Critical Review: Alnylam Pharmaceuticals (NASDAQ:ALNY) vs. Bausch Health Companies (NYSE:BHC)

Alnylam Pharmaceuticals (NASDAQ:ALNY) and Bausch Health Companies (NYSE:BHC) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, institutional ownership, risk, dividends, analyst recommendations and profitability.

Analyst Ratings

This is a breakdown of current recommendations for Alnylam Pharmaceuticals and Bausch Health Companies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alnylam Pharmaceuticals	1	4	20	0	2.76
Bausch Health Companies	1	6	0	0	1.86

Alnylam Pharmaceuticals presently has a consensus target price of $312.30, indicating a potential upside of 15.23%. Bausch Health Companies has a consensus target price of $7.42, indicating a potential upside of 9.97%. Given Alnylam Pharmaceuticals’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Alnylam Pharmaceuticals is more favorable than Bausch Health Companies.

Insider & Institutional Ownership

93.0% of Alnylam Pharmaceuticals shares are owned by institutional investors. Comparatively, 78.7% of Bausch Health Companies shares are owned by institutional investors. 1.5% of Alnylam Pharmaceuticals shares are owned by company insiders. Comparatively, 8.1% of Bausch Health Companies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Alnylam Pharmaceuticals and Bausch Health Companies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alnylam Pharmaceuticals	-12.37%	N/A	-6.83%
Bausch Health Companies	-0.48%	-577.82%	5.24%

Earnings and Valuation

This table compares Alnylam Pharmaceuticals and Bausch Health Companies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alnylam Pharmaceuticals	$2.25 billion	15.61	-$278.16 million	($2.17)	-124.89
Bausch Health Companies	$9.63 billion	0.26	-$46.00 million	($0.12)	-56.20

Bausch Health Companies has higher revenue and earnings than Alnylam Pharmaceuticals. Alnylam Pharmaceuticals 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.

Risk and Volatility

Alnylam Pharmaceuticals has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500. Comparatively, Bausch Health Companies has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500.

Summary

Bausch Health Companies beats Alnylam Pharmaceuticals on 8 of the 14 factors compared between the two stocks.

About Alnylam Pharmaceuticals

Alnylam Pharmaceuticals, Inc., a biopharmaceutical company, focuses on discovering, developing, and commercializing novel therapeutics based on ribonucleic acid interference. Its marketed products include ONPATTRO (patisiran) for the treatment of the polyneuropathy of hereditary transthyretin-mediated amyloidosis in adults; AMVUTTRA for the treatment of hATTR amyloidosis with polyneuropathy in adults; GIVLAARI for the treatment of adults with acute hepatic porphyria; and OXLUMO for the treatment of primary hyperoxaluria type 1. In addition, the company develops patisiran for the treatment of transthyretin amyloidosis, or ATTR amyloidosis, with cardiomyopathy; cemdisiran to treat complement-mediated diseases; Belcesiran for the treatment of alpha-1 liver disease; Elebsiran to treat chronic HBV infection; Zilebesiran to treat hypertension; ALN-APP to treat Alzheimer's disease and cerebral amyloid angiopathy; and ALN-HSD to treat NASH. Further, it offers Fitusiran for the treatment of hemophilia, Inclisiran to treat hypercholesterolemia, lumasiran for the treatment of advanced PH1, and vutrisiran for the treatment of ATTR amyloidosis, which is in phase 3 clinical trial. Alnylam Pharmaceuticals, Inc. has strategic collaborations with Regeneron Pharmaceuticals, Inc. to discover, develop, and commercialize RNAi therapeutics for a range of diseases by addressing therapeutic targets expressed in the eye and CNS; and Roche to develop pharmaceutical products containing zilebesiran. It also has license and collaboration agreements with Novartis AG; Vir Biotechnology, Inc.; Dicerna Pharmaceuticals, Inc.; Ionis Pharmaceuticals, Inc.; and PeptiDream, Inc. The company was founded in 2002 and is headquartered in Cambridge, Massachusetts.

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.