ANI Pharmaceuticals (NASDAQ: ANIP) and INC Research (NASDAQ:INCR) are both healthcare companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, profitability and dividends.

Risk & Volatility

ANI Pharmaceuticals has a beta of 2.9, suggesting that its stock price is 190% more volatile than the S&P 500. Comparatively, INC Research has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500.

Insider and Institutional Ownership

55.1% of ANI Pharmaceuticals shares are held by institutional investors. Comparatively, 99.5% of INC Research shares are held by institutional investors. 31.8% of ANI Pharmaceuticals shares are held by company insiders. Comparatively, 0.2% of INC Research shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares ANI Pharmaceuticals and INC Research’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ANI Pharmaceuticals 4.45% 22.40% 11.14%
INC Research -4.29% 14.42% 5.17%

Earnings & Valuation

This table compares ANI Pharmaceuticals and INC Research’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ANI Pharmaceuticals $128.62 million 6.23 $3.93 million $0.63 109.25
INC Research $1.61 billion 2.62 $112.63 million ($0.57) -71.05

INC Research has higher revenue and earnings than ANI Pharmaceuticals. INC Research is trading at a lower price-to-earnings ratio than ANI Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations and price targets for ANI Pharmaceuticals and INC Research, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ANI Pharmaceuticals 0 1 2 0 2.67
INC Research 0 4 6 0 2.60

ANI Pharmaceuticals presently has a consensus target price of $71.00, indicating a potential upside of 3.15%. INC Research has a consensus target price of $49.88, indicating a potential upside of 23.15%. Given INC Research’s higher possible upside, analysts clearly believe INC Research is more favorable than ANI Pharmaceuticals.

Summary

ANI Pharmaceuticals beats INC Research on 9 of the 14 factors compared between the two stocks.

About ANI Pharmaceuticals

ANI Pharmaceuticals, Inc. is an integrated specialty pharmaceutical company. The Company is engaged in developing, manufacturing and marketing branded and generic prescription pharmaceuticals. The Company focuses on areas, including controlled substances, anti-cancer (oncolytics), hormones and steroids, and complex formulations. It also performs contract manufacturing for other pharmaceutical companies. Its products include both branded and generic pharmaceuticals. Its generic products include Erythromycin Ethylsuccinate, Esterified Estrogen with Methyltestosterone (EEMT), Etodolac Fenofibrate, Flecainide, Fluvoxamine, Hydrocortisone Enema, Methazolamide, Metoclopramide Syrup Nilutamide, Nimodipine, Opium Tincture, Oxycodone Capsules, Oxycodone Oral Solution, Propafenone and Vancomycin. Its branded products include Cortenema, Inderal LA, Lithobid, Reglan and Vancocin. Its pharmaceutical manufacturing facilities are located in Baudette, Minnesota.

About INC Research

INC Research Holdings, Inc. is a global contract research organization (CRO). The Company focuses on Phase I to Phase IV clinical development services for the biopharmaceutical and medical device industries. The Company operates through two segments: Clinical Development Services and Phase I Services. The Company’s Clinical Development Services segment offers a range of clinical development services, including full-service global studies, as well as ancillary services, such as clinical monitoring, investigator recruitment, patient recruitment, data management, study reports to assist customers with their drug development process, quality assurance audits and specialized consulting services. The Phase I Services segment focuses on clinical development services for Phase I trials, which include scientific exploratory medicine, first-in-human studies through proof-of-concept stages and support for Phase I studies in established compounds.

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