Tempest Therapeutics (NASDAQ:TPST – Get Free Report) and Amneal Pharmaceuticals (NASDAQ:AMRX – Get Free Report) are both medical companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, analyst recommendations and institutional ownership.
Profitability
This table compares Tempest Therapeutics and Amneal Pharmaceuticals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Tempest Therapeutics | N/A | -309.60% | -115.81% |
| Amneal Pharmaceuticals | 2.39% | -228.24% | 6.91% |
Earnings & Valuation
This table compares Tempest Therapeutics and Amneal Pharmaceuticals”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Tempest Therapeutics | N/A | N/A | -$26.26 million | ($6.64) | -0.30 |
| Amneal Pharmaceuticals | $3.02 billion | 1.45 | $72.06 million | $0.23 | 60.48 |
Amneal Pharmaceuticals has higher revenue and earnings than Tempest Therapeutics. Tempest Therapeutics is trading at a lower price-to-earnings ratio than Amneal Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Tempest Therapeutics has a beta of -2, suggesting that its share price is 300% less volatile than the S&P 500. Comparatively, Amneal Pharmaceuticals has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500.
Insider and Institutional Ownership
22.5% of Tempest Therapeutics shares are owned by institutional investors. Comparatively, 31.8% of Amneal Pharmaceuticals shares are owned by institutional investors. 6.3% of Tempest Therapeutics shares are owned by insiders. Comparatively, 17.3% of Amneal Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Tempest Therapeutics and Amneal Pharmaceuticals, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Tempest Therapeutics | 1 | 0 | 0 | 1 | 2.50 |
| Amneal Pharmaceuticals | 0 | 2 | 6 | 0 | 2.75 |
Amneal Pharmaceuticals has a consensus price target of $15.00, suggesting a potential upside of 7.84%. Given Amneal Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts plainly believe Amneal Pharmaceuticals is more favorable than Tempest Therapeutics.
Summary
Amneal Pharmaceuticals beats Tempest Therapeutics on 13 of the 14 factors compared between the two stocks.
About Tempest Therapeutics
Tempest Therapeutics, Inc., a clinical-stage oncology company, develops small molecule therapeutics that combine both tumor-targeted and immune-mediated mechanisms to treat various tumors. The company's two clinical programs are TPST-1495, a dual antagonist of EP2 and EP4, receptors of prostaglandin E2, which is in a Phase 1 trial to treat cancer; and TPST-1120, a selective antagonist of peroxisome proliferator-activated receptor alpha that is in a Phase 1 trial for the treatment of solid tumors. It also develops TREX-1, an enzyme that regulates cGAS/STING pathway signaling and immune recognition. Tempest Therapeutics, Inc. was incorporated in 2011 and is headquartered in Brisbane, California. Tempest Therapeutics, Inc. operates as a subsidiary of Inception Sciences, Inc.
About Amneal Pharmaceuticals
Amneal Pharmaceuticals, Inc., together with its subsidiaries, develops, manufactures, markets, and distributes generics, injectables, biosimilars, and specialty branded pharmaceutical products worldwide. The company operates through three segments: Generics, Specialty, and AvKARE. The Generics segment offers immediate and extended release oral solid, powder, liquid, sterile injectable, nasal spray, inhalation and respiratory, biosimilar, ophthalmic, film, transdermal patch, and topical products. The Specialty segment develops, promotes, sells, and distributes pharmaceutical products with focus on central nervous system disorders, including Parkinson's disease, and endocrine disorders. This segment also provides Rytary, an oral capsule formulation of carbidopa-levodopa to treat Parkinson's disease, post-encephalitic parkinsonism, and parkinsonism; Unithroid for the treatment of hypothyroidism; and IPX203, a pipeline product for Parkinson's disease. The AvKARE segment offers pharmaceuticals, medical and surgical products, and services primarily to governmental agencies, the Department of Defense, and the Department of Veterans Affairs. This segment also distributes bottle and unit dose pharmaceuticals under the AvKARE and AvPAK names; and packages and distributes pharmaceuticals and vitamins to its retail and institutional customers. It sells its products through wholesalers, distributors, hospitals, chain pharmacies, and individual pharmacies. The company was formerly known as Atlas Holdings, Inc. and changed its name to Amneal Pharmaceuticals, Inc. in 2018. Amneal Pharmaceuticals, Inc. was founded in 2002 and is headquartered in Bridgewater, New Jersey.
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