Analyzing Akorn (AKRX) and Platinex (PTX)

Akorn (NASDAQ: AKRX) and Platinex (NASDAQ:PTX) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, profitability, institutional ownership, analyst recommendations, valuation, dividends and risk.

Profitability

This table compares Akorn and Platinex’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Akorn 7.79% 15.14% 6.51%
Platinex -62.99% N/A -34.25%

Earnings and Valuation

This table compares Akorn and Platinex’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Akorn $1.12 billion 3.72 $184.24 million $0.99 33.55
Platinex N/A N/A N/A C($13.62) -0.22

Akorn has higher revenue and earnings than Platinex. Platinex is trading at a lower price-to-earnings ratio than Akorn, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Akorn has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500. Comparatively, Platinex has a beta of 1.69, suggesting that its stock price is 69% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Akorn and Platinex, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Akorn 1 8 1 0 2.00
Platinex 0 0 0 0 N/A

Akorn currently has a consensus price target of $30.14, suggesting a potential downside of 9.24%. Given Akorn’s higher possible upside, equities analysts plainly believe Akorn is more favorable than Platinex.

Institutional & Insider Ownership

68.7% of Akorn shares are owned by institutional investors. 28.2% of Akorn shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Akorn beats Platinex on 9 of the 10 factors compared between the two stocks.

About Akorn

Akorn Inc. (Akorn), together with its subsidiaries, is a specialty generic pharmaceutical company that develops, manufactures and markets generic and branded prescription pharmaceuticals, as well as private-label over-the-counter (OTC) consumer health products and animal health pharmaceuticals. The Company operates through two segments: Prescription Pharmaceuticals and the Consumer Health. The Prescription Pharmaceuticals segment consists of generic and branded prescription pharmaceuticals in a range of dosage forms, including sterile ophthalmics, injectables and inhalants and non-sterile oral liquids, topicals and nasal sprays and otics. The Consumer Health segment consists of branded and private-label OTC products and animal health products dispensed by veterinary professionals. Its branded and private-label OTC products are focused on ophthalmics, including a dry eye treatment TheraTears Therapy for Your Eyes.

About Platinex

Pernix Therapeutics Holdings, Inc. is a specialty pharmaceutical company. The Company focuses on identifying, developing and commercializing differentiated products that address unmet medical needs. It focuses on underserved therapeutic areas, such as central nervous system (CNS), including neurology and psychiatry, as well as other specialty therapeutic areas. Its products include Treximet, indicated for acute migraine; Zohydro ER with BeadTek, an extended-release opioid agonist indicated for the management of pain severe; Silenor for the treatment of insomnia characterized by difficulty with sleep maintenance, and Khedezla for major depressive disorder. It promotes selected non-core branded products, such as its cough and cold products, through co-promotion arrangements with third-party sales organizations, and distributes its generic products through its subsidiaries, Macoven Pharmaceuticals, LLC (Macoven) and Cypress Pharmaceuticals, Inc.

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