Amphastar Pharmaceuticals (NASDAQ:AMPH) and Apellis Pharmaceuticals (NASDAQ:APLS) are both medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, dividends, profitability, risk, earnings, analyst recommendations and institutional ownership.
Insider & Institutional Ownership
55.1% of Amphastar Pharmaceuticals shares are owned by institutional investors. Comparatively, 81.2% of Apellis Pharmaceuticals shares are owned by institutional investors. 29.8% of Amphastar Pharmaceuticals shares are owned by company insiders. Comparatively, 9.5% of Apellis Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Amphastar Pharmaceuticals and Apellis Pharmaceuticals, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Amphastar Pharmaceuticals | 0 | 3 | 1 | 0 | 2.25 |
Apellis Pharmaceuticals | 0 | 3 | 10 | 1 | 2.86 |
Amphastar Pharmaceuticals currently has a consensus target price of $21.6667, indicating a potential upside of 21.11%. Apellis Pharmaceuticals has a consensus target price of $124.6154, indicating a potential upside of 199.84%. Given Apellis Pharmaceuticals' stronger consensus rating and higher probable upside, analysts clearly believe Apellis Pharmaceuticals is more favorable than Amphastar Pharmaceuticals.
Profitability
This table compares Amphastar Pharmaceuticals and Apellis Pharmaceuticals' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Amphastar Pharmaceuticals | 1.97% | 5.50% | 4.04% |
Apellis Pharmaceuticals | N/A | -336.93% | -78.28% |
Valuation and Earnings
This table compares Amphastar Pharmaceuticals and Apellis Pharmaceuticals' gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Amphastar Pharmaceuticals | $322.36 million | 2.63 | $48.94 million | $0.36 | 49.69 |
Apellis Pharmaceuticals | N/A | N/A | $-304,710,000.00 | ($4.64) | -8.96 |
Amphastar Pharmaceuticals has higher revenue and earnings than Apellis Pharmaceuticals. Apellis Pharmaceuticals is trading at a lower price-to-earnings ratio than Amphastar Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Amphastar Pharmaceuticals has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500. Comparatively, Apellis Pharmaceuticals has a beta of 1.47, indicating that its stock price is 47% more volatile than the S&P 500.
Summary
Amphastar Pharmaceuticals beats Apellis Pharmaceuticals on 8 of the 14 factors compared between the two stocks.