN) may find significant differences in their investment potential. This article evaluates both companies based on institutional ownership, profitability, earnings, dividends, and analyst recommendations to determine which stock presents a more appealing opportunity.
Institutional and Insider Ownership
Elanco Animal Health boasts a strong institutional ownership, with 97.5% of its shares held by institutional investors. This high percentage indicates that major financial entities, such as endowments and hedge funds, have confidence in the company’s long-term performance. In contrast, only 39.2% of Bioqual’s shares are owned by insiders, while Elanco has a mere 0.9% insider ownership. This disparity suggests that Elanco is viewed more favorably by larger investment firms.
Earnings and Valuation
When analyzing revenue and earnings, Elanco outperforms Bioqual in both categories. The comparison reveals that Elanco has higher revenue and earnings per share. Notably, Bioqual is currently trading at a lower price-to-earnings ratio than Elanco, indicating that it may be a more affordable investment at this time.
Profitability and Risk
In assessing profitability, Elanco also leads with stronger net margins and higher returns on equity and assets compared to Bioqual. Regarding volatility, Bioqual has a beta of -0.08, suggesting its stock price is 108% less volatile than the S&P 500. Conversely, Elanco has a beta of 1.71, indicating it is 71% more volatile than the broader market. This information is crucial for investors who prefer stability over risk.
Analyst ratings further illuminate the investment landscape. According to MarketBeat.com, Elanco has a consensus target price of $21.56, which implies a potential downside of 7.72%. This outlook, despite a potential decline, reflects a stronger consensus rating for Elanco compared to Bioqual, suggesting that analysts favor Elanco as the more promising investment option.
Company Overviews
Bioqual, headquartered in Rockville, Maryland, specializes in pre-clinical research services for commercial and government clients in the United States. Founded in 1981, the company focuses on research in areas such as COVID-19, AIDS, and various viral infections, including Zika and dengue. Their services encompass sample processing, virus neutralization assays, and various cell-based assays.
Elanco Animal Health, established in 1954 and based in Greenfield, Indiana, develops and markets products for both pets and farm animals. Its extensive range includes parasiticides, vaccines for pet health, and a variety of products for livestock and aquaculture. Elanco’s diverse portfolio caters to veterinarians and animal producers, highlighting its significant role in the animal health market.
In summary, Elanco Animal Health surpasses Bioqual in 14 out of 15 evaluated factors, suggesting a more favorable investment environment. With its strong institutional backing, higher profitability, and better analyst ratings, Elanco presents a compelling case for investors.
