Financial Comparison: Hengan International Group (OTCMKTS:HEGIY) and Recordati Industria Chimica e Farmaceutica (OTCMKTS:RCDTF)

Recordati Industria Chimica e Farmaceutica (OTCMKTS:RCDTF) and Hengan International Group (OTCMKTS:HEGIY) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, valuation, risk, institutional ownership, earnings, analyst recommendations and dividends.

Earnings and Valuation

This table compares Recordati Industria Chimica e Farmaceutica and Hengan International Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Recordati Industria Chimica e Farmaceutica	$2.25 billion	5.08	$421.25 million	$2.00	27.77
Hengan International Group	$3.36 billion	0.98	$395.71 million	N/A	N/A

Recordati Industria Chimica e Farmaceutica has higher earnings, but lower revenue than Hengan International Group.

Volatility & Risk

Recordati Industria Chimica e Farmaceutica has a beta of 0.3, meaning that its share price is 70% less volatile than the S&P 500. Comparatively, Hengan International Group has a beta of 0.17, meaning that its share price is 83% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Recordati Industria Chimica e Farmaceutica and Hengan International Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Recordati Industria Chimica e Farmaceutica	1	1	0	0	1.50
Hengan International Group	0	0	0	0	0.00

Profitability

This table compares Recordati Industria Chimica e Farmaceutica and Hengan International Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Recordati Industria Chimica e Farmaceutica	17.41%	30.78%	12.65%
Hengan International Group	N/A	N/A	N/A

Institutional & Insider Ownership

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

Summary

Recordati Industria Chimica e Farmaceutica beats Hengan International Group on 7 of the 9 factors compared between the two stocks.

About Recordati Industria Chimica e Farmaceutica

Recordati Industria Chimica e Farmaceutica S.p.A., together with its subsidiaries, engages in the research, development, manufacture, and marketing of pharmaceuticals worldwide. The company operates through Specialty and Primary Care and Rare Diseases segments. Its product pipeline includes REC 0559 which is in Phase II for the treatment of Neurotrophic Keratitis; REC 0545 for acute decompensation in maple syrup urine diseases; ISTURISA for endogenous Cushing's syndrome; and CYSTADROPS, an corneal cystine deposits in patients with cystinosis. The company also develops CARBAGLU for hyperammonemia due to NAGS deficiency; QARZIBA, an apeiron for the treatment of high-risk neuroblastoma patients with a partial response at the chemotherapeutical through myeloablative therapy and stem cell transplantation, and relapsed or refractory neuroblastoma. In addition, it offers SYLVANT for the treatment of idiopathic multicentric Castleman diseases; REAGILA for Schizophrenia; and ELIGARD for hormone-dependent prostate cancer, as well as CAPHOSOL, a medical device for treatment of oral mucositis due to chemo and radiation therapy. The company was founded in 1926 and is headquartered in Milan, Italy. Recordati Industria Chimica e Farmaceutica S.p.A. operates as a subsidiary of Rossini S.à R.L.

About Hengan International Group

Hengan International Group Company Limited, an investment holding company, manufactures, distributes, and sells personal hygiene products in the People's Republic of China and internationally. The company offers pocket handkerchiefs, box and soft tissue papers, kitchen towels/papers, toilet rolls, first-aid products, enema, garbage and food bags, preservation papers, table cloths and disposable toilet brush, sanitary napkins, pantiliners, overnight pants, wet tissues, maternal and child care products, adult and baby diapers, and cleansing products. It is also involved in the trading of various products for ladies, pregnant women, infants, and kids, as well as disposable fiber-based products; and engages in the ecommerce business. In addition, the company manufactures and distributes heat and power; and manufactures, distributes, and sells gas, protective equipment, medical instrument, skin care products, antiseptics, and household products. Hengan International Group Company Limited was founded in 1985 and is headquartered in Jinjiang, the People's Republic of China.