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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Supernus Pharmaceuticals and Salix Pharmaceuticals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Supernus Pharmaceuticals 0 3 3 0 2.50
Salix Pharmaceuticals 0 0 0 0 N/A

Supernus Pharmaceuticals currently has a consensus target price of $47.50, indicating a potential upside of 21.41%. Given Supernus Pharmaceuticals’ higher probable upside, research analysts plainly believe Supernus Pharmaceuticals is more favorable than Salix Pharmaceuticals.

Institutional & Insider Ownership

95.4% of Supernus Pharmaceuticals shares are owned by institutional investors. 6.7% of Supernus Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Supernus Pharmaceuticals and Salix Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Supernus Pharmaceuticals 41.10% 30.73% 19.48%
Salix Pharmaceuticals -2,134.34% -305.24% -25.83%

Earnings and Valuation

This table compares Supernus Pharmaceuticals and Salix Pharmaceuticals’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Supernus Pharmaceuticals $252.59 million 7.85 $82.36 million $1.95 20.06
Salix Pharmaceuticals N/A N/A N/A N/A N/A

Supernus Pharmaceuticals has higher revenue and earnings than Salix Pharmaceuticals.

Summary

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

About Supernus Pharmaceuticals

Supernus Pharmaceuticals, Inc. is a pharmaceutical company focused on developing and commercializing products for the treatment of central nervous system diseases. The Company offers Oxtellar XR (extended-release oxcarbazepine) and Trokendi XR (extended-release topiramate), its two treatments for patients with epilepsy. In addition, it is developing multiple product candidates in psychiatry to address unmet medical needs and market opportunities for the treatment of impulsive aggression (IA) and for the treatment of attention deficit hyperactivity disorder (ADHD). It is developing SPN-810 (molindone hydrochloride) to treat IA in patients having ADHD. It is developing SPN-812 (viloxazine hydrochloride) as a candidate to treat patients having ADHD. The Company’s neurology portfolio consists of Oxtellar XR and Trokendi XR, which are the first once-daily extended release oxcarbazepine and topiramate products, respectively, indicated for epilepsy in the United States market.

About Salix Pharmaceuticals

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.

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