Amneal Pharmaceuticals (NYSE:AMRX) and Selecta Biosciences (NASDAQ:SELB) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.
Insider & Institutional Ownership
33.5% of Amneal Pharmaceuticals shares are owned by institutional investors. Comparatively, 56.9% of Selecta Biosciences shares are owned by institutional investors. 26.3% of Amneal Pharmaceuticals shares are owned by company insiders. Comparatively, 22.4% of Selecta Biosciences shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Amneal Pharmaceuticals and Selecta Biosciences' top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Amneal Pharmaceuticals | $1.63 billion | 1.08 | $-361,920,000.00 | $0.27 | 21.74 |
Selecta Biosciences | $6.68 million | 65.10 | $-55,350,000.00 | ($1.22) | -3.17 |
Selecta Biosciences has lower revenue, but higher earnings than Amneal Pharmaceuticals. Selecta Biosciences is trading at a lower price-to-earnings ratio than Amneal Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Amneal Pharmaceuticals has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500. Comparatively, Selecta Biosciences has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500.
Profitability
This table compares Amneal Pharmaceuticals and Selecta Biosciences' 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% |
Selecta Biosciences | N/A | N/A | -54.69% |
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Amneal Pharmaceuticals and Selecta Biosciences, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Amneal Pharmaceuticals | 0 | 2 | 5 | 0 | 2.71 |
Selecta Biosciences | 0 | 1 | 6 | 0 | 2.86 |
Amneal Pharmaceuticals currently has a consensus price target of $6.5714, indicating a potential upside of 11.95%. Selecta Biosciences has a consensus price target of $7.20, indicating a potential upside of 86.05%. Given Selecta Biosciences' stronger consensus rating and higher possible upside, analysts plainly believe Selecta Biosciences is more favorable than Amneal Pharmaceuticals.
Summary
Amneal Pharmaceuticals beats Selecta Biosciences on 8 of the 14 factors compared between the two stocks.