Amneal Pharmaceuticals (NYSE:AMRX) and CytomX Therapeutics (NASDAQ:CTMX) are both small-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, risk and profitability.
Profitability
This table compares Amneal Pharmaceuticals and CytomX Therapeutics' 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% |
| CytomX Therapeutics | -58.13% | -94.20% | -13.79% |
Volatility & Risk
Amneal Pharmaceuticals has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500. Comparatively, CytomX Therapeutics has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500.
Valuation and Earnings
This table compares Amneal Pharmaceuticals and CytomX Therapeutics' top-line 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 | 1.06 | $-361,920,000.00 | $0.27 | 21.37 |
| CytomX Therapeutics | $57.49 million | 7.60 | $-102,240,000.00 | ($2.26) | -2.98 |
CytomX Therapeutics has lower revenue, but higher earnings than Amneal Pharmaceuticals. CytomX Therapeutics 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, 77.9% of CytomX Therapeutics shares are held by institutional investors. 26.3% of Amneal Pharmaceuticals shares are held by insiders. Comparatively, 5.8% of CytomX Therapeutics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Analyst Ratings
This is a summary of current ratings and price targets for Amneal Pharmaceuticals and CytomX Therapeutics, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Amneal Pharmaceuticals | 0 | 2 | 5 | 0 | 2.71 |
| CytomX Therapeutics | 0 | 2 | 5 | 0 | 2.71 |
Amneal Pharmaceuticals currently has a consensus target price of $6.2143, suggesting a potential upside of 7.70%. CytomX Therapeutics has a consensus target price of $12.0714, suggesting a potential upside of 79.10%. Given CytomX Therapeutics' higher probable upside, analysts clearly believe CytomX Therapeutics is more favorable than Amneal Pharmaceuticals.
Summary
Amneal Pharmaceuticals beats CytomX Therapeutics on 8 of the 12 factors compared between the two stocks.
