Perrigo (NYSE:PRGO – Get Free Report) and TherapeuticsMD (NASDAQ:TXMD – Get Free Report) are both small-cap healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, dividends, analyst recommendations, valuation and risk.
Insider and Institutional Ownership
95.9% of Perrigo shares are held by institutional investors. Comparatively, 30.7% of TherapeuticsMD shares are held by institutional investors. 0.4% of Perrigo shares are held by insiders. Comparatively, 1.7% of TherapeuticsMD shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Perrigo and TherapeuticsMD’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Perrigo | -41.85% | 11.25% | 4.08% |
| TherapeuticsMD | -6.64% | -1.09% | -0.78% |
Volatility & Risk
Earnings and Valuation
This table compares Perrigo and TherapeuticsMD”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Perrigo | $4.25 billion | 0.45 | -$1.43 billion | ($12.51) | -1.09 |
| TherapeuticsMD | $3.02 million | 8.28 | -$570,000.00 | $0.02 | 108.00 |
TherapeuticsMD has lower revenue, but higher earnings than Perrigo. Perrigo is trading at a lower price-to-earnings ratio than TherapeuticsMD, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current recommendations and price targets for Perrigo and TherapeuticsMD, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Perrigo | 1 | 4 | 1 | 0 | 2.00 |
| TherapeuticsMD | 1 | 0 | 0 | 0 | 1.00 |
Perrigo currently has a consensus target price of $19.33, indicating a potential upside of 41.50%. Given Perrigo’s stronger consensus rating and higher possible upside, analysts clearly believe Perrigo is more favorable than TherapeuticsMD.
About Perrigo
Perrigo Company plc provides over-the-counter health and wellness solutions to enhance individual well-being in the United States, Europe, and internationally. It operates through Consumer Self-Care Americas and Consumer Self-Care International segments. The company develops, manufactures, markets, and distributes self-care consumer products, such as upper respiratory products, including cough suppressants, expectorants, and sinus and allergy relief; nutrition products consisting of infant formulas and nutritional beverages; digestive health products, including antacids, anti-diarrheal, and anti-heartburn; pain and sleep-aids products comprising pain relievers and fever reducers; and oral care products, which include toothbrushes, toothbrush replacement heads, floss, flossers, whitening products, and toothbrush covers. It also offers healthy lifestyle products, such as smoking cessation, well-being, and weight management products; skin care products consisting of dermatological care, scar management, lice treatment, and other products for various skin conditions; women's health products comprising feminine hygiene and contraceptives; vitamins, minerals, and supplements; rare diseases business; and other miscellaneous self-care products. The company sells its products under the Compeed, Dr. Fresh, Firefly, Good Sense, Good Start, Mederma, Nasonex, Plackers, Prevacid24HR, REACH, Rembrandt, Steripod, Opill, Solpadeine, Coldrex, Physiomer, NiQuitin, ACO, ellaOne, Compeed Stops, XLS, Arterin, Davitamon, Apiserum, Abtei, and Nicorette brands. It also offers contract manufacturing services. The company sells its products through retail drug, supermarket, and mass merchandise chains; e-commerce stores; wholesalers; pharmacies; drug and grocery retailers; and para-pharmacies. The company was formerly known as Perrigo Company and changed its name to Perrigo Company plc in December 2013. Perrigo Company plc was founded in 1887 and is headquartered in Dublin, Ireland.
About TherapeuticsMD
TherapeuticsMD, Inc. operates as a pharmaceutical royalty company in the United States. It has a license agreement with Mayne Pharma to commercialize the IMVEXXY, BIJUVA, and ANNOVERA prescription prenatal vitamin products sold under the BocaGreenMD and vitaMedMD brand names. The company sells its prescription pharmaceutical products and prenatal vitamin products through wholesale distributors and retail pharmacy distributors. TherapeuticsMD, Inc. was founded in 2008 and is headquartered in Boca Raton, Florida.
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