Salix Pharmaceuticals (NASDAQ: SLXP) and Rockwell Medical (NASDAQ:RMTI) are both healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, dividends, profitabiliy, earnings, institutional ownership and valuation.

Institutional and Insider Ownership

20.7% of Rockwell Medical shares are owned by institutional investors. 15.9% of Rockwell Medical shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Salix Pharmaceuticals and Rockwell Medical’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Salix Pharmaceuticals N/A N/A N/A N/A N/A
Rockwell Medical $54.25 million 8.04 -$19.87 million ($0.39) -21.49

Salix Pharmaceuticals has higher revenue, but lower earnings than Rockwell Medical.

Analyst Recommendations

This is a summary of recent ratings for Salix Pharmaceuticals and Rockwell Medical, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Salix Pharmaceuticals 0 0 0 0 N/A
Rockwell Medical 1 0 1 0 2.00

Rockwell Medical has a consensus target price of $8.50, suggesting a potential upside of 1.43%. Given Rockwell Medical’s higher probable upside, analysts clearly believe Rockwell Medical is more favorable than Salix Pharmaceuticals.

Profitability

This table compares Salix Pharmaceuticals and Rockwell Medical’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Salix Pharmaceuticals -2,134.34% -305.24% -25.83%
Rockwell Medical -36.35% -36.36% -23.65%

Summary

Rockwell Medical beats Salix Pharmaceuticals on 8 of the 8 factors compared between the two stocks.

Salix Pharmaceuticals Company Profile

Salix Pharmaceuticals, Ltd. is a specialty pharmaceutical company engaged in acquiring, developing and commercializing prescription drugs and medical devices used in the treatment of a variety of gastrointestinal disorders. The Company offers over 20 marketed products, such as XIFAXAN550 (rifaximin) tablets, XIFAXAN (rifaximin) tablets, APRISO (mesalamine) extended-release capsules, UCERIS (budesonide MMX) extended release tablets, MOVIPREP, GLUMETZA extended release tablets, RELISTOR subcutaneous injection, UCERIS rectal foam, OSMOPREP tablets, SOLESTA, DEFLUX, FULYZAQ (crofelemer) delayed-release tablets, GIAZO (balsalazide disodium) tablets, CYCLOSET (bromocriptine mesylate) tablets, and FENOGLIDE (fenofibrate) tablets, among others. Its primary product candidates under development include Rifaximin, Methylnaltrexone bromide oral, Ruconest, Rifaximin delayed release or extended intestinal release and Rifaximin soluble solid dispersion (SSD)/next generation.

Rockwell Medical Company Profile

Rockwell Medical, Inc. (Rockwell) is a biopharmaceutical company targeting end-stage renal disease (ESRD) and chronic kidney disease (CKD) with products and services for the treatment of iron deficiency, secondary hyperparathyroidism and hemodialysis. The Company operates through the hemodialysis market segment, which involves the manufacture, sale and distribution of hemodialysis products to hemodialysis clinics, including pharmaceutical, dialysis concentrates, dialysis kits and other ancillary products used in the dialysis process. The Company’s drug products include Triferic (ferric pyrophosphate citrate) and Calcitriol (Active Vitamin D) Injection. Triferic is an iron compound that is delivered to hemodialysis patients through dialysate, replacing the iron loss that occurs during their dialysis treatment. Calcitriol (active vitamin D) injection is indicated for treatment of secondary hyperparathyroidism in dialysis patients.

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