VBI Vaccines Inc. (NASDAQ:VBIV) shares are down more than -65.31% this year and recently increased 0.84% or $0.01 to settle at $0.56. TIM Participacoes S.A. (NYSE:TSU), on the other hand, is up 4.29% year to date as of 11/08/2019. It currently trades at $15.38 and has returned 7.70% during the past week.

VBI Vaccines Inc. (NASDAQ:VBIV) and TIM Participacoes S.A. (NYSE:TSU) are the two most active stocks in the Biotechnology industry based on todays trading volumes. We will compare the two companies based on the strength of various metrics, including growth, profitability, risk, return, and valuation to determine if one is a better investment than the other.

One of the key things investors look for in a company is the ability to grow earnings at a high compound rate over time. Comparatively, TSU is expected to grow at a 5.90% annual rate. All else equal, TSUs higher growth rate would imply a greater potential for capital appreciation.

Growth isnt very attractive to investors if companies are sacrificing profitability and shareholder returns to achieve that growth. We will use EBITDA margin and Return on Investment (ROI), which control for differences in capital structure between the two companies, to measure profitability and return. EBITDA margin of 11.13% for TIM Participacoes S.A. (TSU).

Cash is king when it comes to investing. VBIVs free cash flow (FCF) per share for the trailing twelve months was -0.14. Comparatively, TSUs free cash flow per share was +0.46. On a percent-of-sales basis, VBIVs free cash flow was -0.74% while TSU converted 4.79% of its revenues into cash flow. This means that, for a given level of sales, TSU is able to generate more free cash flow for investors.

VBIV trades at a P/B of 0.71, and a P/S of 25.09, compared to a forward P/E of 17.58, a P/B of 1.40, and a P/S of 1.76 for TSU. Given that earnings are what matter most to investors, analysts tend to place a greater weight on the P/E.

Analyst Price Targets and Opinions

When investing its crucial to distinguish between price and value. As Warren Buffet said, price is what you pay, value is what you get. VBIV is currently priced at a -93.21% to its one-year price target of 8.25. Comparatively, TSU is -13.89% relative to its price target of 17.86. This suggests that VBIV is the better investment over the next year.

Insider Activity and Investor Sentiment

Comparing the number of shares sold short to the float is a method analysts often use to get a reading on investor sentiment. VBIV has a short ratio of 2.09 compared to a short interest of 4.29 for TSU. This implies that the market is currently less bearish on the outlook for VBIV.

TIM Participacoes S.A. (NYSE:TSU) beats VBI Vaccines Inc. (NASDAQ:VBIV) on a total of 7 of the 14 factors compared between the two stocks. TSU has lower financial risk, is more profitable, generates a higher return on investment, has higher cash flow per share, has a higher cash conversion rate and higher liquidity.

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VBI Vaccines Inc. (VBIV) vs. TIM Participacoes S.A. (TSU): Comparing the Biotechnology Industrys Most Active Stocks - E Globalist