Analyzing Pernix Therapeutics (PTX) and Aceto (ACET)

Pernix Therapeutics (NASDAQ: PTX) and Aceto (NASDAQ:ACET) are both small-cap healthcare companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, valuation, earnings, risk, analyst recommendations and profitability.

Valuation & Earnings

This table compares Pernix Therapeutics and Aceto’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Pernix Therapeutics $140.86 million 0.21 -$169.59 million ($13.62) -0.18
Aceto $638.32 million 0.35 $11.37 million $0.23 31.87

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

Dividends

Aceto pays an annual dividend of $0.26 per share and has a dividend yield of 3.5%. Pernix Therapeutics does not pay a dividend. Aceto pays out 113.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Institutional and Insider Ownership

15.2% of Pernix Therapeutics shares are owned by institutional investors. Comparatively, 73.6% of Aceto shares are owned by institutional investors. 1.4% of Pernix Therapeutics shares are owned by insiders. Comparatively, 4.1% of Aceto shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Pernix Therapeutics -97.10% N/A -37.13%
Aceto -0.79% 10.26% 4.01%

Volatility & Risk

Pernix Therapeutics has a beta of 1.64, meaning that its share price is 64% more volatile than the S&P 500. Comparatively, Aceto has a beta of 1.4, meaning that its share price is 40% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Pernix Therapeutics and Aceto, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pernix Therapeutics 0 0 0 0 N/A
Aceto 0 0 1 0 3.00

Aceto has a consensus price target of $10.00, suggesting a potential upside of 36.43%. Given Aceto’s higher probable upside, analysts plainly believe Aceto is more favorable than Pernix Therapeutics.

Summary

Aceto beats Pernix Therapeutics on 13 of the 15 factors compared between the two stocks.

Pernix Therapeutics Company Profile

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.

Aceto Company Profile

Aceto Corporation (Aceto) is engaged in the marketing, sales and distribution of finished dosage form generic pharmaceuticals, nutraceutical products, pharmaceutical active ingredients and intermediates, specialty performance chemicals inclusive of agricultural intermediates and agricultural protection products. The Company’s business is organized along product lines into three segments: Human Health, Pharmaceutical Ingredients and Performance Chemicals. As of June 30, 2016, it distributed over 1,100 chemical compounds used primarily as finished products or raw materials in the agricultural, coatings and industrial chemical industries. The Human Health segment includes finished dosage form generic drugs and nutraceutical products. As of June 30, 2016, the Pharmaceutical Ingredients segment had two product groups: Active Pharmaceutical Ingredients and Pharmaceutical Intermediates. The Performance Chemicals segment includes specialty chemicals and agricultural protection products.

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