Amneal Pharmaceuticals (NYSE:AMRX) and AquaBounty Technologies (NASDAQ:AQB) are both small-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, dividends and valuation.
Volatility and Risk
Amneal Pharmaceuticals has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500. Comparatively, AquaBounty Technologies has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500.
Profitability
This table compares Amneal Pharmaceuticals and AquaBounty Technologies' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Amneal Pharmaceuticals | 3.30% | 42.02% | 3.82% |
| AquaBounty Technologies | -11,050.81% | -36.77% | -30.50% |
Institutional & Insider Ownership
33.5% of Amneal Pharmaceuticals shares are held by institutional investors. Comparatively, 60.0% of AquaBounty Technologies shares are held by institutional investors. 26.3% of Amneal Pharmaceuticals shares are held by company insiders. Comparatively, 42.3% of AquaBounty Technologies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Amneal Pharmaceuticals and AquaBounty Technologies' gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Amneal Pharmaceuticals | $1.63 billion | 1.09 | $-361,920,000.00 | $0.27 | 21.81 |
| AquaBounty Technologies | $190,000.00 | 2,281.25 | $-13,230,000.00 | ($0.66) | -9.26 |
AquaBounty Technologies has lower revenue, but higher earnings than Amneal Pharmaceuticals. AquaBounty Technologies is trading at a lower price-to-earnings ratio than Amneal Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent recommendations for Amneal Pharmaceuticals and AquaBounty Technologies, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Amneal Pharmaceuticals | 0 | 2 | 5 | 0 | 2.71 |
| AquaBounty Technologies | 0 | 1 | 1 | 0 | 2.50 |
Amneal Pharmaceuticals presently has a consensus target price of $6.5714, indicating a potential upside of 11.95%. AquaBounty Technologies has a consensus target price of $5.8333, indicating a potential downside of 5.91%. Given Amneal Pharmaceuticals' stronger consensus rating and higher probable upside, analysts clearly believe Amneal Pharmaceuticals is more favorable than AquaBounty Technologies.
Summary
Amneal Pharmaceuticals beats AquaBounty Technologies on 9 of the 13 factors compared between the two stocks.
