Summit Therapeutics (NASDAQ:SMMT) and Amneal Pharmaceuticals (NYSE:AMRX) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, institutional ownership, risk, dividends, earnings and profitability.
Earnings and Valuation
This table compares Summit Therapeutics and Amneal Pharmaceuticals' gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Summit Therapeutics | $56.50 million | 7.87 | $9.99 million | N/A | N/A |
| Amneal Pharmaceuticals | $1.63 billion | 1.09 | $-361,920,000.00 | $0.27 | 21.81 |
Summit Therapeutics has higher earnings, but lower revenue than Amneal Pharmaceuticals.
Volatility & Risk
Summit Therapeutics has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500. Comparatively, Amneal Pharmaceuticals has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500.
Profitability
This table compares Summit Therapeutics and Amneal Pharmaceuticals' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Summit Therapeutics | -933.62% | -100.94% | -71.52% |
| Amneal Pharmaceuticals | 3.30% | 42.02% | 3.82% |
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Summit Therapeutics and Amneal Pharmaceuticals, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Summit Therapeutics | 0 | 1 | 0 | 0 | 2.00 |
| Amneal Pharmaceuticals | 0 | 1 | 5 | 0 | 2.83 |
Summit Therapeutics presently has a consensus target price of $4.00, indicating a potential downside of 25.37%. Amneal Pharmaceuticals has a consensus target price of $7.00, indicating a potential upside of 18.85%. Given Amneal Pharmaceuticals' stronger consensus rating and higher probable upside, analysts plainly believe Amneal Pharmaceuticals is more favorable than Summit Therapeutics.
Institutional & Insider Ownership
9.5% of Summit Therapeutics shares are held by institutional investors. Comparatively, 33.5% of Amneal Pharmaceuticals shares are held by institutional investors. 26.3% of Amneal Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Summary
Amneal Pharmaceuticals beats Summit Therapeutics on 10 of the 12 factors compared between the two stocks.
