Contrasting Cumberland Pharmaceuticals (NASDAQ:CPIX) and Rigel Pharmaceuticals (NASDAQ:RIGL)

Cumberland Pharmaceuticals (NASDAQ:CPIX) and Rigel Pharmaceuticals (NASDAQ:RIGL) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, risk, dividends, earnings, institutional ownership, analyst recommendations and valuation.

Valuation & Earnings

This table compares Cumberland Pharmaceuticals and Rigel Pharmaceuticals”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cumberland Pharmaceuticals	$41.28 million	0.71	-$6.48 million	($0.24)	-8.19
Rigel Pharmaceuticals	$282.08 million	2.86	$17.49 million	$6.17	7.21

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

Insider & Institutional Ownership

15.5% of Cumberland Pharmaceuticals shares are held by institutional investors. Comparatively, 66.2% of Rigel Pharmaceuticals shares are held by institutional investors. 44.8% of Cumberland Pharmaceuticals shares are held by insiders. Comparatively, 9.0% of Rigel Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations and price targets for Cumberland Pharmaceuticals and Rigel Pharmaceuticals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cumberland Pharmaceuticals	1	0	0	0	1.00
Rigel Pharmaceuticals	0	3	3	1	2.71

Rigel Pharmaceuticals has a consensus target price of $43.20, suggesting a potential downside of 2.82%. Given Rigel Pharmaceuticals’ stronger consensus rating and higher possible upside, analysts plainly believe Rigel Pharmaceuticals is more favorable than Cumberland Pharmaceuticals.

Profitability

This table compares Cumberland Pharmaceuticals and Rigel Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cumberland Pharmaceuticals	-6.97%	7.48%	2.66%
Rigel Pharmaceuticals	36.51%	438.89%	57.03%

Volatility & Risk

Cumberland Pharmaceuticals has a beta of -0.46, indicating that its stock price is 146% less volatile than the S&P 500. Comparatively, Rigel Pharmaceuticals has a beta of 1.22, indicating that its stock price is 22% more volatile than the S&P 500.

Summary

Rigel Pharmaceuticals beats Cumberland Pharmaceuticals on 14 of the 15 factors compared between the two stocks.

About Cumberland Pharmaceuticals

Cumberland Pharmaceuticals Inc., a specialty pharmaceutical company, focuses on the acquisition, development, and commercialization of prescription products for hospital acute care, gastroenterology, and oncology in the United States and internationally. The company offers Acetadote, an injection for the treatment of acetaminophen poisoning; Caldolor, an injection for the treatment of pain and fever; Kristalose, a prescription laxative oral solution for the treatment of constipation; Omeclamox-Pak for the treatment of Helicobacter pylori infection and duodenal ulcer disease; Vaprisol, an injection for treating euvolemic and hypervolemic hyponatremia; Sancuso, an injection for the treatment of chemotherapy treatment; and Vibativ, an injection for the treatment of certain serious bacterial infections, including hospital-acquired and ventilator-associated bacterial pneumonia, as well as complicated skin and skin structure infections. It develops RediTrex injection for the treatment of active rheumatoid, juvenile idiopathic, and severe psoriatic arthritis, as well as disabling psoriasis. In addition, the company is developing ifetroban, a product candidate that is in phase II clinical trial for the treatment of aspirin-exacerbated respiratory disease, systemic sclerosis, and duchenne muscular dystrophy; and has completed phase II clinical trial for the treatment of hepatorenal syndrome and portal hypertension. Further, it develops a clinical program for the use of ifetroban to treat progressive fibrosing interstitial lung diseases. The company was incorporated in 1999 and is headquartered in Nashville, Tennessee.

About Rigel Pharmaceuticals

Rigel Pharmaceuticals, Inc., a biotechnology company, engages in discovering, developing, and providing therapies that enhance the lives of patients with hematologic disorders and cancer. The company’s commercialized products include Tavalisse, an oral spleen tyrosine kinase inhibitor for the treatment of adult patients with chronic immune thrombocytopenia; Rezlidhia, a non-intensive monotherapy for the treatment of adult patients with relapsed or refractory (R/R) acute myeloid leukemia (AML) with a susceptible isocitrate dehydrogenase-1 (IDH1) mutation as detected by an FDA-approved test; and GAVRETO, a once daily, small molecule, oral, kinase inhibitor for the treatment of adult patients with metastatic rearranged during transfection (RET) fusion-positive non-small cell lung cancer, as well as for the treatment of adult and pediatric patients 12 years of age and older with advanced or metastatic RET fusion-positive thyroid cancer. It also develops R289, an oral IRAK1/4 Inhibitor, which is in Phase 1b clinical trials for the treatment of hematology-oncology, autoimmune, and inflammatory diseases; and a receptor-interacting serine/threonine-protein kinase 1 (RIPK1) inhibitor program in clinical development with partner Eli Lilly and Company. In addition, the company has product candidates in clinical development with partners BerGenBio ASA and Daiichi Sankyo. The company has strategic development collaboration with The University of Texas MD Anderson Cancer Center for the development of REZLIDHIA (Olutasidenib) in acute myeloid leukemia (AML) and other hematologic cancers. The company was incorporated in 1996 and is headquartered in South San Francisco, California.