Heron Therapeutics (NASDAQ:HRTX – Get Free Report) and Perrigo (NYSE:PRGO – Get Free Report) are both small-cap healthcare companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, profitability and earnings.
Earnings and Valuation
This table compares Heron Therapeutics and Perrigo”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Heron Therapeutics | $154.90 million | 0.43 | -$20.19 million | ($0.19) | -1.83 |
| Perrigo | $4.14 billion | 0.48 | -$1.43 billion | ($12.51) | -1.14 |
Institutional & Insider Ownership
80.0% of Heron Therapeutics shares are owned by institutional investors. Comparatively, 95.9% of Perrigo shares are owned by institutional investors. 6.1% of Heron Therapeutics shares are owned by insiders. Comparatively, 0.4% of Perrigo shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Volatility and Risk
Heron Therapeutics has a beta of 1.62, indicating that its stock price is 62% more volatile than the S&P 500. Comparatively, Perrigo has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500.
Profitability
This table compares Heron Therapeutics and Perrigo’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Heron Therapeutics | -22.52% | -293.02% | -10.00% |
| Perrigo | -41.85% | 11.25% | 4.08% |
Analyst Ratings
This is a summary of recent ratings and price targets for Heron Therapeutics and Perrigo, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Heron Therapeutics | 1 | 3 | 1 | 0 | 2.00 |
| Perrigo | 1 | 4 | 1 | 0 | 2.00 |
Heron Therapeutics presently has a consensus target price of $2.00, suggesting a potential upside of 475.37%. Perrigo has a consensus target price of $19.33, suggesting a potential upside of 35.39%. Given Heron Therapeutics’ higher possible upside, research analysts plainly believe Heron Therapeutics is more favorable than Perrigo.
About Heron Therapeutics
Heron Therapeutics, Inc., a commercial-stage biotechnology company, focuses on enhancing the lives of patients by developing and commercializing therapeutic that enhances medical care. The company's product candidates utilize its proprietary Biochronomer, a drug delivery technology, which delivers therapeutic levels of a range of short-acting pharmacological agents over a period from days to weeks with a single administration. It offers SUSTOL (granisetron), an extended-release injection for the prevention of acute and delayed nausea and vomiting associated with moderately emetogenic chemotherapy, or anthracycline and cyclophosphamide combination chemotherapy regimens; and CINVANTI, an intravenous formulation of aprepitant, a substance P/neurokinin-1 receptor antagonist for the prevention of acute and delayed nausea and vomiting associated with highly emetogenic cancer chemotherapy, as well as nausea and vomiting associated with moderately emetogenic cancer chemotherapy. The company is also developing ZYNRELEF, a dual-acting local anesthetic that delivers a fixed-dose combination of the local anesthetic bupivacaine and a low dose of the nonsteroidal anti-inflammatory drug meloxicam; and APONVIE, an intravenous formulation of a substance P/neurokinin-1 receptor antagonist indicated for the prevention of postoperative nausea and vomiting in adults. The company was formerly known as A.P. Pharma, Inc. and changed its name to Heron Therapeutics, Inc. in January 2014. Heron Therapeutics, Inc. was founded in 1983 and is headquartered in San Diego, California.
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.
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