Analyzing Celgene (CELG) & Pernix Therapeutics (PTX)

Pernix Therapeutics (NASDAQ: PTX) and Celgene (NASDAQ:CELG) are both healthcare companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.

Profitability

This table compares Pernix Therapeutics and Celgene’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pernix Therapeutics -97.10% N/A -37.13%
Celgene 27.36% 63.80% 17.45%

Institutional & Insider Ownership

16.4% of Pernix Therapeutics shares are owned by institutional investors. Comparatively, 79.7% of Celgene shares are owned by institutional investors. 1.4% of Pernix Therapeutics shares are owned by company insiders. Comparatively, 1.0% of Celgene shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Pernix Therapeutics and Celgene’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Pernix Therapeutics $140.86 million 0.20 -$169.59 million ($13.62) -0.18
Celgene $11.23 billion 7.44 $2.00 billion $4.24 25.02

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

Volatility & Risk

Pernix Therapeutics has a beta of 1.68, suggesting that its stock price is 68% more volatile than the S&P 500. Comparatively, Celgene has a beta of 1.77, suggesting that its stock price is 77% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Pernix Therapeutics and Celgene, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pernix Therapeutics 0 0 0 0 N/A
Celgene 1 11 18 1 2.61

Celgene has a consensus price target of $132.81, suggesting a potential upside of 25.18%. Given Celgene’s higher possible upside, analysts clearly believe Celgene is more favorable than Pernix Therapeutics.

Summary

Celgene beats Pernix Therapeutics on 13 of the 14 factors compared between the two stocks.

Pernix Therapeutics Company Profile

Pernix Therapeutics Holdings, Inc. is a specialty pharmaceutical company. The Company focuses on identifying, developing and commercializing differentiated products that address unmet medical needs. It focuses on underserved therapeutic areas, such as central nervous system (CNS), including neurology and psychiatry, as well as other specialty therapeutic areas. Its products include Treximet, indicated for acute migraine; Zohydro ER with BeadTek, an extended-release opioid agonist indicated for the management of pain severe; Silenor for the treatment of insomnia characterized by difficulty with sleep maintenance, and Khedezla for major depressive disorder. It promotes selected non-core branded products, such as its cough and cold products, through co-promotion arrangements with third-party sales organizations, and distributes its generic products through its subsidiaries, Macoven Pharmaceuticals, LLC (Macoven) and Cypress Pharmaceuticals, Inc.

Celgene Company Profile

Celgene Corporation is an integrated global biopharmaceutical company. The Company, together with its subsidiaries, is engaged in the discovery, development and commercialization of therapies for the treatment of cancer and inflammatory diseases through solutions in protein homeostasis, immuno-oncology, epigenetics, immunology and neuro-inflammation. Its commercial-stage products include REVLIMID (lenalidomide), POMALYST/IMNOVID (pomalidomide), OTEZLA (apremilast), ABRAXANE (paclitaxel albumin-bound particles for injectable suspension), VIDAZA, azacitidine for injection (generic version of VIDAZA) and THALOMID (thalidomide). Its clinical trial activity includes trials across the disease areas of hematology, solid tumors, and inflammation and immunology. The Company also markets ISTODAX, which is an epigenetic modifier. The Company is also evaluating AG-221 (enasidenib) in combination with VIDAZA in newly diagnosed acute myeloid leukemia with isocitrate dehydrogenase-2 mutations.

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