Analyzing Endo International (ENDP) and Alexza Pharmaceuticals (ALXA)

Endo International (NASDAQ: ENDP) and Alexza Pharmaceuticals (OTCMKTS:ALXA) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, valuation, risk, institutional ownership, dividends and analyst recommendations.

Profitability

This table compares Endo International and Alexza Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Endo International -126.97% 66.98% 8.38%
Alexza Pharmaceuticals -466.94% N/A -106.54%

Insider and Institutional Ownership

93.2% of Endo International shares are held by institutional investors. 0.5% of Endo International shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Endo International and Alexza Pharmaceuticals’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Endo International $4.01 billion 0.44 -$3.35 billion ($22.45) -0.35
Alexza Pharmaceuticals N/A N/A N/A ($1.22) N/A

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

Analyst Recommendations

This is a summary of recent ratings for Endo International and Alexza Pharmaceuticals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Endo International 1 15 4 0 2.15
Alexza Pharmaceuticals 0 0 0 0 N/A

Endo International presently has a consensus target price of $11.59, suggesting a potential upside of 47.13%.

Summary

Endo International beats Alexza Pharmaceuticals on 7 of the 8 factors compared between the two stocks.

Endo International Company Profile

Endo International PLC, formerly Endo Health Solutions Inc. is a specialty healthcare solutions company focused on branded and generic pharmaceuticals, devices and services. The Company has a portfolio of branded pharmaceuticals that includes brands, such as Lidoderm, Opana ER, Voltaren Gel, Percocet, Frova, Supprelin LA, Vantas, Valstar and Fortesta Gel. The Company operates in three segments: Endo Pharmaceuticals, Qualitest and AMS. In June 2014, the Company’s subsidiary, Endo Pharmaceuticals sold its pharmaceutical drug discovery platform to AsanaBioSciences, LLC. In June 2014, Asana BioSciences, LLC, an independent member of Amneal Alliance of Companies, acquired early-stage branded pharmaceutical discovery platform of Endo Pharmaceuticals, a subsidiary of Endo International plc. In June 2014, Trendlines Group acquired intellectual property developed within the framework of an R&D agreement with the Company. In July 2014, it acquired Grupo Farmaceutico Somar.

Alexza Pharmaceuticals Company Profile

Alexza Pharmaceuticals, Inc. is a pharmaceutical company focused on the research, development and commercialization of products for the acute treatment of central nervous system conditions. The Company’s product candidates are based on the Staccato system technology. Its product candidates in development include AZ-002, which contains alprazolam as an active pharmaceutical ingredient (API) is developed for the management of patients with acute repetitive seizures, and AZ-007, which contains zaleplon as API is developed for the treatment of insomnia in patients who have difficulty falling asleep, including those patients with middle of the night awakening having difficulty falling back asleep. Its product also includes ADASUVE, which contains loxapine as API is developed for the treatment of agitation associated with schizophrenia or bipolar disorder. It has initiated a Phase IIa proof-of-concept study for AZ-002 in patients with epilepsy and has completed Phase I testing for AZ-007.

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