Comparing Heron Therapeutics (NASDAQ:HRTX) & ANI Pharmaceuticals (NASDAQ:ANIP)

Heron Therapeutics (NASDAQ:HRTX) and ANI Pharmaceuticals (NASDAQ:ANIP) are both small-cap healthcare companies, but which is the superior business? We will compare the two companies based on the strength of their risk, institutional ownership, earnings, profitability, dividends, valuation and analyst recommendations.

Profitability

This table compares Heron Therapeutics and ANI Pharmaceuticals’ 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%
ANI Pharmaceuticals	11.07%	27.37%	10.47%

Insider and Institutional Ownership

80.0% of Heron Therapeutics shares are owned by institutional investors. Comparatively, 76.0% of ANI Pharmaceuticals shares are owned by institutional investors. 6.1% of Heron Therapeutics shares are owned by insiders. Comparatively, 8.1% of ANI Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Heron Therapeutics has a beta of 1.61, suggesting that its share price is 61% more volatile than the S&P 500. Comparatively, ANI Pharmaceuticals has a beta of 0.45, suggesting that its share price is 55% less volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Heron Therapeutics	$154.90 million	0.36	-$20.19 million	($0.19)	-1.55
ANI Pharmaceuticals	$883.37 million	1.92	$78.34 million	$4.64	15.95

ANI Pharmaceuticals has higher revenue and earnings than Heron Therapeutics. Heron Therapeutics 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 summary of current recommendations and price targets for Heron Therapeutics and ANI Pharmaceuticals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Heron Therapeutics	1	3	1	0	2.00
ANI Pharmaceuticals	0	5	3	0	2.38

Heron Therapeutics presently has a consensus target price of $2.00, suggesting a potential upside of 579.81%. ANI Pharmaceuticals has a consensus target price of $98.00, suggesting a potential upside of 32.43%. Given Heron Therapeutics’ higher probable upside, equities research analysts clearly believe Heron Therapeutics is more favorable than ANI Pharmaceuticals.

Summary

ANI Pharmaceuticals beats Heron Therapeutics on 11 of the 14 factors compared between the two stocks.

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 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.