Financial Review: Prestige Consumer Healthcare (NYSE:PBH) and RYTHM (NASDAQ:RYM)

RYTHM (NASDAQ:RYM) and Prestige Consumer Healthcare (NYSE:PBH) are both healthcare companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, dividends, valuation, analyst recommendations, earnings, profitability and institutional ownership.

Institutional & Insider Ownership

6.0% of RYTHM shares are owned by institutional investors. Comparatively, 100.0% of Prestige Consumer Healthcare shares are owned by institutional investors. 3.5% of RYTHM shares are owned by insiders. Comparatively, 1.5% of Prestige Consumer Healthcare shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

RYTHM has a beta of 9.46, indicating that its stock price is 846% more volatile than the S&P 500. Comparatively, Prestige Consumer Healthcare has a beta of 0.34, indicating that its stock price is 66% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for RYTHM and Prestige Consumer Healthcare, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RYTHM	1	0	0	0	1.00
Prestige Consumer Healthcare	1	2	1	1	2.40

Prestige Consumer Healthcare has a consensus target price of $67.67, suggesting a potential upside of 40.18%. Given Prestige Consumer Healthcare’s stronger consensus rating and higher probable upside, analysts clearly believe Prestige Consumer Healthcare is more favorable than RYTHM.

Profitability

This table compares RYTHM and Prestige Consumer Healthcare’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RYTHM	-6.20%	-12.57%	-2.60%
Prestige Consumer Healthcare	15.57%	11.39%	5.66%

Earnings & Valuation

This table compares RYTHM and Prestige Consumer Healthcare”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RYTHM	$17.28 million	2.41	-$33.26 million	($10.53)	-1.81
Prestige Consumer Healthcare	$1.09 billion	2.10	$190.30 million	$3.57	13.52

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

Summary

Prestige Consumer Healthcare beats RYTHM on 12 of the 15 factors compared between the two stocks.

About RYTHM

Agrify Corporation develops precision hardware and software cultivation and extraction solutions for the cannabis and hemp industry in the United States. The company offers vertical farming units and Agrify Insights Software-as-a-Service software; integrated grow racks and LED grow lights; and non-proprietary products designed, engineered, and manufactured by third parties, such as air cleaning systems and pesticide-free surface protection products. It also provides associated services comprising consulting, engineering, and construction. The company was formerly known as Agrinamics, Inc. and changed its name to Agrify Corporation in September 2019. Agrify Corporation was incorporated in 2016 and is headquartered in Billerica, Massachusetts.

About Prestige Consumer Healthcare

Prestige Consumer Healthcare Inc., together with its subsidiaries, develops, manufactures, markets, distributes, and sells over-the-counter (OTC) health and personal care products in the United States and internationally. The company operates in two segments, North American OTC Healthcare and International OTC Healthcare. It offers BC/Goody's analgesic powders, Boudreaux's Butt Paste baby ointments, Chloraseptic sore throat liquids and lozenges, Clear Eyes for eye redness relief, Compound W wart removals, DenTek for PEG oral care, Debrox ear wax removals, and Dramamine for motion sickness relief. The company also provides Fleet adult enemas/suppositories, Gaviscon upset stomach remedies, Luden's cough drops, Monistat vaginal anti-fungal, Nix lice/parasite treatments, Summer's Eve feminine hygiene, TheraTears dry eye relief, Fess nasal saline spray and washes, and Hydralyte for oral rehydration products. It sells its products through mass merchandisers; and drug, food, dollar, convenience, and club stores, as well as e-commerce channels. The company was formerly known as Prestige Brands Holdings, Inc. and changed its name to Prestige Consumer Healthcare Inc. in August 2018. Prestige Consumer Healthcare Inc. was founded in 1996 and is headquartered in Tarrytown, New York.