Reviewing Akorn (AKRX) and Lannett Co (LCI)

Lannett Co (NYSE: LCI) and Akorn (NASDAQ:AKRX) are both medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, risk, earnings, analyst recommendations and profitability.

Profitability

This table compares Lannett Co and Akorn’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lannett Co -0.09% 19.80% 6.42%
Akorn 12.15% 23.76% 10.11%

Volatility & Risk

Lannett Co has a beta of 2.76, suggesting that its stock price is 176% more volatile than the S&P 500. Comparatively, Akorn has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500.

Institutional and Insider Ownership

88.0% of Lannett Co shares are owned by institutional investors. Comparatively, 69.3% of Akorn shares are owned by institutional investors. 15.0% of Lannett Co shares are owned by insiders. Comparatively, 28.2% of Akorn shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Lannett Co and Akorn, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lannett Co 0 3 2 0 2.40
Akorn 2 8 1 0 1.91

Lannett Co currently has a consensus price target of $21.00, suggesting a potential downside of 6.67%. Akorn has a consensus price target of $29.13, suggesting a potential downside of 10.44%. Given Lannett Co’s stronger consensus rating and higher probable upside, research analysts clearly believe Lannett Co is more favorable than Akorn.

Earnings & Valuation

This table compares Lannett Co and Akorn’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Lannett Co $637.34 million 1.32 $245.00 million ($0.03) -749.75
Akorn $1.02 billion 3.98 $372.04 million $0.99 32.85

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

Summary

Akorn beats Lannett Co on 9 of the 14 factors compared between the two stocks.

About Lannett Co

Lannett Company, Inc. develops, manufactures, markets and distributes generic versions of brand pharmaceutical products. The Company manufactures and/or distributes prescription products with the exception of a small portfolio of over-the-counter products manufactured by its subsidiary, Silarx Pharmaceuticals, Inc. As of June 30, 2016, the Company’s products included Acetazolamide Tablets; Butalbital, Acetaminophen and Caffeine Tablets; Butalbital, Aspirin and Caffeine Capsules; C-Topical Solution; Digoxin Tablets; Glycolax Rx; Isosorbide Mononitrate CR; Levothyroxine Sodium Tablets; Methylphenidate HCL CD; Methylphenidate ER; Nifedipine CR; Omeprazole DR; Oxbutynin ER; Pantoprazole DR; Pilocarpine HCl Tablets; Triamterene w/Hydrochlorothiazide Capsules, and Ursodiol Capsules. The Company has additional products under development, which are orally administered solid oral-dosage products (tablet/capsule) or oral solutions, nasal, topicals or parentarels, as well as other dosage forms.

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.

Receive News & Ratings for Lannett Co Inc Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Lannett Co Inc and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply