Critical Analysis: Roche (OTCMKTS:RHHBY) vs. FibroGen (NASDAQ:FGEN)

FibroGen (NASDAQ:FGEN) and Roche (OTCMKTS:RHHBY) are both medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, dividends, analyst recommendations, institutional ownership, risk and valuation.

Valuation & Earnings

This table compares FibroGen and Roche”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FibroGen	$180.02 million	0.40	-$284.23 million	($1.23)	-0.57
Roche	$68.73 billion	3.84	$9.40 billion	N/A	N/A

Roche has higher revenue and earnings than FibroGen.

Analyst Recommendations

This is a breakdown of current ratings and price targets for FibroGen and Roche, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FibroGen	0	1	1	0	2.50
Roche	2	2	1	2	2.43

FibroGen currently has a consensus price target of $10.00, suggesting a potential upside of 1,316.63%. Given FibroGen’s stronger consensus rating and higher probable upside, equities analysts clearly believe FibroGen is more favorable than Roche.

Insider & Institutional Ownership

72.7% of FibroGen shares are held by institutional investors. 2.0% of FibroGen shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

FibroGen has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500. Comparatively, Roche has a beta of 0.42, meaning that its stock price is 58% less volatile than the S&P 500.

Profitability

This table compares FibroGen and Roche’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FibroGen	-67.66%	N/A	-36.17%
Roche	N/A	N/A	N/A

Summary

Roche beats FibroGen on 6 of the 11 factors compared between the two stocks.

About FibroGen

FibroGen, Inc., a biopharmaceutical company, discovers, develops, and commercializes therapeutics to treat serious unmet medical needs. Its lead product candidates are Pamrevlumab, a human monoclonal antibody targeting connective tissue growth factor that is in Phase III clinical development for the treatment of locally advanced pancreatic cancer; and Roxadustat, an oral small molecule inhibitor of hypoxia-inducible factor prolyl hydroxylase activity, which has completed Phase III clinical development for the treatment of anemia in chronic kidney disease in China, Europe, Japan, and other countries, as well as in Phase III clinical development for anemia related with myelodysplastic syndromes. The company has collaboration agreements with Astellas Pharma Inc. and AstraZeneca AB. FibroGen, Inc. was incorporated in 1993 and is headquartered in San Francisco, California.

About Roche

Roche Holding AG engages in the pharmaceuticals and diagnostics businesses in Europe, North America, Latin America, Asia, Africa, Australia, and Oceania. The company offers pharmaceutical products in the therapeutic areas of anemia, blood and solid tumors, dermatology, hemophilia, inflammatory and autoimmune, neurological disorders, ophthalmology, respiratory disorders, and transplantation. It is also developing products for various therapeutic areas. In addition, it offers in vitro tests for the diagnosis of various diseases, such as cancer, diabetes, Covid-19, hepatitis, human papillomavirus, and other diseases; diagnostic instruments; and digital health solutions. Roche Holding AG was founded in 1896 and is based in Basel, Switzerland.