Head to Head Review: Lannett (LCI) & Opko Health (NASDAQ:OPK)

Opko Health (NASDAQ: OPK) and Lannett (NYSE:LCI) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, dividends, valuation and profitability.

Insider & Institutional Ownership

22.9% of Opko Health shares are owned by institutional investors. Comparatively, 97.3% of Lannett shares are owned by institutional investors. 40.2% of Opko Health shares are owned by company insiders. Comparatively, 14.7% of Lannett shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Opko Health and Lannett’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Opko Health -9.45% -5.17% -3.94%
Lannett 6.67% 18.23% 6.16%

Valuation and Earnings

This table compares Opko Health and Lannett’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Opko Health $1.22 billion 2.34 -$25.08 million ($0.22) -23.18
Lannett $633.34 million 1.72 -$580,000.00 $1.12 25.80

Lannett has lower revenue, but higher earnings than Opko Health. Opko Health is trading at a lower price-to-earnings ratio than Lannett, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Opko Health has a beta of 1.81, suggesting that its share price is 81% more volatile than the S&P 500. Comparatively, Lannett has a beta of 2.85, suggesting that its share price is 185% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Opko Health and Lannett, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Opko Health 0 2 6 0 2.75
Lannett 0 3 2 0 2.40

Opko Health currently has a consensus price target of $14.81, suggesting a potential upside of 190.44%. Lannett has a consensus price target of $21.50, suggesting a potential downside of 25.61%. Given Opko Health’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Opko Health is more favorable than Lannett.

Summary

Lannett beats Opko Health on 7 of the 13 factors compared between the two stocks.

Opko Health Company Profile

OPKO Health, Inc. is a healthcare company. Its segments include Pharmaceutical, Diagnostics and Corporate. Pharmaceutical consists of the pharmaceutical operations in Chile, Mexico, Ireland, Israel and Spain and its pharmaceutical research and development operations. Diagnostics consists of the clinical laboratory operations in Bio-Reference Laboratories (Bio-Reference) and its point-of-care operations. Through Bio-Reference, it operates laboratory divisions, such as Bio-Reference, GenPath (Oncology), GenPath (Women’s Health), GeneDx and Laboratorio Bueno Salud. As of December 31, 2016, it had one commercial stage pharmaceutical product and several pharmaceutical compounds and technologies in various stages of research and development for a range of indications and conditions, including Renal Products, Biologics, hGH-CTP, Factor VII, Oxyntomodulin, active pharmaceutical ingredients, Oligonucleotide Therapeutics, NK-1 Program, Asthma and chronic obstructive pulmonary disease.

Lannett Company Profile

Lannett Company, Inc. develops, manufactures, markets and distributes generic versions of brand pharmaceutical products. The Company manufactures and/or distributes prescription products with the exception of a small portfolio of over-the-counter products manufactured by its subsidiary, Silarx Pharmaceuticals, Inc. As of June 30, 2016, the Company’s products included Acetazolamide Tablets; Butalbital, Acetaminophen and Caffeine Tablets; Butalbital, Aspirin and Caffeine Capsules; C-Topical Solution; Digoxin Tablets; Glycolax Rx; Isosorbide Mononitrate CR; Levothyroxine Sodium Tablets; Methylphenidate HCL CD; Methylphenidate ER; Nifedipine CR; Omeprazole DR; Oxbutynin ER; Pantoprazole DR; Pilocarpine HCl Tablets; Triamterene w/Hydrochlorothiazide Capsules, and Ursodiol Capsules. The Company has additional products under development, which are orally administered solid oral-dosage products (tablet/capsule) or oral solutions, nasal, topicals or parentarels, as well as other dosage forms.

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