AMAG Pharmaceuticals (NASDAQ: AMAG) and Teligent (NASDAQ:TLGT) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, profitability, institutional ownership, risk, analyst recommendations, earnings and valuation.

Institutional and Insider Ownership

66.0% of Teligent shares are held by institutional investors. 3.8% of AMAG Pharmaceuticals shares are held by insiders. Comparatively, 22.6% of Teligent shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares AMAG Pharmaceuticals and Teligent’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AMAG Pharmaceuticals -7.58% -4.81% -1.85%
Teligent -11.36% 1.49% 0.46%

Analyst Recommendations

This is a breakdown of current ratings for AMAG Pharmaceuticals and Teligent, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AMAG Pharmaceuticals 1 9 3 0 2.15
Teligent 0 1 2 0 2.67

AMAG Pharmaceuticals presently has a consensus target price of $28.45, indicating a potential upside of 56.34%. Teligent has a consensus target price of $9.33, indicating a potential upside of 36.05%. Given AMAG Pharmaceuticals’ higher possible upside, equities research analysts clearly believe AMAG Pharmaceuticals is more favorable than Teligent.

Volatility & Risk

AMAG Pharmaceuticals has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500. Comparatively, Teligent has a beta of 1.6, indicating that its stock price is 60% more volatile than the S&P 500.

Valuation & Earnings

This table compares AMAG Pharmaceuticals and Teligent’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
AMAG Pharmaceuticals $593.24 million 1.08 $237.60 million ($1.34) -13.58
Teligent $72.39 million 5.06 $6.48 million ($0.16) -42.88

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

Summary

Teligent beats AMAG Pharmaceuticals on 8 of the 13 factors compared between the two stocks.

AMAG Pharmaceuticals Company Profile

AMAG Pharmaceuticals, Inc. is a pharmaceutical company. The Company’s segment is the manufacture, development and commercialization of products and services for use in treating various conditions, with a focus on maternal health, anemia management and cancer supportive care. Its offerings focus on maternal health, anemia management and cancer supportive care, including its product, Makena (hydroxyprogesterone caproate injection); services related to the collection, processing and storage of umbilical cord blood stem cell and cord tissue units operated through Cord Blood Registry (CBR); its product, Feraheme (ferumoxytol), for intravenous (IV) use, and MuGard Mucoadhesive Oral Wound Rinse. It is engaged in the development of Digoxin immune fab, a polyclonal antibody for the treatment of severe preeclampsia in pregnant women. Makena is a drug indicated to reduce the risk of preterm birth in women pregnant with a single baby having a history of singleton spontaneous preterm birth.

Teligent Company Profile

Teligent, Inc. is a specialty generic pharmaceutical company. Under the Company’s own label, it markets and sells generic injectable pharmaceutical products in the United States and Canada. In the United States it marketed 16 generic topical pharmaceutical products and four branded generic pharmaceutical products, as of December 31, 2016. It provides development, formulation and manufacturing services to the pharmaceutical, over-the-counter (OTC) and cosmetic industries. It focuses on developing, manufacturing and marketing a portfolio of generic pharmaceutical products under its own label in topical, injectable, complex and ophthalmic dosage forms, and managing its contract manufacturing and formulation services business. Its pipeline included 34 Abbreviated New Drug Application(ANDAs) filed with the United States Food and Drug Administration (FDA) for additional pharmaceutical products, as of December 31, 2016.

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