Financial Contrast: Chugai Pharmaceutical (OTCMKTS:CHGCY) & Astellas Pharma (OTCMKTS:ALPMY)

Chugai Pharmaceutical (OTCMKTS:CHGCY) and Astellas Pharma (OTCMKTS:ALPMY) are both large-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, profitability, risk, analyst recommendations, dividends and institutional ownership.

Volatility and Risk

Chugai Pharmaceutical has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500. Comparatively, Astellas Pharma has a beta of 0.37, indicating that its share price is 63% less volatile than the S&P 500.

Institutional and Insider Ownership

0.0% of Chugai Pharmaceutical shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations for Chugai Pharmaceutical and Astellas Pharma, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chugai Pharmaceutical	0	0	0	0	N/A
Astellas Pharma	0	0	0	0	N/A

Dividends

Chugai Pharmaceutical pays an annual dividend of $0.19 per share and has a dividend yield of 0.8%. Astellas Pharma pays an annual dividend of $0.30 per share and has a dividend yield of 2.6%. Chugai Pharmaceutical pays out 27.9% of its earnings in the form of a dividend. Astellas Pharma pays out 428.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings & Valuation

This table compares Chugai Pharmaceutical and Astellas Pharma”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chugai Pharmaceutical	$7.93 billion	9.34	$2.31 billion	$0.68	33.08
Astellas Pharma	$11.11 billion	1.86	$113.00 million	$0.07	163.43

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

Profitability

This table compares Chugai Pharmaceutical and Astellas Pharma’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chugai Pharmaceutical	32.68%	21.45%	18.07%
Astellas Pharma	1.17%	7.79%	3.52%

Summary

Chugai Pharmaceutical beats Astellas Pharma on 9 of the 12 factors compared between the two stocks.

About Chugai Pharmaceutical

Chugai Pharmaceutical Co., Ltd., together with its subsidiaries, engages in the research, development, manufacture, sale, importation, and exportation of pharmaceuticals in Japan and internationally. The company’s products for oncology primarily include Avastin, FoundationOne, Polivy, Rozlytrek, Tecentriq, Perjeta, Alecensa, Herceptin, Kadcyla, Rituxan, and Gazyva; Edirol, an Osteoporosis agent; Mircera, an erythropoiesis agent; Oxarol, an agent for secondary hyperparathyroidism; and other diseases comprise Hemlibra, CellCept, Bonviva, Tamiflu, Evrysdi, Ronapreve, Vabysmo, and Enspryng. It has various development product candidates in the areas of oncology, immunology, neuroscience, hematology, ophthalmology, and other diseases. Chugai Pharmaceutical Co., Ltd. has strategic alliances and collaboration with Roche Group. The company was founded in 1925 and is headquartered in Chuo, Japan. Chugai Pharmaceutical Co., Ltd. operates as a subsidiary of Roche Holding Ltd.

About Astellas Pharma

Astellas Pharma Inc. manufactures, markets, and imports and exports pharmaceuticals in Japan and internationally. The company provides XTANDI, a treatment for prostate cancer; XOSPATA, a treatment for patients who have relapsed or refractory acute myeloid leukemia with a FLT3 mutation; and PADCEV, a treatment for patients with metastatic urothelial cancer. It also offers Evrenzo, a treatment for anemia associated with chronic kidney disease; Betanis/Myrabetriq/BETMIGA, a treatment for overactive bladder; and Prograf and Advagraf/Graceptor/ASTAGRAF XL immunosuppressants. Th company has a research collaboration with Vivtex Corporation to evaluate Vivtex’s GI-ORIS screening and formulation platform technology to support the development of novel and oral versions of a therapeutic candidate provided by Astellas; and a partnership agreement with Roche Diabetes Care Japan Co., Ltd. to develop and commercialize integrated diabetes self-management solution. The company was founded in 1923 and is headquartered in Tokyo, Japan.