Amneal Pharmaceuticals (NYSE:AMRX) and Catalyst Pharmaceuticals (NASDAQ:CPRX) are both small-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, profitability, institutional ownership, analyst recommendations, valuation, dividends and risk.
Profitability
This table compares Amneal Pharmaceuticals and Catalyst Pharmaceuticals' 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% |
| Catalyst Pharmaceuticals | 60.48% | 35.04% | 29.73% |
Analyst Ratings
This is a breakdown of recent ratings and price targets for Amneal Pharmaceuticals and Catalyst Pharmaceuticals, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Amneal Pharmaceuticals | 0 | 1 | 5 | 0 | 2.83 |
| Catalyst Pharmaceuticals | 0 | 0 | 4 | 0 | 3.00 |
Amneal Pharmaceuticals currently has a consensus price target of $7.00, suggesting a potential upside of 18.85%. Catalyst Pharmaceuticals has a consensus price target of $7.6250, suggesting a potential upside of 71.73%. Given Catalyst Pharmaceuticals' stronger consensus rating and higher possible upside, analysts plainly believe Catalyst Pharmaceuticals is more favorable than Amneal Pharmaceuticals.
Valuation & Earnings
This table compares Amneal Pharmaceuticals and Catalyst Pharmaceuticals' revenue, earnings per share 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 |
| Catalyst Pharmaceuticals | $102.31 million | 4.51 | $31.88 million | $0.30 | 14.80 |
Catalyst Pharmaceuticals has lower revenue, but higher earnings than Amneal Pharmaceuticals. Catalyst Pharmaceuticals is trading at a lower price-to-earnings ratio than Amneal Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
33.5% of Amneal Pharmaceuticals shares are held by institutional investors. Comparatively, 64.9% of Catalyst Pharmaceuticals shares are held by institutional investors. 26.3% of Amneal Pharmaceuticals shares are held by company insiders. Comparatively, 11.7% of Catalyst Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Volatility and Risk
Amneal Pharmaceuticals has a beta of 1.27, suggesting that its stock price is 27% more volatile than the S&P 500. Comparatively, Catalyst Pharmaceuticals has a beta of 1.53, suggesting that its stock price is 53% more volatile than the S&P 500.
Summary
Catalyst Pharmaceuticals beats Amneal Pharmaceuticals on 9 of the 14 factors compared between the two stocks.
