Critical Comparison: Opko Health (OPK) and Pernix Therapeutics (PTX)

Opko Health (NASDAQ: OPK) and Pernix Therapeutics (NASDAQ:PTX) are both healthcare companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.

Analyst Recommendations

This is a summary of current recommendations and price targets for Opko Health and Pernix Therapeutics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Opko Health 0 2 5 0 2.71
Pernix Therapeutics 0 0 0 0 N/A

Opko Health presently has a consensus price target of $14.21, indicating a potential upside of 185.43%. Given Opko Health’s higher probable upside, equities analysts clearly believe Opko Health is more favorable than Pernix Therapeutics.

Risk & Volatility

Opko Health has a beta of 1.82, suggesting that its share price is 82% more volatile than the S&P 500. Comparatively, Pernix Therapeutics has a beta of 1.68, suggesting that its share price is 68% more volatile than the S&P 500.

Valuation & Earnings

This table compares Opko Health and Pernix Therapeutics’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Opko Health $1.22 billion 2.28 -$25.08 million ($0.19) -26.21
Pernix Therapeutics $140.86 million 0.22 -$169.59 million ($13.62) -0.19

Opko Health has higher revenue and earnings than Pernix Therapeutics. Opko Health is trading at a lower price-to-earnings ratio than Pernix Therapeutics, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

22.9% of Opko Health shares are held by institutional investors. Comparatively, 16.4% of Pernix Therapeutics shares are held by institutional investors. 40.2% of Opko Health shares are held by insiders. Comparatively, 1.4% of Pernix Therapeutics shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Opko Health and Pernix Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Opko Health -9.45% -5.17% -3.94%
Pernix Therapeutics -97.10% N/A -37.13%

Summary

Opko Health beats Pernix Therapeutics on 11 of the 13 factors compared between the two stocks.

Opko Health Company Profile

OPKO Health, Inc. is a healthcare company. Its segments include Pharmaceutical, Diagnostics and Corporate. Pharmaceutical consists of the pharmaceutical operations in Chile, Mexico, Ireland, Israel and Spain and its pharmaceutical research and development operations. Diagnostics consists of the clinical laboratory operations in Bio-Reference Laboratories (Bio-Reference) and its point-of-care operations. Through Bio-Reference, it operates laboratory divisions, such as Bio-Reference, GenPath (Oncology), GenPath (Women’s Health), GeneDx and Laboratorio Bueno Salud. As of December 31, 2016, it had one commercial stage pharmaceutical product and several pharmaceutical compounds and technologies in various stages of research and development for a range of indications and conditions, including Renal Products, Biologics, hGH-CTP, Factor VII, Oxyntomodulin, active pharmaceutical ingredients, Oligonucleotide Therapeutics, NK-1 Program, Asthma and chronic obstructive pulmonary disease.

Pernix Therapeutics Company Profile

Pernix Therapeutics Holdings, Inc. is a specialty pharmaceutical company. The Company focuses on identifying, developing and commercializing differentiated products that address unmet medical needs. It focuses on underserved therapeutic areas, such as central nervous system (CNS), including neurology and psychiatry, as well as other specialty therapeutic areas. Its products include Treximet, indicated for acute migraine; Zohydro ER with BeadTek, an extended-release opioid agonist indicated for the management of pain severe; Silenor for the treatment of insomnia characterized by difficulty with sleep maintenance, and Khedezla for major depressive disorder. It promotes selected non-core branded products, such as its cough and cold products, through co-promotion arrangements with third-party sales organizations, and distributes its generic products through its subsidiaries, Macoven Pharmaceuticals, LLC (Macoven) and Cypress Pharmaceuticals, Inc.

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