Financial Analysis: Mallinckrodt PLC (MNK) & Rockwell Medical (RMTI)
Mallinckrodt PLC (NYSE: MNK) and Rockwell Medical (NASDAQ:RMTI) are both medical companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, risk, profitability, institutional ownership, valuation, earnings and analyst recommendations.
Risk & Volatility
Mallinckrodt PLC has a beta of 1.52, meaning that its share price is 52% more volatile than the S&P 500. Comparatively, Rockwell Medical has a beta of 2.04, meaning that its share price is 104% more volatile than the S&P 500.
This table compares Mallinckrodt PLC and Rockwell Medical’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
97.5% of Mallinckrodt PLC shares are held by institutional investors. Comparatively, 21.4% of Rockwell Medical shares are held by institutional investors. 0.5% of Mallinckrodt PLC shares are held by insiders. Comparatively, 15.9% of Rockwell Medical shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Mallinckrodt PLC and Rockwell Medical’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Mallinckrodt PLC||$3.27 billion||1.16||$666.60 million||$4.10||9.55|
|Rockwell Medical||$54.04 million||6.34||-$21.07 million||($0.42)||-15.76|
Mallinckrodt PLC has higher revenue and earnings than Rockwell Medical. Rockwell Medical is trading at a lower price-to-earnings ratio than Mallinckrodt PLC, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings for Mallinckrodt PLC and Rockwell Medical, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Mallinckrodt PLC currently has a consensus target price of $70.54, indicating a potential upside of 80.21%. Rockwell Medical has a consensus target price of $9.33, indicating a potential upside of 40.99%. Given Mallinckrodt PLC’s stronger consensus rating and higher possible upside, analysts clearly believe Mallinckrodt PLC is more favorable than Rockwell Medical.
Mallinckrodt PLC beats Rockwell Medical on 10 of the 14 factors compared between the two stocks.
About Mallinckrodt PLC
Mallinckrodt public limited company develops, manufactures, markets and distributes branded and generic specialty pharmaceutical products and therapies. The Company focuses on various therapeutic areas, such as autoimmune and rare disease specialty areas, including neurology, rheumatology, nephrology, ophthalmology and pulmonology; immunotherapy and neonatal critical care respiratory therapies; analgesics and hemostasis products, and central nervous system drugs. Its segments include Specialty Brands and Specialty Generics. The Specialty Brands segment produces and markets branded pharmaceutical products and therapies. The Specialty Generics segment produces and markets specialty generic pharmaceuticals and active pharmaceutical ingredient (API) consisting of biologics, medicinal opioids, synthetic controlled substances, acetaminophen and other active ingredients. Its product portfolio includes Acthar, Inomax, Ofirmev, Therakos immunotherapy, Hemostasis products and StrataGraft.
About Rockwell Medical
Rockwell Medical, Inc. (Rockwell) is a biopharmaceutical company targeting end-stage renal disease (ESRD) and chronic kidney disease (CKD) with products and services for the treatment of iron deficiency, secondary hyperparathyroidism and hemodialysis. The Company operates through the hemodialysis market segment, which involves the manufacture, sale and distribution of hemodialysis products to hemodialysis clinics, including pharmaceutical, dialysis concentrates, dialysis kits and other ancillary products used in the dialysis process. The Company’s drug products include Triferic (ferric pyrophosphate citrate) and Calcitriol (Active Vitamin D) Injection. Triferic is an iron compound that is delivered to hemodialysis patients through dialysate, replacing the iron loss that occurs during their dialysis treatment. Calcitriol (active vitamin D) injection is indicated for treatment of secondary hyperparathyroidism in dialysis patients.
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