TherapeuticsMD (NASDAQ:TXMD) and Amneal Pharmaceuticals (NYSE:AMRX) are both small-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, institutional ownership, valuation, risk and earnings.
Profitability
This table compares TherapeuticsMD and Amneal Pharmaceuticals' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| TherapeuticsMD | -327.98% | N/A | -78.47% |
| Amneal Pharmaceuticals | 3.30% | 42.02% | 3.82% |
Volatility & Risk
TherapeuticsMD has a beta of 2.19, suggesting that its stock price is 119% more volatile than the S&P 500. Comparatively, Amneal Pharmaceuticals has a beta of 1.27, suggesting that its stock price is 27% more volatile than the S&P 500.
Valuation and Earnings
This table compares TherapeuticsMD and Amneal Pharmaceuticals' top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| TherapeuticsMD | $49.65 million | 8.39 | $-176,150,000.00 | ($0.68) | -1.56 |
| Amneal Pharmaceuticals | $1.63 billion | 1.01 | $-361,920,000.00 | $0.27 | 20.30 |
TherapeuticsMD has higher earnings, but lower revenue than Amneal Pharmaceuticals. TherapeuticsMD 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 TherapeuticsMD and Amneal Pharmaceuticals, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| TherapeuticsMD | 1 | 1 | 3 | 0 | 2.40 |
| Amneal Pharmaceuticals | 0 | 1 | 4 | 0 | 2.80 |
TherapeuticsMD currently has a consensus target price of $5.0667, suggesting a potential upside of 377.99%. Amneal Pharmaceuticals has a consensus target price of $7.40, suggesting a potential upside of 35.04%. Given TherapeuticsMD's higher possible upside, equities research analysts plainly believe TherapeuticsMD is more favorable than Amneal Pharmaceuticals.
Insider and Institutional Ownership
52.6% of TherapeuticsMD shares are owned by institutional investors. Comparatively, 33.5% of Amneal Pharmaceuticals shares are owned by institutional investors. 13.8% of TherapeuticsMD shares are owned by insiders. Comparatively, 26.3% of Amneal Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
Amneal Pharmaceuticals beats TherapeuticsMD on 9 of the 14 factors compared between the two stocks.
