Akorn (NASDAQ: AKRX) and Warner Chilcott Plc (NASDAQ:WCRX) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, valuation, profitability and analyst recommendations.

Valuation and Earnings

This table compares Akorn and Warner Chilcott Plc’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Akorn $1.02 billion 4.08 $372.04 million $0.99 33.62
Warner Chilcott Plc N/A N/A N/A N/A N/A

Akorn has higher revenue and earnings than Warner Chilcott Plc.

Profitability

This table compares Akorn and Warner Chilcott Plc’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Akorn 12.15% 23.76% 10.11%
Warner Chilcott Plc N/A N/A N/A

Analyst Ratings

This is a breakdown of recent recommendations for Akorn and Warner Chilcott Plc, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Akorn 2 8 1 0 1.91
Warner Chilcott Plc 0 0 0 0 N/A

Akorn currently has a consensus target price of $29.13, suggesting a potential downside of 12.48%. Given Akorn’s higher possible upside, equities analysts plainly believe Akorn is more favorable than Warner Chilcott Plc.

Insider and Institutional Ownership

70.0% of Akorn shares are held by institutional investors. 28.2% of Akorn shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Akorn beats Warner Chilcott Plc on 8 of the 8 factors compared between the two stocks.

Akorn Company Profile

Akorn Inc. (Akorn), together with its subsidiaries, is a specialty generic pharmaceutical company that develops, manufactures and markets generic and branded prescription pharmaceuticals, as well as private-label over-the-counter (OTC) consumer health products and animal health pharmaceuticals. The Company operates through two segments: Prescription Pharmaceuticals and the Consumer Health. The Prescription Pharmaceuticals segment consists of generic and branded prescription pharmaceuticals in a range of dosage forms, including sterile ophthalmics, injectables and inhalants and non-sterile oral liquids, topicals and nasal sprays and otics. The Consumer Health segment consists of branded and private-label OTC products and animal health products dispensed by veterinary professionals. Its branded and private-label OTC products are focused on ophthalmics, including a dry eye treatment TheraTears Therapy for Your Eyes.

Warner Chilcott Plc Company Profile

Warner Chilcott Public Limited Company is a specialty pharmaceutical company. The Company is focused on the women’s healthcare, gastroenterology, dermatology and urology segments of the branded pharmaceuticals market, primarily in North America. The Company’s hormonal contraceptive product offerings include LOESTRIN 24 FE (norethindrone acetate and ethinyl estradiol tablets, USP and ferrous fumarate tablets), the branded product in the United States hormonal contraception market, and LO LOESTRIN FE (norethindrone acetate and ethinyl estradiol tablets, ethinyl estradiol tablets and ferrous fumarate tablets), its new oral contraceptive product, launched in January 2011, that offers women the lowest dosage of estrogen of any oral contraceptive available in the United States market. In October 2013, Actavis Inc acquired the entire share capital of Warner Chilcott PLC.

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