Akorn (NASDAQ: AKRX) is one of 116 publicly-traded companies in the “Pharmaceuticals” industry, but how does it contrast to its peers? We will compare Akorn to related businesses based on the strength of its institutional ownership, earnings, risk, profitability, dividends, valuation and analyst recommendations.

Volatility and Risk

Akorn has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500. Comparatively, Akorn’s peers have a beta of 0.95, indicating that their average stock price is 5% less volatile than the S&P 500.

Insider & Institutional Ownership

69.4% of Akorn shares are held by institutional investors. Comparatively, 43.7% of shares of all “Pharmaceuticals” companies are held by institutional investors. 28.2% of Akorn shares are held by company insiders. Comparatively, 11.9% of shares of all “Pharmaceuticals” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for Akorn and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Akorn 2 8 1 0 1.91
Akorn Competitors 847 3784 6815 185 2.54

As a group, “Pharmaceuticals” companies have a potential upside of 49.33%. Given Akorn’s peers stronger consensus rating and higher probable upside, analysts clearly believe Akorn has less favorable growth aspects than its peers.

Profitability

This table compares Akorn and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Akorn 12.15% 23.76% 10.11%
Akorn Competitors -2,859.57% -67.91% -9.22%

Earnings & Valuation

This table compares Akorn and its peers gross revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Akorn $1,116.84 $184.24 33.59
Akorn Competitors $8,389.19 $1,123.88 10.43

Akorn’s peers have higher revenue and earnings than Akorn. Akorn is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

Akorn beats its peers on 7 of the 13 factors compared.

About Akorn

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.

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