Palatin Technologies (PINK:PTNT) and Akorn (OTCMKTS:AKRXQ) Critical Comparison

Palatin Technologies (PINK:PTNT) and Akorn (OTCMKTS:AKRXQ) are both small-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, risk, valuation, dividends, earnings and analyst recommendations.

Institutional & Insider Ownership

11.5% of Palatin Technologies shares are owned by institutional investors. 7.1% of Palatin Technologies shares are owned by company insiders. Comparatively, 3.9% of Akorn shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Palatin Technologies and Akorn, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Palatin Technologies	0	0	1	0	3.00
Akorn	0	0	0	0	0.00

Palatin Technologies presently has a consensus price target of $350.00, indicating a potential upside of 6,150.00%. Given Palatin Technologies’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Palatin Technologies is more favorable than Akorn.

Profitability

This table compares Palatin Technologies and Akorn’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Palatin Technologies	N/A	N/A	-365.57%
Akorn	N/A	N/A	N/A

Earnings & Valuation

This table compares Palatin Technologies and Akorn”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Palatin Technologies	$4.49 million	32.44	-$29.74 million	($1.55)	-3.61
Akorn	$682.43 million	0.01	-$226.77 million	N/A	N/A

Palatin Technologies has higher earnings, but lower revenue than Akorn.

Summary

Palatin Technologies beats Akorn on 7 of the 9 factors compared between the two stocks.

About Palatin Technologies

Palatin Technologies, Inc., a biopharmaceutical company, develops targeted receptor-specific therapeutics for the treatment of various diseases in the United States. The company's lead product is Vyleesi, a melanocortin receptor (MCr) agonist for the treatment of premenopausal women with hypoactive sexual desire disorder. It is also developing oral PL8177, a selective MC1r agonist peptide that is in Phase 2 clinical trial for the treatment of inflammatory bowel diseases. In addition, the company engages in the development of PL9643, a peptide melanocortin agonist active at multiple MCrs, including MC1r and MC5r for anti-inflammatory ocular indications, such as dry eye disease, which is in Phase 3 clinical trial; and melanocortin peptides for diabetic retinopathy. Further, it is developing PL8177, an oral peptide formulation for treatment of ulcerative colitis, which entered Phase 2 clinical trials. The company was founded in 1986 and is based in Cranbury, New Jersey.

About Akorn

Akorn, Inc., a specialty pharmaceutical company, develops, manufactures, and markets generic and branded prescription pharmaceuticals, over-the-counter (OTC) consumer health products, and animal health pharmaceuticals in the United States and internationally. The company operates in two segments, Prescription Pharmaceuticals and Consumer Health. The Prescription Pharmaceuticals segment offers generic and branded prescription pharmaceuticals in various dosage forms, including sterile ophthalmics, injectables, and inhalants; and non-sterile oral liquids, topicals, nasal sprays, and otics. Its primary products include Akten, a topical ocular anesthetic gel; AzaSite, an antibiotic used to treat bacterial conjunctivitis; Cosopt, Cosopt PF, Betimol, and Zioptan, which are used in the treatment of glaucoma; and Xopenex inhalation solution used in the treatment or prevention of bronchospasm. The Consumer Health segment manufactures and markets OTC products for the treatment of dry eye under the TheraTears brand. It also markets other OTC consumer health products comprising Mag-Ox, a magnesium supplement; and the Diabetic Tussin line of cough and cold products. In addition, this segment offers a portfolio of animal health products, such as Anased and VetaKet veterinary sedatives; Tolazine and Yobine sedative reversing agents; and Butorphic, a pain reliever. Further, the company sells its products to wholesale distributors. Akorn, Inc. was founded in 1971 and is headquartered in Lake Forest, Illinois. On May 20, 2020, Akorn, Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware.