Perrigo (NYSE:PRGO – Get Free Report) and TherapeuticsMD (NASDAQ:TXMD – Get Free Report) are both small-cap healthcare companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, valuation, analyst recommendations, institutional ownership and dividends.
Analyst Ratings
This is a summary of current recommendations for Perrigo and TherapeuticsMD, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Perrigo | 1 | 4 | 1 | 0 | 2.00 |
| TherapeuticsMD | 1 | 0 | 0 | 0 | 1.00 |
Perrigo presently has a consensus price target of $19.33, suggesting a potential upside of 41.50%. Given Perrigo’s stronger consensus rating and higher possible upside, analysts clearly believe Perrigo is more favorable than TherapeuticsMD.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Perrigo | $4.25 billion | 0.45 | -$1.43 billion | ($12.51) | -1.09 |
| TherapeuticsMD | $3.02 million | 8.28 | -$570,000.00 | $0.02 | 108.00 |
TherapeuticsMD has lower revenue, but higher earnings than Perrigo. Perrigo is trading at a lower price-to-earnings ratio than TherapeuticsMD, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
95.9% of Perrigo shares are owned by institutional investors. Comparatively, 30.7% of TherapeuticsMD shares are owned by institutional investors. 0.4% of Perrigo shares are owned by company insiders. Comparatively, 1.7% of TherapeuticsMD shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Volatility & Risk
Perrigo has a beta of 0.59, suggesting that its share price is 41% less volatile than the S&P 500. Comparatively, TherapeuticsMD has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500.
Profitability
This table compares Perrigo and TherapeuticsMD’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Perrigo | -41.85% | 11.25% | 4.08% |
| TherapeuticsMD | -6.64% | -1.09% | -0.78% |
About Perrigo
Perrigo Company plc provides over-the-counter health and wellness solutions to enhance individual well-being in the United States, Europe, and internationally. It operates through Consumer Self-Care Americas and Consumer Self-Care International segments. The company develops, manufactures, markets, and distributes self-care consumer products, such as upper respiratory products, including cough suppressants, expectorants, and sinus and allergy relief; nutrition products consisting of infant formulas and nutritional beverages; digestive health products, including antacids, anti-diarrheal, and anti-heartburn; pain and sleep-aids products comprising pain relievers and fever reducers; and oral care products, which include toothbrushes, toothbrush replacement heads, floss, flossers, whitening products, and toothbrush covers. It also offers healthy lifestyle products, such as smoking cessation, well-being, and weight management products; skin care products consisting of dermatological care, scar management, lice treatment, and other products for various skin conditions; women's health products comprising feminine hygiene and contraceptives; vitamins, minerals, and supplements; rare diseases business; and other miscellaneous self-care products. The company sells its products under the Compeed, Dr. Fresh, Firefly, Good Sense, Good Start, Mederma, Nasonex, Plackers, Prevacid24HR, REACH, Rembrandt, Steripod, Opill, Solpadeine, Coldrex, Physiomer, NiQuitin, ACO, ellaOne, Compeed Stops, XLS, Arterin, Davitamon, Apiserum, Abtei, and Nicorette brands. It also offers contract manufacturing services. The company sells its products through retail drug, supermarket, and mass merchandise chains; e-commerce stores; wholesalers; pharmacies; drug and grocery retailers; and para-pharmacies. The company was formerly known as Perrigo Company and changed its name to Perrigo Company plc in December 2013. Perrigo Company plc was founded in 1887 and is headquartered in Dublin, Ireland.
About TherapeuticsMD
TherapeuticsMD, Inc. operates as a pharmaceutical royalty company in the United States. It has a license agreement with Mayne Pharma to commercialize the IMVEXXY, BIJUVA, and ANNOVERA prescription prenatal vitamin products sold under the BocaGreenMD and vitaMedMD brand names. The company sells its prescription pharmaceutical products and prenatal vitamin products through wholesale distributors and retail pharmacy distributors. TherapeuticsMD, Inc. was founded in 2008 and is headquartered in Boca Raton, Florida.
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