Amneal Pharmaceuticals (NASDAQ:AMRX – Get Free Report) and Inotiv (NASDAQ:NOTV – Get Free Report) are both medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, valuation, analyst recommendations, institutional ownership and risk.
Institutional and Insider Ownership
31.8% of Amneal Pharmaceuticals shares are held by institutional investors. Comparatively, 18.2% of Inotiv shares are held by institutional investors. 17.5% of Amneal Pharmaceuticals shares are held by insiders. Comparatively, 7.8% of Inotiv shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares Amneal Pharmaceuticals and Inotiv’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Amneal Pharmaceuticals | 2.39% | -228.24% | 6.91% |
| Inotiv | -13.50% | -28.95% | -5.22% |
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Amneal Pharmaceuticals | $3.02 billion | 1.24 | $72.06 million | $0.23 | 51.91 |
| Inotiv | $513.02 million | 0.02 | -$68.62 million | ($2.03) | -0.18 |
Amneal Pharmaceuticals has higher revenue and earnings than Inotiv. Inotiv is trading at a lower price-to-earnings ratio than Amneal Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current ratings and target prices for Amneal Pharmaceuticals and Inotiv, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Amneal Pharmaceuticals | 0 | 1 | 5 | 1 | 3.00 |
| Inotiv | 1 | 0 | 1 | 0 | 2.00 |
Amneal Pharmaceuticals presently has a consensus price target of $14.20, suggesting a potential upside of 18.93%. Inotiv has a consensus price target of $1.50, suggesting a potential upside of 315.17%. Given Inotiv’s higher possible upside, analysts clearly believe Inotiv is more favorable than Amneal Pharmaceuticals.
Risk and Volatility
Amneal Pharmaceuticals has a beta of 1.34, meaning that its share price is 34% more volatile than the S&P 500. Comparatively, Inotiv has a beta of 4.22, meaning that its share price is 322% more volatile than the S&P 500.
Summary
Amneal Pharmaceuticals beats Inotiv on 12 of the 15 factors compared between the two stocks.
About Amneal Pharmaceuticals
Amneal Pharmaceuticals, Inc., together with its subsidiaries, develops, manufactures, markets, and distributes generics, injectables, biosimilars, and specialty branded pharmaceutical products worldwide. The company operates through three segments: Generics, Specialty, and AvKARE. The Generics segment offers immediate and extended release oral solid, powder, liquid, sterile injectable, nasal spray, inhalation and respiratory, biosimilar, ophthalmic, film, transdermal patch, and topical products. The Specialty segment develops, promotes, sells, and distributes pharmaceutical products with focus on central nervous system disorders, including Parkinson's disease, and endocrine disorders. This segment also provides Rytary, an oral capsule formulation of carbidopa-levodopa to treat Parkinson's disease, post-encephalitic parkinsonism, and parkinsonism; Unithroid for the treatment of hypothyroidism; and IPX203, a pipeline product for Parkinson's disease. The AvKARE segment offers pharmaceuticals, medical and surgical products, and services primarily to governmental agencies, the Department of Defense, and the Department of Veterans Affairs. This segment also distributes bottle and unit dose pharmaceuticals under the AvKARE and AvPAK names; and packages and distributes pharmaceuticals and vitamins to its retail and institutional customers. It sells its products through wholesalers, distributors, hospitals, chain pharmacies, and individual pharmacies. The company was formerly known as Atlas Holdings, Inc. and changed its name to Amneal Pharmaceuticals, Inc. in 2018. Amneal Pharmaceuticals, Inc. was founded in 2002 and is headquartered in Bridgewater, New Jersey.
About Inotiv
Inotiv, Inc. provides nonclinical and analytical drug discovery and development services to the pharmaceutical and medical device industries. It operates through two segment: Discovery and Safety Assessment (DSA), and Research Models and Services (RMS). The DMS segment manufactured scientific instruments for life sciences research and the related software for use by pharmaceutical companies, universities, government research centers, and medical research institutions under the Company's BASi product line. The RMS segment engages in commercial production and sales of research models, diets, bedding, and bioproducts. The company offers research and discovery services, including computational toxicology, disease pharmacology, DMPK, safety pharmacology, discovery bioanalysis, exploratory, surgical models and medical device, and cell and molecular biology; non-clinical safety assessment includes general and genetic toxicology, regulated bioanalysis, carcinogenicity studies, and development and reproductive toxicology; pathology services, such as histology, digital, clinical, and medical device pathology; bioanalysis includes nonregulated discovery bioanalysis, biotherapeutics, and regulated preclinical and clinical bioanalysis; proteomics; and consulting services, as well as model and research services. The company operates in the United States, the Netherlands, and internationally. The company was formerly known as Bioanalytical Systems, Inc. and changed its name to Inotiv, Inc. in March 2021. Inotiv, Inc. was incorporated in 1974 and is headquartered in West Lafayette, Indiana.
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