Analyzing Akorn (AKRX) and Celsius (CELH)

Akorn (NASDAQ: AKRX) and Celsius (NASDAQ:CELH) are both healthcare companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Valuation and Earnings

This table compares Akorn and Celsius’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Akorn $1.12 billion 3.65 $184.24 million $0.59 55.27
Celsius $22.76 million 10.68 -$3.06 million ($0.09) -59.11

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

Volatility & Risk

Akorn has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500. Comparatively, Celsius has a beta of -0.7, indicating that its share price is 170% less volatile than the S&P 500.

Profitability

This table compares Akorn and Celsius’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Akorn 7.79% 15.14% 6.51%
Celsius -10.37% -18.23% -12.52%

Analyst Ratings

This is a summary of recent recommendations for Akorn and Celsius, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Akorn 1 8 1 0 2.00
Celsius 0 0 1 0 3.00

Akorn currently has a consensus target price of $30.14, suggesting a potential downside of 7.57%. Celsius has a consensus target price of $7.00, suggesting a potential upside of 31.58%. Given Celsius’ stronger consensus rating and higher probable upside, analysts plainly believe Celsius is more favorable than Akorn.

Insider and Institutional Ownership

74.7% of Akorn shares are owned by institutional investors. Comparatively, 2.5% of Celsius shares are owned by institutional investors. 28.2% of Akorn shares are owned by insiders. Comparatively, 49.0% of Celsius shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Akorn beats Celsius on 8 of the 12 factors compared between the two stocks.

Akorn Company Profile

Akorn Inc. (Akorn), together with its subsidiaries, is a specialty generic pharmaceutical company that develops, manufactures and markets generic and branded prescription pharmaceuticals, as well as private-label over-the-counter (OTC) consumer health products and animal health pharmaceuticals. The Company operates through two segments: Prescription Pharmaceuticals and the Consumer Health. The Prescription Pharmaceuticals segment consists of generic and branded prescription pharmaceuticals in a range of dosage forms, including sterile ophthalmics, injectables and inhalants and non-sterile oral liquids, topicals and nasal sprays and otics. The Consumer Health segment consists of branded and private-label OTC products and animal health products dispensed by veterinary professionals. Its branded and private-label OTC products are focused on ophthalmics, including a dry eye treatment TheraTears Therapy for Your Eyes.

Celsius Company Profile

Celsius Holdings, Inc. is engaged in the development, marketing, sale and distribution of functional calorie-burning fitness beverages under the Celsius brand name. The Company’s product range includes Sparkling Grape Rush, Sparkling Watermelon, Sparkling Orange, Sparkling Wild Berry, Sparkling Cola, Raspberry Acai Green Tea, Peach Mango Green Tea, Flo Fusion Orange and Flo Fusion Berry. The Company’s products are sweetened with sucralose, which is suitable for consumers whose sugar intake is restricted. The Company’s Celsius brand uses ingredients and supplements, such as green tea (EGCG), ginger, calcium, chromium, B vitamins and vitamin C. The Company outsources the manufacturing process to third-party co-packers. It provides co-packers with flavors, ingredient blends, cans and other raw materials for its beverages purchased by it from various suppliers. It sells Celsius brand across retail segments, which include supermarkets and convenience stores.

Receive News & Ratings for Akorn Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Akorn Inc. and related companies with MarketBeat.com's FREE daily email newsletter.

Latest News

Leave a Reply