Head to Head Analysis: Lipocine (NASDAQ:LPCN) versus Astellas Pharma (OTCMKTS:ALPMY)

Astellas Pharma (OTCMKTS:ALPMY) and Lipocine (NASDAQ:LPCN) are both medical companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, analyst recommendations, profitability and institutional ownership.

Volatility and Risk

Astellas Pharma has a beta of 0.19, indicating that its share price is 81% less volatile than the S&P 500. Comparatively, Lipocine has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500.

Earnings & Valuation

This table compares Astellas Pharma and Lipocine”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Astellas Pharma	$12.56 billion	N/A	$334.93 million	$0.47	28.89
Lipocine	$11.20 million	1.56	$10,000.00	($1.02)	-3.09

Astellas Pharma has higher revenue and earnings than Lipocine. Lipocine is trading at a lower price-to-earnings ratio than Astellas Pharma, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and price targets for Astellas Pharma and Lipocine, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Astellas Pharma	0	2	0	0	2.00
Lipocine	1	0	1	1	2.67

Lipocine has a consensus target price of $7.00, indicating a potential upside of 122.22%. Given Lipocine’s stronger consensus rating and higher probable upside, analysts plainly believe Lipocine is more favorable than Astellas Pharma.

Profitability

This table compares Astellas Pharma and Lipocine’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Astellas Pharma	6.39%	22.21%	9.98%
Lipocine	-126.67%	-30.65%	-28.20%

Institutional & Insider Ownership

9.1% of Lipocine shares are held by institutional investors. 6.4% of Lipocine shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

About Astellas Pharma

Astellas Pharma Inc. manufactures, markets, and imports and exports pharmaceuticals in Japan and internationally. The company provides XTANDI, a treatment for prostate cancer; XOSPATA, a treatment for patients who have relapsed or refractory acute myeloid leukemia with a FLT3 mutation; and PADCEV, a treatment for patients with metastatic urothelial cancer. It also offers Evrenzo, a treatment for anemia associated with chronic kidney disease; Betanis/Myrabetriq/BETMIGA, a treatment for overactive bladder; and Prograf and Advagraf/Graceptor/ASTAGRAF XL immunosuppressants. Th company has a research collaboration with Vivtex Corporation to evaluate Vivtex’s GI-ORIS screening and formulation platform technology to support the development of novel and oral versions of a therapeutic candidate provided by Astellas; and a partnership agreement with Roche Diabetes Care Japan Co., Ltd. to develop and commercialize integrated diabetes self-management solution. The company was founded in 1923 and is headquartered in Tokyo, Japan.

About Lipocine

Lipocine Inc., a clinical-stage biopharmaceutical company, engages in the research and development for the delivery of drugs for the treatment of central nervous system (CNS) disorders. Its lead product candidate is TLANDO, an oral testosterone replacement therapy (TRT) comprising testosterone undecanoate. The company's pipeline candidates also include TLANDO XR a candidate for oral TRT for once daily dosing, which has completed Phase 2b clinical study; LPCN 1148, an oral prodrug of bioidentical testosterone, being developed for the treatment of cirrhosis, currently under Phase 2 clinical studies; LPCN 1154, An oral neurosteroid, being developed for the treatment of postpartum depression, currently under Phase 2 studies; LPCN 2101, a NAS candidate, for women with epilepsy; and LPCN 2203 for essential tremor. It is also involved in the development of LPCN 1144, an oral prodrug of bioidentical testosterone for the treatment of pre-cirrhotic non-alcoholic steatohepatitis, which has completed Phase 2 testing; and LPCN 1107, an oral product candidate of 17-alpha-hydroxy progesterone caproate product, currently under Phase 3 studies for the prevention of recurrent preterm birth. The company was founded in 1997 and is headquartered in Salt Lake City, Utah.