Eli Lilly and (NYSE: LLY) and Cadence Pharmaceuticals (NASDAQ:CADX) are both healthcare companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, profitability, institutional ownership, risk, dividends and earnings.

Dividends

Eli Lilly and pays an annual dividend of $2.08 per share and has a dividend yield of 2.4%. Cadence Pharmaceuticals does not pay a dividend. Eli Lilly and pays out 99.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cadence Pharmaceuticals has increased its dividend for 3 consecutive years.

Insider and Institutional Ownership

76.4% of Eli Lilly and shares are owned by institutional investors. 0.2% of Eli Lilly and shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Eli Lilly and and Cadence Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Eli Lilly and 9.90% 30.27% 10.82%
Cadence Pharmaceuticals N/A N/A N/A

Analyst Ratings

This is a summary of current recommendations for Eli Lilly and and Cadence Pharmaceuticals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eli Lilly and 1 5 9 0 2.53
Cadence Pharmaceuticals 0 0 0 0 N/A

Eli Lilly and currently has a consensus target price of $94.60, suggesting a potential upside of 10.66%.

Earnings & Valuation

This table compares Eli Lilly and and Cadence Pharmaceuticals’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Eli Lilly and $21.22 billion 4.44 $2.74 billion $2.10 40.71
Cadence Pharmaceuticals N/A N/A N/A N/A N/A

Eli Lilly and has higher revenue and earnings than Cadence Pharmaceuticals.

Summary

Eli Lilly and beats Cadence Pharmaceuticals on 8 of the 10 factors compared between the two stocks.

About Eli Lilly and

Eli Lilly and Company is engaged in drug manufacturing business. The Company discovers, develops, manufactures and markets products in two segments: human pharmaceutical products and animal health products. The Company’s human pharmaceutical business segment sells medicines, which are discovered or developed by its scientists. Its animal health business segment operates through the Company’s Elanco division, which develops, manufactures and markets products for both food animals and companion animals. The Company’s human pharmaceutical products include endocrinology products, neuroscience products, oncology products, immunology products and cardiovascular products. The Company’s animal health products segment includes products for food animals and products for companion animals. As of December 31, 2016, the Company manufactured and distributed its products through facilities in the United States, Puerto Rico and 14 other countries.

About Cadence Pharmaceuticals

Cadence Pharmaceuticals, Inc. (Cadence) is a biopharmaceutical company focused on acquiring, in-licensing, developing and commercializing products principally for use in the hospital setting. The Company has rights to one product, OFIRMEV (acetaminophen) injection, an intravenous (IV), formulation of acetaminophen. The Company in-licensed the United States, and Canadian rights to OFIRMEV from Bristol-Myers Squibb Company (BMS), which sells intravenous acetaminophen in Europe and other markets for the treatment of acute pain and fever under the brand name Perfalgan. In March 2014, Mallinckrodt Plc acquired Cadence Pharmaceuticals, Inc. In March 2014, Mallinckrodt Plc completed the acquisition of Cadence Pharmaceuticals.

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