Pernix Therapeutics (NASDAQ:PTX) and AMAG Pharmaceuticals (AMAG) Critical Contrast

Pernix Therapeutics (NASDAQ: PTX) and AMAG Pharmaceuticals (NASDAQ:AMAG) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, earnings, valuation, institutional ownership, risk, profitability and analyst recommendations.

Valuation and Earnings

This table compares Pernix Therapeutics and AMAG Pharmaceuticals’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Pernix Therapeutics $140.86 million 0.22 -$169.59 million ($14.78) -0.18
AMAG Pharmaceuticals $532.09 million 0.96 -$2.48 million ($6.08) -2.37

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

Profitability

This table compares Pernix Therapeutics and AMAG Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pernix Therapeutics -97.10% N/A -37.13%
AMAG Pharmaceuticals -35.35% -0.64% -0.25%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Pernix Therapeutics and AMAG Pharmaceuticals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pernix Therapeutics 0 0 0 0 N/A
AMAG Pharmaceuticals 0 9 3 0 2.25

AMAG Pharmaceuticals has a consensus price target of $21.30, suggesting a potential upside of 47.92%. Given AMAG Pharmaceuticals’ higher possible upside, analysts clearly believe AMAG Pharmaceuticals is more favorable than Pernix Therapeutics.

Institutional & Insider Ownership

16.4% of Pernix Therapeutics shares are held by institutional investors. 1.4% of Pernix Therapeutics shares are held by company insiders. Comparatively, 3.8% of AMAG Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

Pernix Therapeutics has a beta of 1.68, meaning that its stock price is 68% more volatile than the S&P 500. Comparatively, AMAG Pharmaceuticals has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500.

Summary

AMAG Pharmaceuticals beats Pernix Therapeutics on 9 of the 12 factors compared between the two stocks.

Pernix Therapeutics Company Profile

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.

AMAG Pharmaceuticals Company Profile

AMAG Pharmaceuticals, Inc. is a pharmaceutical company. The Company’s segment is the manufacture, development and commercialization of products and services for use in treating various conditions, with a focus on maternal health, anemia management and cancer supportive care. Its offerings focus on maternal health, anemia management and cancer supportive care, including its product, Makena (hydroxyprogesterone caproate injection); services related to the collection, processing and storage of umbilical cord blood stem cell and cord tissue units operated through Cord Blood Registry (CBR); its product, Feraheme (ferumoxytol), for intravenous (IV) use, and MuGard Mucoadhesive Oral Wound Rinse. It is engaged in the development of Digoxin immune fab, a polyclonal antibody for the treatment of severe preeclampsia in pregnant women. Makena is a drug indicated to reduce the risk of preterm birth in women pregnant with a single baby having a history of singleton spontaneous preterm birth.

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