Critical Comparison: Impax Laboratories (IPXL) & Innocoll (INNL)

Impax Laboratories (NASDAQ: IPXL) and Innocoll (NASDAQ:INNL) are both small-cap pharmaceuticals – nec companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, risk, institutional ownership, earnings, profitability, valuation and analyst recommendations.

Profitability

This table compares Impax Laboratories and Innocoll’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Impax Laboratories -56.59% 9.06% 2.87%
Innocoll -1,051.20% N/A -138.53%

Valuation & Earnings

This table compares Impax Laboratories and Innocoll’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Impax Laboratories $824.43 million 1.81 -$472.03 million ($6.25) -3.22
Innocoll N/A N/A N/A ($1.66) -1.42

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

Analyst Ratings

This is a breakdown of current ratings and price targets for Impax Laboratories and Innocoll, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Impax Laboratories 0 9 5 0 2.36
Innocoll 0 2 1 0 2.33

Impax Laboratories presently has a consensus price target of $20.29, suggesting a potential upside of 0.67%. Innocoll has a consensus price target of $3.00, suggesting a potential upside of 27.66%. Given Innocoll’s higher possible upside, analysts clearly believe Innocoll is more favorable than Impax Laboratories.

Institutional and Insider Ownership

90.5% of Impax Laboratories shares are owned by institutional investors. Comparatively, 34.2% of Innocoll shares are owned by institutional investors. 3.2% of Impax Laboratories shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Impax Laboratories beats Innocoll on 8 of the 11 factors compared between the two stocks.

Impax Laboratories Company Profile

Impax Laboratories, Inc. is a specialty pharmaceutical company. The Company is engaged in the development, manufacture and marketing of bioequivalent pharmaceutical products (generics), in addition to the development and marketing of branded products. Its segments include Impax Generics and Impax Specialty Pharma. The Impax Generics segment is focused on the development, manufacture, sale and distribution of its generic products, which are the pharmaceutical and therapeutic equivalents of brand-name drug products and are marketed under their established drug names. The Impax Specialty Pharma segment is engaged in the promotion, sale and distribution of several branded products, including its branded pharmaceutical product, Rytary, an extended release oral capsule formulation of carbidopa-levodopa for the treatment of Parkinson’s disease, post-encephalitic Parkinsonism and Parkinsonism, and Zomig (zolmitriptan) products, indicated for the treatment of migraine headaches.

Innocoll Company Profile

Innocoll Holdings Public Limited Company is a commercial-stage specialty pharmaceutical and medical device company with late-stage development programs. The Company operates through the segment of manufacture and sale of collagen-based pharmaceutical products. It utilizes collagen-based technology platform to develop its biodegradable and bioresorbable products and product candidates, which can be broken down by the body without the need for surgical removal or applied topically. Using its processes at its manufacturing facility, it derives and purifies bovine and equine collagen and then utilizes its technology platform to incorporate the purified collagen into its topical and implantable products. Its lead product candidates are XaraColl for the treatment of post-operative pain and Cogenzia for the treatment of diabetic foot infections. Its marketed products include CollaGUARD, Collatamp, Septocoll and RegenePro. It has initiated its Phase III efficacy trials for Cogenzia.

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