AMAG Pharmaceuticals (NASDAQ: AMAG) and Veru (NASDAQ:VERU) are both small-cap healthcare companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, institutional ownership, earnings, profitability and risk.
This table compares AMAG Pharmaceuticals and Veru’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
4.5% of Veru shares are owned by institutional investors. 3.8% of AMAG Pharmaceuticals shares are owned by company insiders. Comparatively, 37.0% of Veru shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares AMAG Pharmaceuticals and Veru’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|AMAG Pharmaceuticals||$532.09 million||0.92||-$2.48 million||($6.08)||-2.29|
|Veru||$13.66 million||5.17||-$6.61 million||($0.23)||-5.74|
AMAG Pharmaceuticals has higher revenue and earnings than Veru. Veru is trading at a lower price-to-earnings ratio than AMAG Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
AMAG Pharmaceuticals has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500. Comparatively, Veru has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500.
This is a breakdown of current ratings and price targets for AMAG Pharmaceuticals and Veru, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
AMAG Pharmaceuticals presently has a consensus price target of $19.75, suggesting a potential upside of 42.09%. Veru has a consensus price target of $5.00, suggesting a potential upside of 278.79%. Given Veru’s stronger consensus rating and higher possible upside, analysts clearly believe Veru is more favorable than AMAG Pharmaceuticals.
Veru beats AMAG Pharmaceuticals on 7 of the 13 factors compared between the two stocks.
About AMAG Pharmaceuticals
AMAG Pharmaceuticals, Inc. is a pharmaceutical company. The Company’s segment is the manufacture, development and commercialization of products and services for use in treating various conditions, with a focus on maternal health, anemia management and cancer supportive care. Its offerings focus on maternal health, anemia management and cancer supportive care, including its product, Makena (hydroxyprogesterone caproate injection); services related to the collection, processing and storage of umbilical cord blood stem cell and cord tissue units operated through Cord Blood Registry (CBR); its product, Feraheme (ferumoxytol), for intravenous (IV) use, and MuGard Mucoadhesive Oral Wound Rinse. It is engaged in the development of Digoxin immune fab, a polyclonal antibody for the treatment of severe preeclampsia in pregnant women. Makena is a drug indicated to reduce the risk of preterm birth in women pregnant with a single baby having a history of singleton spontaneous preterm birth.
Veru Inc., formerly The Female Health Company, is a therapeutics company focused on developing and commercializing pharmaceuticals and devices in men’s and women’s health and oncology. The Company is engaged in the development, manufacture and marketing of consumer healthcare products. The Company has three divisions: Pharmaceutical and Devices, Consumer Health Products and Public Sector. For men, product and product candidates are in the areas of benign prostatic hyperplasia, male infertility, amelioration of side effects of hormonal prostate cancer therapies, prostate cancer, gout and sexual dysfunction. Women’s Health has product candidates for female sexual health, and advanced breast and ovarian cancers. It manufactures, markets and sells the FC2 Female Condom. FC2 provides dual protection against unintended pregnancy and sexually transmitted infections (STIs), including human immunodeficiency virus/acquired immune deficiency syndrome (HIV/AIDS).
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