Avadel Pharmaceuticals plc – American Depositary Shares each representing one Ordinary Share (NASDAQ: AVDL) and Acura Pharmaceuticals (OTCMKTS:ACUR) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, dividends, analyst recommendations, risk, institutional ownership, earnings and valuation.

Valuation & Earnings

This table compares Avadel Pharmaceuticals plc – American Depositary Shares each representing one Ordinary Share and Acura Pharmaceuticals’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Avadel Pharmaceuticals plc – American Depositary Shares each representing one Ordinary Share $150.25 million 2.36 -$41.27 million $1.93 4.59
Acura Pharmaceuticals $4.46 million 1.87 -$7.38 million ($0.14) -2.86

Acura Pharmaceuticals has lower revenue, but higher earnings than Avadel Pharmaceuticals plc – American Depositary Shares each representing one Ordinary Share. Acura Pharmaceuticals is trading at a lower price-to-earnings ratio than Avadel Pharmaceuticals plc – American Depositary Shares each representing one Ordinary Share, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Avadel Pharmaceuticals plc – American Depositary Shares each representing one Ordinary Share and Acura Pharmaceuticals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Avadel Pharmaceuticals plc – American Depositary Shares each representing one Ordinary Share 0 0 2 0 3.00
Acura Pharmaceuticals 0 0 0 0 N/A

Avadel Pharmaceuticals plc – American Depositary Shares each representing one Ordinary Share presently has a consensus target price of $25.00, indicating a potential upside of 182.49%. Given Avadel Pharmaceuticals plc – American Depositary Shares each representing one Ordinary Share’s higher probable upside, research analysts plainly believe Avadel Pharmaceuticals plc – American Depositary Shares each representing one Ordinary Share is more favorable than Acura Pharmaceuticals.

Profitability

This table compares Avadel Pharmaceuticals plc – American Depositary Shares each representing one Ordinary Share and Acura Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Avadel Pharmaceuticals plc – American Depositary Shares each representing one Ordinary Share 44.47% 33.92% 8.94%
Acura Pharmaceuticals -36.20% -231.18% -31.56%

Risk & Volatility

Avadel Pharmaceuticals plc – American Depositary Shares each representing one Ordinary Share has a beta of 1.41, meaning that its stock price is 41% more volatile than the S&P 500. Comparatively, Acura Pharmaceuticals has a beta of 2.03, meaning that its stock price is 103% more volatile than the S&P 500.

Institutional and Insider Ownership

67.9% of Avadel Pharmaceuticals plc – American Depositary Shares each representing one Ordinary Share shares are held by institutional investors. Comparatively, 9.4% of Acura Pharmaceuticals shares are held by institutional investors. 5.1% of Avadel Pharmaceuticals plc – American Depositary Shares each representing one Ordinary Share shares are held by insiders. Comparatively, 5.6% of Acura Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Avadel Pharmaceuticals plc – American Depositary Shares each representing one Ordinary Share beats Acura Pharmaceuticals on 9 of the 12 factors compared between the two stocks.

About Avadel Pharmaceuticals plc – American Depositary Shares each representing one Ordinary Share

Avadel Pharmaceuticals plc (NASDAQ: AVDL) is a specialty pharmaceutical company that seeks to commercialize differentiated pharmaceutical products that are safe, effective and easy to take through formulation development, by utilizing its proprietary drug delivery technology and in-licensing / acquiring new products; ultimately, helping patients adhere to their prescribed medical treatment and see better results. The Company is headquartered in Dublin, Ireland with operations in St. Louis, Missouri and Lyon, France.

About Acura Pharmaceuticals

Acura Pharmaceuticals, Inc. is a pharmaceutical company. The Company is engaged in the research, development and commercialization of technologies and products intended to address medication abuse and misuse. The Company has discovered and developed three platform technologies, which can be used to develop multiple products. The Company’s Oxaydo Tablets (oxycodone HCl, CII), which utilizes the Aversion Technology, is an approved and immediate-release (IR) oxycodone product in the United States. The Company’s Impede technology products include Nexafed and Nexafed Sinus Pressure + Pain. Its third deterrent technology is Limitx, which is designed to retard the release of active drug ingredients when too many tablets are accidently or purposefully ingested. The Company’s Aversion and Limitx technologies are intended to address methods associated with opioid and its Impede technology is directed at the extraction and conversion of pseudoephedrine into methamphetamine.

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