Critical Analysis: Akorn (OTCMKTS:AKRXQ) versus AEON Biopharma (NASDAQ:AEON)

AEON Biopharma (NASDAQ:AEON) and Akorn (OTCMKTS:AKRXQ) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, valuation and analyst recommendations.

Valuation and Earnings

This table compares AEON Biopharma and Akorn”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AEON Biopharma	N/A	N/A	-$36.63 million	$5.04	0.15
Akorn	$682.43 million	0.01	-$226.77 million	N/A	N/A

AEON Biopharma has higher earnings, but lower revenue than Akorn.

Analyst Ratings

This is a summary of current ratings and recommmendations for AEON Biopharma and Akorn, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AEON Biopharma	0	1	1	1	3.00
Akorn	0	0	0	0	0.00

Insider & Institutional Ownership

22.8% of AEON Biopharma shares are owned by institutional investors. 0.9% of AEON Biopharma shares are owned by insiders. Comparatively, 3.9% of Akorn shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares AEON Biopharma and Akorn’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AEON Biopharma	N/A	N/A	-994.63%
Akorn	N/A	N/A	N/A

Summary

AEON Biopharma beats Akorn on 5 of the 8 factors compared between the two stocks.

About AEON Biopharma

AEON Biopharma, Inc., a clinical stage biopharmaceutical company, focuses on developing botulinum toxins. It develops ABP-450 (prabotulinumtoxinA) injection for debilitating medical conditions, which completed Phase 2 study for the treatment of cervical dystonia and has an ongoing Phase 2 study for the treatment of both chronic and episodic migraine, as well as develops ABP-450 for the treatment of gastroparesis and posttraumatic stress disorder. The company is based in Irvine, California.

About Akorn

Akorn, Inc., a specialty pharmaceutical company, develops, manufactures, and markets generic and branded prescription pharmaceuticals, over-the-counter (OTC) consumer health products, and animal health pharmaceuticals in the United States and internationally. The company operates in two segments, Prescription Pharmaceuticals and Consumer Health. The Prescription Pharmaceuticals segment offers generic and branded prescription pharmaceuticals in various dosage forms, including sterile ophthalmics, injectables, and inhalants; and non-sterile oral liquids, topicals, nasal sprays, and otics. Its primary products include Akten, a topical ocular anesthetic gel; AzaSite, an antibiotic used to treat bacterial conjunctivitis; Cosopt, Cosopt PF, Betimol, and Zioptan, which are used in the treatment of glaucoma; and Xopenex inhalation solution used in the treatment or prevention of bronchospasm. The Consumer Health segment manufactures and markets OTC products for the treatment of dry eye under the TheraTears brand. It also markets other OTC consumer health products comprising Mag-Ox, a magnesium supplement; and the Diabetic Tussin line of cough and cold products. In addition, this segment offers a portfolio of animal health products, such as Anased and VetaKet veterinary sedatives; Tolazine and Yobine sedative reversing agents; and Butorphic, a pain reliever. Further, the company sells its products to wholesale distributors. Akorn, Inc. was founded in 1971 and is headquartered in Lake Forest, Illinois. On May 20, 2020, Akorn, Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware.