Contrasting Elanco Animal Health (NYSE:ELAN) & Scienture (NASDAQ:SCNX)

Scienture (NASDAQ:SCNX) and Elanco Animal Health (NYSE:ELAN) are both healthcare companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, risk, valuation, institutional ownership, profitability and dividends.

Analyst Recommendations

This is a summary of recent ratings for Scienture and Elanco Animal Health, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Scienture	1	0	1	0	2.00
Elanco Animal Health	1	2	8	1	2.75

Scienture presently has a consensus price target of $1.50, indicating a potential upside of 746.98%. Elanco Animal Health has a consensus price target of $29.70, indicating a potential upside of 36.35%. Given Scienture’s higher probable upside, research analysts clearly believe Scienture is more favorable than Elanco Animal Health.

Profitability

This table compares Scienture and Elanco Animal Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Scienture	N/A	-53.51%	-42.47%
Elanco Animal Health	-3.96%	8.13%	3.99%

Earnings & Valuation

This table compares Scienture and Elanco Animal Health”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Scienture	$430,000.00	16.91	-$41.51 million	($2.10)	-0.08
Elanco Animal Health	$4.71 billion	2.31	-$232.00 million	($0.41)	-53.13

Scienture has higher earnings, but lower revenue than Elanco Animal Health. Elanco Animal Health is trading at a lower price-to-earnings ratio than Scienture, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Scienture has a beta of 3.25, meaning that its stock price is 225% more volatile than the S&P 500. Comparatively, Elanco Animal Health has a beta of 1.68, meaning that its stock price is 68% more volatile than the S&P 500.

Insider & Institutional Ownership

5.7% of Scienture shares are owned by institutional investors. Comparatively, 97.5% of Elanco Animal Health shares are owned by institutional investors. 19.5% of Scienture shares are owned by company insiders. Comparatively, 1.1% of Elanco Animal Health shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Elanco Animal Health beats Scienture on 8 of the 15 factors compared between the two stocks.

About Scienture

Scienture Holdings, Inc. engages in the provision of health services and pharmaceutical products. It focuses on addressing underserved patients and indications through novel product concepts and innovation. The company was founded on July 15, 2005 and is headquartered in Lutz, FL.

About Elanco Animal Health

Elanco Animal Health Incorporated, an animal health company, innovates, develops, manufactures, and markets products for pets and farm animals. It offers pet health disease prevention products, such as parasiticide and vaccine products that protect pets from worms, fleas, and ticks under the Seresto, Advantage, Advantix, and Advocate brands; pet health therapeutics for pain, osteoarthritis, ear infections, cardiovascular, and dermatology indications in canines and felines under the Galliprant and Claro brands; vaccines, antibiotics, parasiticides, and other products for use in poultry and aquaculture production, as well as nutritional health products, including enzymes, probiotics, and prebiotics; and a range of vaccines, antibiotics, implants, parasiticides, and other products used in ruminant and swine production under the Rumensin and Baytril brands. The company sells its products to third-party distributors; veterinarians; and farm animal producers, including beef and dairy farmers, as well as pork, poultry, and aquaculture operations. Elanco Animal Health Incorporated was founded in 1954 and is headquartered in Greenfield, Indiana.