Financial Analysis: Cumberland Pharmaceuticals (CPIX) vs. The Medicines (NASDAQ:MDCO)
Cumberland Pharmaceuticals (NASDAQ: CPIX) and The Medicines (NASDAQ:MDCO) are both medical companies, but which is the better business? We will compare the two companies based on the strength of their profitabiliy, earnings, valuation, institutional ownership, dividends, analyst recommendations and risk.
This table compares Cumberland Pharmaceuticals and The Medicines’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares Cumberland Pharmaceuticals and The Medicines’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Cumberland Pharmaceuticals||$34.92 million||3.16||$885,950.00||($0.12)||-57.33|
|The Medicines||$141.74 million||19.60||-$306.00 million||($1.90)||-20.57|
Cumberland Pharmaceuticals has higher revenue, but lower earnings than The Medicines. Cumberland Pharmaceuticals is trading at a lower price-to-earnings ratio than The Medicines, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and target prices for Cumberland Pharmaceuticals and The Medicines, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
The Medicines has a consensus target price of $54.80, indicating a potential upside of 40.23%. Given The Medicines’ higher possible upside, analysts plainly believe The Medicines is more favorable than Cumberland Pharmaceuticals.
Risk & Volatility
Cumberland Pharmaceuticals has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500. Comparatively, The Medicines has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500.
Institutional and Insider Ownership
34.5% of Cumberland Pharmaceuticals shares are held by institutional investors. 38.0% of Cumberland Pharmaceuticals shares are held by company insiders. Comparatively, 7.9% of The Medicines shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Cumberland Pharmaceuticals beats The Medicines on 8 of the 12 factors compared between the two stocks.
Cumberland Pharmaceuticals Company Profile
Cumberland Pharmaceuticals Inc. (Cumberland) is a specialty pharmaceutical company. The Company is focused on the acquisition, development and commercialization of branded prescription products. The Company operates through specialty pharmaceutical products segment. The Company’s product portfolio includes Acetadote (acetylcysteine) Injection for the treatment of acetaminophen poisoning; Caldolor (ibuprofen) Injection for the treatment of pain and fever; Kristalose (lactulose) for Oral Solution for the treatment of chronic and acute constipation; Omeclamox-Pak, (omeprazole, clarithromycin, amoxicillin) for the treatment of Helicobacter pylori (H. pylori) infection and related duodenal ulcer disease; Vaprisol (conivaptan) Injection to raise serum sodium levels in hospitalized patients with euvolemic and hypervolemic hyponatremia; Hepatoren (ifetroban) Injection, and Boxaban (ifetroban) oral capsules for the treatment of patients with aspirin-exacerbated respiratory disease (AERD).
The Medicines Company Profile
The Medicines Company is a global biopharmaceutical company. The Company is focused on advancing the treatment of acute and intensive care patients through the delivery of medicines to the hospital marketplace around the world. It markets Angiomax (bivalirudin), Ionsys (fentanyl iontophoretic transdermal system), Minocin (minocycline) for injection and Orbactiv (oritavancin). It also has a pipeline of products in development, including Carbavance, inclisiran and MDCO-700. Carbavance is used for the treatment of hospitalized patients with gram-negative bacterial infections. Inclisiran is used for the treatment of hypercholesterolemia. MDCO-700 includes sedative-hypnotic, which is used to induce and maintain sedation for procedural care and general anesthesia for surgical care. In addition to these products and products in development, it has a portfolio of generic drugs.
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