Ascendis Pharma A/S (NASDAQ:ASND) and Bausch Health Companies (NYSE:BHC) Critical Analysis

Bausch Health Companies (NYSE:BHC) and Ascendis Pharma A/S (NASDAQ:ASND) are both mid-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, earnings and institutional ownership.

Institutional & Insider Ownership

78.7% of Bausch Health Companies shares are held by institutional investors. 8.1% of Bausch Health Companies shares are held by insiders. Comparatively, 40.0% of Ascendis Pharma A/S shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Bausch Health Companies has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500. Comparatively, Ascendis Pharma A/S has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500.

Earnings and Valuation

This table compares Bausch Health Companies and Ascendis Pharma A/S’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bausch Health Companies	$8.76 billion	0.29	-$592.00 million	($1.24)	-5.77
Ascendis Pharma A/S	$329.02 million	23.75	-$521.07 million	($9.61)	-13.96

Ascendis Pharma A/S has lower revenue, but higher earnings than Bausch Health Companies. Ascendis Pharma A/S is trading at a lower price-to-earnings ratio than Bausch Health Companies, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations and price targets for Bausch Health Companies and Ascendis Pharma A/S, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bausch Health Companies	0	2	1	0	2.33
Ascendis Pharma A/S	0	1	9	0	2.90

Bausch Health Companies currently has a consensus target price of $11.33, suggesting a potential upside of 58.51%. Ascendis Pharma A/S has a consensus target price of $179.00, suggesting a potential upside of 33.40%. Given Bausch Health Companies’ higher probable upside, equities research analysts plainly believe Bausch Health Companies is more favorable than Ascendis Pharma A/S.

Profitability

This table compares Bausch Health Companies and Ascendis Pharma A/S’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bausch Health Companies	-5.07%	-2,370.91%	4.88%
Ascendis Pharma A/S	-152.68%	-16,574.15%	-60.06%

Summary

Bausch Health Companies beats Ascendis Pharma A/S on 9 of the 14 factors compared between the two stocks.

About Bausch Health Companies

Bausch Health Companies Inc. operates as a diversified specialty pharmaceutical and medical device company in the United States and internationally. It develops, manufactures, and markets a range of products primarily in gastroenterology, hepatology, neurology, dermatology, international pharmaceuticals, over-the-counter (OTC) products, aesthetic medical devices, and eye health. The company operates through five segments: Salix, International, Solta Medical, Diversified, and Bausch + Lomb. The Salix segment provides gastroenterology products in the United States. The International segment sells aesthetic medical devices, branded pharmaceuticals, generic pharmaceuticals, and OTC products internationally. The Solta Medical segment engages in the sale of aesthetic medical devices. The Diversified segment offers pharmaceutical products in the areas of neurology and certain other therapeutic classes; generic products; ortho dermatologic; and dentistry products in the United States. The Bausch + Lomb segment offers products in the areas of vision care, surgical, and ophthalmic pharmaceuticals products. The company was formerly known as Valeant Pharmaceuticals International, Inc. and changed its name to Bausch Health Companies Inc. in July 2018. Bausch Health Companies Inc. is headquartered in Laval, Canada.

About Ascendis Pharma A/S

Ascendis Pharma A/S, a biopharmaceutical company, focuses on developing therapies for unmet medical needs. It offers SKYTROFA for treating patients with growth hormone deficiency (GHD). The company is also developing a pipeline of three independent endocrinology rare disease product candidates in clinical development, as well as focuses on advancing oncology therapeutic candidates. The company was incorporated in 2006 and is headquartered in Hellerup, Denmark.