Reviewing Perrigo (NYSE:PRGO) & American Bio Medica (OTCMKTS:ABMC)

Perrigo (NYSE:PRGO) and American Bio Medica (OTCMKTS:ABMC) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Analyst Recommendations

This is a summary of current ratings and price targets for Perrigo and American Bio Medica, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Perrigo	1	4	1	0	2.00
American Bio Medica	0	0	0	0	0.00

Perrigo presently has a consensus target price of $19.33, indicating a potential upside of 94.79%. Given Perrigo’s stronger consensus rating and higher probable upside, analysts plainly believe Perrigo is more favorable than American Bio Medica.

Earnings & Valuation

This table compares Perrigo and American Bio Medica”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Perrigo	$4.25 billion	0.32	-$1.43 billion	($13.10)	-0.76
American Bio Medica	N/A	N/A	N/A	($0.02)	N/A

American Bio Medica has lower revenue, but higher earnings than Perrigo. Perrigo is trading at a lower price-to-earnings ratio than American Bio Medica, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

95.9% of Perrigo shares are owned by institutional investors. 0.4% of Perrigo shares are owned by company insiders. Comparatively, 3.1% of American Bio Medica shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Perrigo and American Bio Medica’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Perrigo	-43.50%	9.96%	3.90%
American Bio Medica	N/A	N/A	N/A

Summary

Perrigo beats American Bio Medica on 7 of the 10 factors compared between the two stocks.

About Perrigo

Perrigo Company plc provides over-the-counter health and wellness solutions to enhance individual well-being in the United States, Europe, and internationally. It operates through Consumer Self-Care Americas and Consumer Self-Care International segments. The company develops, manufactures, markets, and distributes self-care consumer products, such as upper respiratory products, including cough suppressants, expectorants, and sinus and allergy relief; nutrition products consisting of infant formulas and nutritional beverages; digestive health products, including antacids, anti-diarrheal, and anti-heartburn; pain and sleep-aids products comprising pain relievers and fever reducers; and oral care products, which include toothbrushes, toothbrush replacement heads, floss, flossers, whitening products, and toothbrush covers. It also offers healthy lifestyle products, such as smoking cessation, well-being, and weight management products; skin care products consisting of dermatological care, scar management, lice treatment, and other products for various skin conditions; women's health products comprising feminine hygiene and contraceptives; vitamins, minerals, and supplements; rare diseases business; and other miscellaneous self-care products. The company sells its products under the Compeed, Dr. Fresh, Firefly, Good Sense, Good Start, Mederma, Nasonex, Plackers, Prevacid24HR, REACH, Rembrandt, Steripod, Opill, Solpadeine, Coldrex, Physiomer, NiQuitin, ACO, ellaOne, Compeed Stops, XLS, Arterin, Davitamon, Apiserum, Abtei, and Nicorette brands. It also offers contract manufacturing services. The company sells its products through retail drug, supermarket, and mass merchandise chains; e-commerce stores; wholesalers; pharmacies; drug and grocery retailers; and para-pharmacies. The company was formerly known as Perrigo Company and changed its name to Perrigo Company plc in December 2013. Perrigo Company plc was founded in 1887 and is headquartered in Dublin, Ireland.

About American Bio Medica

American Bio Medica Corporation engages in manufacture and sale of lateral flow immunoassay tests primarily for the immediate detection of drugs in urine and oral fluids. Its drugs detection products in urine include Rapid Drug Screen, a rapid drug test, which detects the presence or absence of 2 to 10 drugs; RDS InCup, a drug-testing cup that detects the presence or absence of 1 to 12 drugs; Rapid TOX, a drug test in a cassette platform, which detects the presence or absence of 1 to 10 drugs; and Rapid TOX Cup II, a drug testing cup that detects the presence or absence of 1 to 16 drugs. The company also offers a test for the detection of respiratory syncytial virus; OralStat, a drug test for the detection of drugs in oral fluids, as well as private labeled versions of OralStat. In addition, the company distributes other products for the detection of substances of abuse, as well as products to detect certain infectious diseases. Further, it provides strip contract manufacturing, assembly, and packaging services to unaffiliated diagnostic companies. The company serves rehabilitation/drug treatment, pain management, other clinical, government, and employment/workplace markets. It operates in the United States, North America, Europe, the Asia Pacific, and South America. The company was formerly known as American Micro Media, Inc. and changed its name to American Bio Medica Corporation in September 1992. American Bio Medica Corporation was incorporated in 1986 and is based in Kinderhook, New York.