Pernix Therapeutics Holdings (NASDAQ: PTX) and Akorn (NASDAQ:AKRX) are both pharmaceuticals – nec companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, valuation, dividends and profitability.

Analyst Ratings

This is a summary of current ratings and price targets for Pernix Therapeutics Holdings and Akorn, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pernix Therapeutics Holdings 0 0 0 0 N/A
Akorn 1 8 1 0 2.00

Akorn has a consensus target price of $30.14, suggesting a potential downside of 9.26%. Given Akorn’s higher possible upside, analysts clearly believe Akorn is more favorable than Pernix Therapeutics Holdings.

Earnings and Valuation

This table compares Pernix Therapeutics Holdings and Akorn’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Pernix Therapeutics Holdings $140.86 million 0.25 -$169.59 million ($13.62) -0.22
Akorn $1.12 billion 3.72 $184.24 million $0.99 33.56

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

Profitability

This table compares Pernix Therapeutics Holdings and Akorn’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pernix Therapeutics Holdings -97.10% N/A -37.13%
Akorn 7.79% 15.14% 6.51%

Risk and Volatility

Pernix Therapeutics Holdings has a beta of 1.69, meaning that its share price is 69% more volatile than the S&P 500. Comparatively, Akorn has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500.

Institutional and Insider Ownership

17.1% of Pernix Therapeutics Holdings shares are held by institutional investors. Comparatively, 68.7% of Akorn shares are held by institutional investors. 1.4% of Pernix Therapeutics Holdings shares are held by insiders. Comparatively, 28.2% of Akorn shares are held by 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.

Summary

Akorn beats Pernix Therapeutics Holdings on 11 of the 12 factors compared between the two stocks.

About Pernix Therapeutics Holdings

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.

About Akorn

Akorn Inc. (Akorn), together with its subsidiaries, is a specialty generic pharmaceutical company that develops, manufactures and markets generic and branded prescription pharmaceuticals, as well as private-label over-the-counter (OTC) consumer health products and animal health pharmaceuticals. The Company operates through two segments: Prescription Pharmaceuticals and the Consumer Health. The Prescription Pharmaceuticals segment consists of generic and branded prescription pharmaceuticals in a range of dosage forms, including sterile ophthalmics, injectables and inhalants and non-sterile oral liquids, topicals and nasal sprays and otics. The Consumer Health segment consists of branded and private-label OTC products and animal health products dispensed by veterinary professionals. Its branded and private-label OTC products are focused on ophthalmics, including a dry eye treatment TheraTears Therapy for Your Eyes.

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