Critical Analysis: Sinopharm Group (OTCMKTS:SHTDY) versus Cosmos Health (NASDAQ:COSM)

Sinopharm Group (OTCMKTS:SHTDY) and Cosmos Health (NASDAQ:COSM) are both medical companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, earnings, profitability, analyst recommendations, risk and institutional ownership.

Earnings and Valuation

This table compares Sinopharm Group and Cosmos Health”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sinopharm Group	N/A	N/A	N/A	$4.99	2.59
Cosmos Health	$56.45 million	0.23	-$18.54 million	($2.26)	-0.34

Sinopharm Group has higher earnings, but lower revenue than Cosmos Health. Cosmos Health is trading at a lower price-to-earnings ratio than Sinopharm Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Sinopharm Group and Cosmos Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sinopharm Group	N/A	N/A	N/A
Cosmos Health	-38.19%	-5.83%	-3.29%

Insider and Institutional Ownership

12.6% of Cosmos Health shares are held by institutional investors. 18.7% of Cosmos Health shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and price targets for Sinopharm Group and Cosmos Health, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sinopharm Group	0	0	0	0	N/A
Cosmos Health	0	0	1	0	3.00

Summary

Sinopharm Group beats Cosmos Health on 5 of the 9 factors compared between the two stocks.

About Sinopharm Group

Sinopharm Group Co. Ltd., together with its subsidiaries, engages in the wholesale and retail of pharmaceutical and medical devices and healthcare products in the People’s Republic of China. The company operates through four segments: Pharmaceutical Distribution, Medical Devices, Retail Pharmacy, and Other Business. The Pharmaceutical Distribution segment distributes pharmaceutical products to hospitals, other distributors, retail pharmacy stores, and clinics. This segment also offers distribution, logistics, and other value-added services for domestic and international pharmaceutical and healthcare products manufacturers, and other suppliers. The Medical Devices segment distributes medical devices. The Retail Pharmacy segment operates and franchises a network of retail drug stores. The Other Business segment engages in the production and sale of pharmaceutical products, chemical reagents, and laboratory supplies. The company also rents and manages properties; distributes medical instruments, Chinese herbal medicines, antibiotics, and biological products; and offers information technology, investment, goods and technology import and export, business consulting, health consultation, medical consulting, market information consulting and investigation, and convention and exhibition services. In addition, it manages medical project investment, consulting, and technology training activities. The company was founded in 2003 and is headquartered in Shanghai, the People’s Republic of China. Sinopharm Group Co. Ltd. is a subsidiary of Sinopharm Industrial Investment Co., Ltd.

About Cosmos Health

Cosmos Health Inc. manufactures, develops, and trades branded nutraceutical products in Greece, the United Kingdom, Croatia, Bulgaria, Cayman Islands, and Cyprus. It offers medicines, OTC medicines, nutraceutical products, vitamins, minerals and dietary, health care products, medical devices, baby products, and others under the Sky Premium Life and Mediterranation brand names. The company serves wholesale distributors and other healthcare providers, such as clinics, government agencies, independent retail and specialty pharmacies and independent specialty distributors. It sells its products through independent wholesale distributors. Cosmos Health Inc. was incorporated in 2009 and is headquartered in Chicago, Illinois.