Imprimis Pharmaceuticals (NASDAQ: IMMY) and Ardelyx (NASDAQ:ARDX) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.
Institutional and Insider Ownership
12.6% of Imprimis Pharmaceuticals shares are held by institutional investors. Comparatively, 74.9% of Ardelyx shares are held by institutional investors. 12.6% of Imprimis Pharmaceuticals shares are held by insiders. Comparatively, 15.5% of Ardelyx 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.
This table compares Imprimis Pharmaceuticals and Ardelyx’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Imprimis Pharmaceuticals||$19.94 million||1.98||-$19.08 million||($0.92)||-2.09|
|Ardelyx||$24.03 million||14.74||-$112.38 million||($2.23)||-3.34|
Imprimis Pharmaceuticals has higher earnings, but lower revenue than Ardelyx. Ardelyx is trading at a lower price-to-earnings ratio than Imprimis Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations and price targets for Imprimis Pharmaceuticals and Ardelyx, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Imprimis Pharmaceuticals currently has a consensus price target of $5.00, indicating a potential upside of 160.42%. Ardelyx has a consensus price target of $13.67, indicating a potential upside of 83.45%. Given Imprimis Pharmaceuticals’ higher possible upside, equities analysts clearly believe Imprimis Pharmaceuticals is more favorable than Ardelyx.
Volatility & Risk
Imprimis Pharmaceuticals has a beta of -0.51, indicating that its stock price is 151% less volatile than the S&P 500. Comparatively, Ardelyx has a beta of 0.35, indicating that its stock price is 65% less volatile than the S&P 500.
This table compares Imprimis Pharmaceuticals and Ardelyx’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Ardelyx beats Imprimis Pharmaceuticals on 8 of the 12 factors compared between the two stocks.
Imprimis Pharmaceuticals Company Profile
Imprimis Pharmaceuticals, Inc. (Imprimis) is engaged in the development, production and dispensing of compounded pharmaceuticals. The Company operates through the business of developing drug therapies and providing such therapies through sterile and non-sterile pharmaceutical compounding services segment. The Company, through its Imprimis Cares program, owns, markets and dispenses a portfolio of compounded therapeutic in several therapeutic areas, including ophthalmology, urology, otolaryngology and infectious diseases. The Company is also developing Custom Compounding Choice business, which is focused on developing and dispensing a portfolio of non-proprietary compounded drugs for humans and animals in therapeutic areas that may be overlooked by commercial pharmaceutical companies. The Company also offers customizable compounding products that consist of sterile injectable and non-sterile integrative medicine therapies that are used in various therapeutic areas.
Ardelyx Company Profile
Ardelyx, Inc. is a clinical-stage biopharmaceutical company. The Company’s therapeutics focuses on addressing cardiorenal and gastrointestinal (GI) diseases. It operates through the research, development and commercialization of biopharmaceutical products segment. The Company’s products line includes cardiorenal portfolio and gastrointestinal portfolio. The Company’s cardiorenal portfolio includes two Phase III clinical product candidates, tenapanor in Phase III clinical development for treating hyperphosphatemia in end-stage renal disease (ESRD) patients on dialysis and RDX7675 in Phase III clinical development for treating hyperkalemia in chronic kidney disease (CKD) and heart failure patients. The cardiorenal portfolio includes tenapanor, RDX7675, RDX013 and RDX011. Its gastrointestinal portfolio is led by tenapanor for the treatment of irritable bowel syndrome with constipation (IBS-C). The gastrointestinal portfolio includes tenapanor, RDX8940, RDX011 and RDX023.
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