Analyzing Cardinal Health (NYSE:CAH) & Spotlight Innovation (OTCMKTS:STLT)

Spotlight Innovation (OTCMKTS:STLT) and Cardinal Health (NYSE:CAH) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, dividends, risk, valuation, profitability, analyst recommendations and institutional ownership.

Profitability

This table compares Spotlight Innovation and Cardinal Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Spotlight Innovation	N/A	N/A	N/A
Cardinal Health	0.68%	-84.37%	4.19%

Analyst Recommendations

This is a summary of current ratings and target prices for Spotlight Innovation and Cardinal Health, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Spotlight Innovation	0	0	0	0	0.00
Cardinal Health	0	3	13	0	2.81

Cardinal Health has a consensus target price of $209.00, indicating a potential upside of 5.64%. Given Cardinal Health’s stronger consensus rating and higher probable upside, analysts clearly believe Cardinal Health is more favorable than Spotlight Innovation.

Insider and Institutional Ownership

87.2% of Cardinal Health shares are held by institutional investors. 0.1% of Cardinal Health shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Spotlight Innovation and Cardinal Health”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Spotlight Innovation	N/A	N/A	N/A	N/A	N/A
Cardinal Health	$222.58 billion	0.21	$1.56 billion	$6.63	29.84

Cardinal Health has higher revenue and earnings than Spotlight Innovation.

Summary

Cardinal Health beats Spotlight Innovation on 8 of the 9 factors compared between the two stocks.

About Spotlight Innovation

Spotlight Innovation Inc., a pharmaceutical company, acquires and develops proprietary therapies to address unmet medical needs with an emphasis on rare, emerging, and neglected diseases. It identifies in-licensing opportunities and manages product development through partnerships with universities, medical schools, contract research organizations, and contract manufacturing organizations, as well as pursues product commercialization opportunities, including out-licensing and strategic partnerships. The company is developing Crotoxin, which is in Phase I clinical study for the treatment of cancer. It also develops various compounds for the treatment of viral infections, including Zika virus infection; and products derived from cobra venom to treat chronic pain. Spotlight Innovation Inc. has a license agreement with Indiana University Research and Technology Corporation to commercialize STL-182, an orally-available small molecule that might have therapeutic potential for treating spinal muscular atrophy. The company is based in Urbandale, Iowa.

About Cardinal Health

Cardinal Health, Inc. operates as a healthcare services and products company in the United States, Canada, Europe, Asia, and internationally. It provides customized solutions for hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories, physician offices, and patients in the home. The company operates in two segments, Pharmaceutical and Medical. The Pharmaceutical segment distributes branded and generic pharmaceutical, specialty pharmaceutical, and over-the-counter healthcare and consumer products. The segment also provides services to pharmaceutical manufacturers and healthcare providers for specialty pharmaceutical products; operates nuclear pharmacies and radiopharmaceutical manufacturing facilities; repackages generic pharmaceuticals and over-the-counter healthcare products; and provides pharmacy management services to hospitals. The Medical segment manufactures, sources, and distributes Cardinal Health branded medical, surgical, and laboratory products and devices that include exam and surgical gloves; needles, syringe, and sharps disposals; compressions; incontinences; nutritional delivery products; wound care products; single-use surgical drapes, gowns, and apparels; fluid suction and collection systems; urology products; operating room supply products; and electrode product lines. The segment also distributes a range of national brand products, including medical, surgical, and laboratory products; provides supply chain services and solutions to hospitals, ambulatory surgery centers, clinical laboratories, and other healthcare providers; and assembles and sells sterile, and non-sterile procedure kits. The company was incorporated in 1979 and is headquartered in Dublin, Ohio.