Macrocure (NASDAQ: MCUR) and Mallinckrodt PLC (NYSE:MNK) are both healthcare companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, profitabiliy, dividends, earnings and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Macrocure and Mallinckrodt PLC, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Macrocure 0 0 0 0 N/A
Mallinckrodt PLC 0 2 15 0 2.88

Mallinckrodt PLC has a consensus price target of $76.26, suggesting a potential upside of 85.92%. Given Mallinckrodt PLC’s higher probable upside, analysts clearly believe Mallinckrodt PLC is more favorable than Macrocure.

Profitability

This table compares Macrocure and Mallinckrodt PLC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Macrocure N/A -24.50% -22.85%
Mallinckrodt PLC 16.01% 16.33% 5.48%

Earnings and Valuation

This table compares Macrocure and Mallinckrodt PLC’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Macrocure N/A N/A N/A ($1.91) -0.79
Mallinckrodt PLC $3.31 billion 1.23 $744.30 million $5.28 7.77

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

Insider and Institutional Ownership

2.8% of Macrocure shares are owned by institutional investors. Comparatively, 95.7% of Mallinckrodt PLC shares are owned by institutional investors. 0.5% of Mallinckrodt PLC shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk & Volatility

Macrocure has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500. Comparatively, Mallinckrodt PLC has a beta of 1.52, indicating that its share price is 52% more volatile than the S&P 500.

Summary

Mallinckrodt PLC beats Macrocure on 10 of the 10 factors compared between the two stocks.

About Macrocure

Leap Therapeutics Ltd, formerly Macrocure Ltd, is a biotechnology company. The Company is focused on developing, manufacturing and commercializing cell therapy products to address unmet needs for the treatment of chronic wounds, such as diabetic foot ulcers (DFUs) and venous leg ulcers (VLUs). Its product candidate, CureXcell, is a combination of living human white blood cells that have been activated to facilitate the healing process and stimulate wound closure. CureXcell is in Phase III. Its CureXcell addresses each phase of healing in the impaired wound, including the production of growth factors and other biochemical factors involved in fibroblast activation, cell migration and extracellular matrix production, stimulating the body’s natural healing process. Its delivery method of direct superficial injection into the chronic wound allows the precise delivery of the cells into the defective wound tissue where they can be effective.

About Mallinckrodt PLC

Mallinckrodt public limited company develops, manufactures, markets and distributes branded and generic specialty pharmaceutical products and therapies. The Company focuses on various therapeutic areas, such as autoimmune and rare disease specialty areas, including neurology, rheumatology, nephrology, ophthalmology and pulmonology; immunotherapy and neonatal critical care respiratory therapies; analgesics and hemostasis products, and central nervous system drugs. Its segments include Specialty Brands and Specialty Generics. The Specialty Brands segment produces and markets branded pharmaceutical products and therapies. The Specialty Generics segment produces and markets specialty generic pharmaceuticals and active pharmaceutical ingredient (API) consisting of biologics, medicinal opioids, synthetic controlled substances, acetaminophen and other active ingredients. Its product portfolio includes Acthar, Inomax, Ofirmev, Therakos immunotherapy, Hemostasis products and StrataGraft.

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