Comparing Teva Pharmaceutical Industries (NYSE:TEVA) and Avidity Biosciences (NASDAQ:RNA)

Teva Pharmaceutical Industries (NYSE:TEVA) and Avidity Biosciences (NASDAQ:RNA) are both medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, risk, valuation, earnings, profitability and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings for Teva Pharmaceutical Industries and Avidity Biosciences, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Teva Pharmaceutical Industries	0	1	6	0	2.86
Avidity Biosciences	0	0	11	0	3.00

Teva Pharmaceutical Industries presently has a consensus target price of $23.43, indicating a potential upside of 53.08%. Avidity Biosciences has a consensus target price of $65.64, indicating a potential upside of 114.03%. Given Avidity Biosciences’ stronger consensus rating and higher possible upside, analysts plainly believe Avidity Biosciences is more favorable than Teva Pharmaceutical Industries.

Valuation and Earnings

This table compares Teva Pharmaceutical Industries and Avidity Biosciences”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Teva Pharmaceutical Industries	$16.54 billion	1.05	-$1.64 billion	($1.45)	-10.56
Avidity Biosciences	$10.90 million	335.77	-$212.22 million	($2.89)	-10.61

Avidity Biosciences has lower revenue, but higher earnings than Teva Pharmaceutical Industries. Avidity Biosciences is trading at a lower price-to-earnings ratio than Teva Pharmaceutical Industries, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Teva Pharmaceutical Industries and Avidity Biosciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Teva Pharmaceutical Industries	-9.91%	42.46%	6.65%
Avidity Biosciences	-2,772.45%	-27.66%	-24.56%

Volatility and Risk

Teva Pharmaceutical Industries has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500. Comparatively, Avidity Biosciences has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.

Insider and Institutional Ownership

54.0% of Teva Pharmaceutical Industries shares are held by institutional investors. 0.6% of Teva Pharmaceutical Industries shares are held by insiders. Comparatively, 3.7% of Avidity Biosciences shares are held by 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.

About Teva Pharmaceutical Industries

Teva Pharmaceutical Industries Limited develops, manufactures, markets, and distributes generic medicines, specialty medicines, and biopharmaceutical products in North America, Europe, Israel, and internationally. It offers generic medicines in various dosage forms, such as tablets, capsules, injectables, inhalants, liquids, transdermal patches, ointments, and creams; sterile products, hormones, high-potency drugs, and cytotoxic substances in parenteral and solid dosage forms; and generic products with medical devices and combination products. The company focuses on the central nervous system (CNS), respiratory, and oncology areas. It provides active pharmaceutical ingredients, as well as contract manufacturing services; and operates an out-licensing platform that offers a portfolio of products to other pharmaceutical companies. The company also offers BENDEKA and TREANDA injections for the treatment of chronic lymphocytic leukemia and indolent b-cell non-hodgkin’s lymphoma; GRANIX; TRISENOX; LONQUEX; and TEVAGRASTIM/RATIOGRASTIM. In addition, it provides COPAXONE for the treatment of relapsing forms of multiple sclerosis; AJOVY for the preventive treatment of migraine in adults; AUSTEDO for the treatment of neurodegenerative and movement disorders associated with Huntington’s disease and tardive dyskinesia; UZEDY for the treatment of schizophrenia; ProAir RespiClick inhalation powder; QVAR for treatment for asthma; BRALTUS, a long-acting muscarinic antagonist; CINQAIR/CINQAERO injection; DuoResp Spiromax, an inhaled corticosteroid and long-acting beta-agonist bronchodilator; and AirDuo RespiClick fluticasone propionate and salmeterol inhalation powder. The company offers its OTC products under SUDOCREM, NasenDuo, DICLOX FORTE, OLFEN Max, and FLEGAMINA brand names. It has collaboration agreements with MedinCell; Sanofi; Alvotech; and Biolojic Design Ltd., as well as license agreement with MODAG GmbH. The company was founded in 1901 and is based in Tel Aviv, Israel.

About Avidity Biosciences

Avidity Biosciences, Inc., a biopharmaceutical company, engages in the delivery of RNA therapeutics. It develops antibody oligonucleotide conjugates (AOC) that are designed to treat diseases previously untreatable with RNA therapeutics. The company's lead product candidate AOC 1001 for the treatment of myotonic dystrophy type 1, a rare monogenic muscle disease that is in phase 1/2 clinical trial. Its other products in pipeline include AOC 1044 for the treatment of duchenne muscular dystrophy, which is under phase 1/2 clinical development trial; and AOC 1020 to treat facioscapulohumeral muscular dystrophy that is in phase 1/2 clinical trial. The company is developing products for rare skeletal muscle and rare cardiac diseases. Avidity Biosciences, Inc. was incorporated in 2012 and is headquartered in San Diego, California.