DARA Biosciences (NASDAQ: DARA) and Mallinckrodt PLC (NYSE:MNK) are both healthcare companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, earnings, risk, valuation, institutional ownership, dividends and analyst recommendations.

Profitability

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

Net Margins Return on Equity Return on Assets
DARA Biosciences -228.42% -145.61% -100.38%
Mallinckrodt PLC 12.64% 15.28% 5.20%

Valuation and Earnings

This table compares DARA Biosciences and Mallinckrodt PLC’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
DARA Biosciences N/A N/A N/A N/A N/A
Mallinckrodt PLC $3.27 billion 1.08 $666.60 million $4.10 8.70

Mallinckrodt PLC has higher revenue and earnings than DARA Biosciences.

Insider and Institutional Ownership

97.4% of Mallinckrodt PLC shares are held by institutional investors. 0.5% of Mallinckrodt PLC shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for DARA Biosciences and Mallinckrodt PLC, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DARA Biosciences 0 0 0 0 N/A
Mallinckrodt PLC 0 4 13 0 2.76

Mallinckrodt PLC has a consensus target price of $59.97, indicating a potential upside of 68.03%. Given Mallinckrodt PLC’s higher possible upside, analysts plainly believe Mallinckrodt PLC is more favorable than DARA Biosciences.

Summary

Mallinckrodt PLC beats DARA Biosciences on 8 of the 8 factors compared between the two stocks.

DARA Biosciences Company Profile

DARA BioSciences Inc is specialty pharmaceutical company based in the United States. The Company’s primary focus is on the commercialization of oncology treatment and oncology supportive care pharmaceutical products, including Soltamox, an oral solution of tamoxifen citrate; cancer support therapeutics, including Gelclair, indicated for the treatment of oral mucositis and Bionect, for the management of irritation of the skin as well as first and second degree burns, and Three Mission Pharmacal products, including Ferralet 90 (for anemia), Binosto (alendronate sodium effervescent tablet indicated for the treatment of osteoporosis) and Aquoral (for cancer related dry mouth). The Company has a clinical development asset, KRN5500, which is a Phase II product candidate targeted for treating cancer patients with painful treatment-refractory chronic chemotherapy induced peripheral neuropathy. The Company is a subsidiary of Midatech Pharma Plc.

Mallinckrodt PLC Company Profile

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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