Critical Comparison: Akorn (AKRX) & XenoPort (XNPT)

Akorn (NASDAQ: AKRX) and XenoPort (NASDAQ:XNPT) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, profitability, dividends, valuation, analyst recommendations and earnings.

Institutional & Insider Ownership

73.4% of Akorn shares are held by institutional investors. 28.2% of Akorn shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Akorn and XenoPort, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Akorn 0 8 0 0 2.00
XenoPort 0 0 0 0 N/A

Akorn presently has a consensus price target of $30.20, suggesting a potential downside of 8.51%.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Akorn $1.12 billion 3.70 $184.24 million $0.99 33.34
XenoPort N/A N/A N/A ($1.21) N/A

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

Profitability

This table compares Akorn and XenoPort’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Akorn 7.79% 15.14% 6.51%
XenoPort -103.12% -414.36% -37.19%

Summary

Akorn beats XenoPort 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.

XenoPort Company Profile

XenoPort, Inc. is a biopharmaceutical company. The Company is focused on commercializing HORIZANT (gabapentin enacarbil) Extended-Release Tablets in the United States. The Company’s segment is the development and commercialization of product candidates for the treatment of neurological and other disorders. Its development-stage product candidates include XP23829, XP21279 and arbaclofen placarbil. HORIZANT has been approved by the United States Food and Drug Administration for the treatment of moderate-to-severe primary restless legs syndrome in adults and for the management of postherpetic neuralgia in adults. XP23829 is a fumaric acid ester compound and a prodrug of metabolite monomethyl fumarate being developed for the treatment for patients with moderate-to-severe chronic plaque-type psoriasis and/or patients with relapsing forms of multiple sclerosis. XP21279 is a Transported Prodrug of levodopa being developed for the treatment for patients with idiopathic Parkinson’s disease.

Receive News & Ratings for Akorn Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Akorn and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply