Shire (NASDAQ: SHPG) and Amphastar Pharmaceuticals (NASDAQ:AMPH) are both medical companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, profitability, dividends, risk, valuation, earnings and institutional ownership.
Insider and Institutional Ownership
20.3% of Shire shares are held by institutional investors. Comparatively, 44.1% of Amphastar Pharmaceuticals shares are held by institutional investors. 2.0% of Shire shares are held by insiders. Comparatively, 11.1% of Amphastar Pharmaceuticals shares are held 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.
Shire has a beta of 1.59, meaning that its stock price is 59% more volatile than the S&P 500. Comparatively, Amphastar Pharmaceuticals has a beta of 1.69, meaning that its stock price is 69% more volatile than the S&P 500.
Valuation & Earnings
This table compares Shire and Amphastar Pharmaceuticals’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Shire||$11.40 billion||3.78||$327.40 million||$5.34||26.85|
|Amphastar Pharmaceuticals||$255.16 million||3.30||$10.53 million||N/A||N/A|
Shire has higher revenue and earnings than Amphastar Pharmaceuticals.
This table compares Shire and Amphastar Pharmaceuticals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current recommendations and price targets for Shire and Amphastar Pharmaceuticals, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Shire presently has a consensus target price of $212.18, suggesting a potential upside of 48.01%. Amphastar Pharmaceuticals has a consensus target price of $20.83, suggesting a potential upside of 13.72%. Given Shire’s higher probable upside, analysts clearly believe Shire is more favorable than Amphastar Pharmaceuticals.
Shire pays an annual dividend of $0.92 per share and has a dividend yield of 0.6%. Amphastar Pharmaceuticals does not pay a dividend. Shire pays out 17.2% of its earnings in the form of a dividend.
Shire beats Amphastar Pharmaceuticals on 9 of the 15 factors compared between the two stocks.
Shire Company Profile
Shire plc is a biotech company focused on serving people with rare diseases and other specialized conditions. The Company’s segment is engaged in research, development, licensing, manufacturing, marketing, distribution and sale of specialist medicines. It focuses its development resources on projects in various therapeutic areas (TAs), including Neuroscience, Ophthalmology, Hematology, Oncology, Immunology, Gastrointestinal (GI)/Metabolic/Endocrinology Diseases. Its Hematology products include ADVATE (Antihemophilic Factor (Recombinant)), ADYNOVATE/ADYNOVI (Antihemophilic Factor (Recombinant), PEGylated)), RIXUBIS (Coagulation Factor IX (Recombinant)), VONVENDI (von Willebrand factor (Recombinant)) and FEIBA (Anti-Inhibitor Coagulant Complex). Its Genetic Diseases products include CINRYZE (C1 esterase inhibitor (human)), FIRAZYR (icatibant), ELAPRASE (idursulfase), REPLAGAL (agalsidase alfa) and VPRIV (velaglucerase alfa).
Amphastar Pharmaceuticals Company Profile
Amphastar Pharmaceuticals, Inc. is a specialty pharmaceutical company. The Company focuses primarily on developing, manufacturing, marketing and selling generic and injectable, inhalation and intranasal products. The Company has two segments: finished pharmaceutical products and active pharmaceutical ingredients (API) products. The finished pharmaceutical products segment manufactures, markets and distributes enoxaparin, Cortrosyn, Amphadase, naloxone, lidocaine jelly, as well as various other critical and non-critical care drugs. The API segment manufactures and distributes recombinant human insulin and porcine insulin. The Company also manufactures and sells insulin API. As of December 31, 2016, the Company manufactured and sold 19 products. As of December 31, 2016, the Company developed a portfolio of 15 generic abbreviated new drug applications (ANDAs) three generic biosimilar product candidates and six injectable and inhalation product candidates.
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