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Analyzing Amneal Pharmaceuticals (NYSE:AMRX) and PLx Pharma (NASDAQ:PLXP)

Financial News Live ·  Apr 27, 2023 09:28

Amneal Pharmaceuticals (NYSE:AMRX – Get Rating) and PLx Pharma (NASDAQ:PLXP – Get Rating) are both small-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, earnings, profitability, valuation and institutional ownership.

Risk & Volatility

Amneal Pharmaceuticals has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500. Comparatively, PLx Pharma has a beta of 3.79, suggesting that its share price is 279% more volatile than the S&P 500.

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Analyst Recommendations

This is a breakdown of current recommendations and price targets for Amneal Pharmaceuticals and PLx Pharma, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Amneal Pharmaceuticals 0 1 3 0 2.75
PLx Pharma 0 2 0 0 2.00

Amneal Pharmaceuticals currently has a consensus price target of $3.75, suggesting a potential upside of 107.18%. Given Amneal Pharmaceuticals' stronger consensus rating and higher possible upside, research analysts clearly believe Amneal Pharmaceuticals is more favorable than PLx Pharma.

Profitability

This table compares Amneal Pharmaceuticals and PLx Pharma's net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Amneal Pharmaceuticals -5.88% 76.11% 4.68%
PLx Pharma -606.91% -291.11% -119.43%

Institutional and Insider Ownership

32.8% of Amneal Pharmaceuticals shares are owned by institutional investors. Comparatively, 21.2% of PLx Pharma shares are owned by institutional investors. 26.8% of Amneal Pharmaceuticals shares are owned by insiders. Comparatively, 9.0% of PLx Pharma shares are owned by 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 PLx Pharma's top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Amneal Pharmaceuticals $2.21 billion 0.25 -$129.99 million ($0.86) -2.10
PLx Pharma $4.54 million 0.09 -$46.13 million ($1.85) -0.01

PLx Pharma has lower revenue, but higher earnings than Amneal Pharmaceuticals. Amneal Pharmaceuticals is trading at a lower price-to-earnings ratio than PLx Pharma, indicating that it is currently the more affordable of the two stocks.

Summary

Amneal Pharmaceuticals beats PLx Pharma on 11 of the 14 factors compared between the two stocks.

About Amneal Pharmaceuticals

(Get Rating)

Amneal Pharmaceuticals, Inc. is a pharmaceutical company, which engages in the development, manufacture, market and distribution of generic pharmaceutical products. It operates through the Generic, Specialty and AvKARE Segments. The Generics segment develops, manufactures and commercializes complex oral solids, injectables, ophthalmics, liquids, topicals, softgels, inhalation products and transdermals. The Specialty segment provides proprietary medicines to the U.S. market. The AvKARE segment focuses on pharmaceuticals, medical and surgical products, and services primarily to governmental agencies. The company was founded by Chintu Patel and Chirag Patel in 2002 and is headquartered in Bridgewater, NJ.

About PLx Pharma

(Get Rating)

PLx Pharma, Inc. is a late-stage specialty pharmaceutical company, which engages in the development and commercialization of technology platform for approved drugs. It offers PLxGuard delivery system, which uses surface acting lipids, such as phospholipids and free fatty acids, to modify the physiochemical properties of various drugs with a targeted release to select portions of the gastrointestinal (GI) tract. The company was founded by Ronald R. Zimmerman on November 12, 2002 and is headquartered in Sparta, NJ.

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