Analyzing ANI Pharmaceuticals (NASDAQ:ANIP) and Rafael (NYSE:RFL)

Rafael (NYSE:RFL) and ANI Pharmaceuticals (NASDAQ:ANIP) are both small-cap healthcare companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.

Profitability

This table compares Rafael and ANI Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rafael	-3,321.74%	-41.27%	-35.32%
ANI Pharmaceuticals	11.07%	27.37%	10.47%

Risk & Volatility

Rafael has a beta of 0.4, meaning that its stock price is 60% less volatile than the S&P 500. Comparatively, ANI Pharmaceuticals has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500.

Institutional & Insider Ownership

11.3% of Rafael shares are owned by institutional investors. Comparatively, 76.0% of ANI Pharmaceuticals shares are owned by institutional investors. 32.9% of Rafael shares are owned by company insiders. Comparatively, 8.1% of ANI Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Rafael and ANI Pharmaceuticals”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rafael	$920,000.00	116.15	-$30.52 million	($0.68)	-3.02
ANI Pharmaceuticals	$883.37 million	2.04	$78.34 million	$4.64	16.89

ANI Pharmaceuticals has higher revenue and earnings than Rafael. Rafael is trading at a lower price-to-earnings ratio than ANI Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Rafael and ANI Pharmaceuticals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rafael	1	0	0	0	1.00
ANI Pharmaceuticals	0	4	4	0	2.50

ANI Pharmaceuticals has a consensus price target of $103.00, suggesting a potential upside of 31.39%. Given ANI Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts clearly believe ANI Pharmaceuticals is more favorable than Rafael.

Summary

ANI Pharmaceuticals beats Rafael on 12 of the 14 factors compared between the two stocks.

About Rafael

Rafael Holdings, Inc. primarily engages in holding interests in clinical and early-stage pharmaceutical companies, and commercial real estate assets in the United States and Israel. It operates in two segments, Healthcare and Real Estate. The company engages in the development and commercialization of therapies that exploit the metabolic differences between normal cells and cancer cells. Its lead drug candidate is CPI-613 (devimistat), currently under Phase III clinical study for the treatment of metastatic pancreatic cancer and acute myeloid leukemia. The company is also involved in developing Promitil, a molecule designed for the targeted delivery of mitomycin-C in a proprietary prodrug form, completed Phase 1B clinical studies; Folate-targeted Promitil (Promi-Fol) which is aimed at local treatment (intravesical) of superficial bladder cancer; and Promi-Dox, a highly potent dual drug liposome with MLP and doxorubicin targeting a potential basket of tumors. In addition, it engages in the development of surgical and procedural devices, including orthopedic arthroscopy instrumentation. Rafael Holdings, Inc. was incorporated in 2017 and is headquartered in Newark, New Jersey.

About ANI Pharmaceuticals

ANI Pharmaceuticals, Inc., a biopharmaceutical company, develops, manufactures, and markets branded and generic prescription pharmaceuticals in the United States and Canada. The company manufactures oral solid dose products; semi-solids, liquids, and topicals; controlled substances; and potent products, as well as performs contract development and manufacturing of pharmaceutical products. It markets its products through retail pharmacy chains, wholesalers, distributors and mail order pharmacies, group purchasing organizations, specialty pharmacies, and hospitals. ANI Pharmaceuticals, Inc. was incorporated in 2001 and is headquartered in Baudette, Minnesota.