Aralez Pharmaceuticals (NASDAQ: ARLZ) and Akorn (NASDAQ:AKRX) are both medical companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, risk, valuation, institutional ownership, earnings, analyst recommendations and profitability.
Institutional and Insider Ownership
17.9% of Aralez Pharmaceuticals shares are owned by institutional investors. Comparatively, 77.4% of Akorn shares are owned by institutional investors. 6.7% of Aralez Pharmaceuticals shares are owned by company insiders. Comparatively, 28.2% of Akorn 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.
This table compares Aralez Pharmaceuticals and Akorn’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares Aralez Pharmaceuticals and Akorn’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Aralez Pharmaceuticals||$105.95 million||1.16||-$125.20 million||($1.89)||-0.97|
|Akorn||$841.04 million||2.80||-$24.55 million||$0.99||18.97|
Akorn has higher revenue and earnings than Aralez Pharmaceuticals. Aralez Pharmaceuticals is trading at a lower price-to-earnings ratio than Akorn, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and recommmendations for Aralez Pharmaceuticals and Akorn, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Aralez Pharmaceuticals presently has a consensus target price of $5.00, indicating a potential upside of 173.22%. Akorn has a consensus target price of $34.00, indicating a potential upside of 81.04%. Given Aralez Pharmaceuticals’ stronger consensus rating and higher probable upside, equities analysts clearly believe Aralez Pharmaceuticals is more favorable than Akorn.
Risk & Volatility
Aralez Pharmaceuticals has a beta of 1.41, meaning that its share price is 41% more volatile than the S&P 500. Comparatively, Akorn has a beta of 1.78, meaning that its share price is 78% more volatile than the S&P 500.
Akorn beats Aralez Pharmaceuticals on 11 of the 14 factors compared between the two stocks.
Aralez Pharmaceuticals Company Profile
Aralez Pharmaceuticals Inc. operates as a specialty pharmaceutical company in the United States and Canada. It engages in acquiring, developing, and commercializing products primarily in cardiovascular disease, pain, and other specialty areas. It offers Yosprala for patients who require aspirin for secondary prevention of cardiovascular and cerebrovascular events; Toprol-XL, a cardioselective beta-blocker indicated for the treatment of hypertension; Fibricor, a fenofibric acid for the treatment of severe hypertriglyceridemia; Zontivity for the reduction of thrombotic cardiovascular events in patients; Cambia, a non-steroidal anti-inflammatory drug (NSAID) for the acute treatment of migraine attacks; Fiorinal and Fiorinal C for the relief of tension type headaches; and Soriatane for the treatment of severe psoriasis and other disorders of keratinization. It also markets Bezalip SR, a pan-peroxisome proliferator-activated receptor activator to treat hyperlipidemia, as well as to increase insulin sensitivity and decrease blood glucose levels for the patients with metabolic syndrome; Proferrin, an iron supplement; and Blexten, an antihistamine drug for the symptomatic relief of allergic rhinitis and chronic spontaneous urticaria. In addition, it commercializes Yosprala for the secondary prevention of cardiovascular disease in patients at risk for gastric ulcers. Further, its out-licensed products include VIMOVO for the relief of the signs and symptoms of osteoarthritis, rheumatoid arthritis, and ankylosing spondylitis, as well as to decrease the risk of developing gastric ulcers in patients at risk of developing NSAID-associated gastric ulcers; and Treximet, a migraine medicine. The company was incorporated in 2015 and is headquartered in Mississauga, Canada.
Akorn Company Profile
Akorn Inc. (Akorn), together with its subsidiaries, is a specialty generic pharmaceutical company that develops, manufactures and markets generic and branded prescription pharmaceuticals, as well as private-label over-the-counter (OTC) consumer health products and animal health pharmaceuticals. The Company operates through two segments: Prescription Pharmaceuticals and the Consumer Health. The Prescription Pharmaceuticals segment consists of generic and branded prescription pharmaceuticals in a range of dosage forms, including sterile ophthalmics, injectables and inhalants and non-sterile oral liquids, topicals and nasal sprays and otics. The Consumer Health segment consists of branded and private-label OTC products and animal health products dispensed by veterinary professionals. Its branded and private-label OTC products are focused on ophthalmics, including a dry eye treatment TheraTears Therapy for Your Eyes.
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