United-Guardian (NASDAQ:UG – Get Free Report) and Perrigo (NYSE:PRGO – Get Free Report) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, risk, analyst recommendations, dividends, institutional ownership and profitability.
Earnings and Valuation
This table compares United-Guardian and Perrigo”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| United-Guardian | $12.18 million | 2.37 | $3.25 million | $0.43 | 14.65 |
| Perrigo | $4.25 billion | 0.36 | -$1.43 billion | ($10.28) | -1.07 |
Dividends
United-Guardian pays an annual dividend of $0.50 per share and has a dividend yield of 7.9%. Perrigo pays an annual dividend of $1.16 per share and has a dividend yield of 10.6%. United-Guardian pays out 116.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Perrigo pays out -11.3% of its earnings in the form of a dividend. United-Guardian has raised its dividend for 1 consecutive years and Perrigo has raised its dividend for 23 consecutive years. Perrigo is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Analyst Ratings
This is a breakdown of recent ratings for United-Guardian and Perrigo, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| United-Guardian | 1 | 0 | 0 | 0 | 1.00 |
| Perrigo | 1 | 4 | 1 | 0 | 2.00 |
Perrigo has a consensus target price of $19.33, indicating a potential upside of 76.16%. Given Perrigo’s stronger consensus rating and higher probable upside, analysts plainly believe Perrigo is more favorable than United-Guardian.
Risk and Volatility
United-Guardian has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500. Comparatively, Perrigo has a beta of 0.41, indicating that its stock price is 59% less volatile than the S&P 500.
Insider and Institutional Ownership
23.2% of United-Guardian shares are held by institutional investors. Comparatively, 95.9% of Perrigo shares are held by institutional investors. 29.0% of United-Guardian shares are held by insiders. Comparatively, 0.7% of Perrigo shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Profitability
This table compares United-Guardian and Perrigo’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| United-Guardian | 19.48% | 17.51% | 15.04% |
| Perrigo | -33.51% | 9.41% | 3.97% |
Summary
United-Guardian beats Perrigo on 9 of the 17 factors compared between the two stocks.
About United-Guardian
United-Guardian, Inc. manufactures and markets cosmetic ingredients, pharmaceuticals, medical lubricants, and proprietary specialty industrial products in the United States and internationally The company offers cosmetic ingredients, including LUBRAJEL, a line of water-based gel formulation for sensory enhancement, lubrication, and texture to personal care products; LUBRAJEL NATURAL for skin moisturizing; LUBRAJEL MARINE that develops natural products using naturally derived polymers; LUBRAJEL OlL NATURAL, which makes luxuriant textures without adding viscosity; LUBRAJEL TERRA, a multifunctional, moisturizing hydrogel products; LUBRASIL II SB, a formulation of LUBRAJEL; LUBRAJEL II XD; B-122, a powdered lubricant used in the manufacture of pressed powders, eyeliners, rouges, and industrial products; and ORCHID COMPLEX, an oil-soluble base for extract of fresh orchids used in fragrance products, such as perfumes and toiletries. Its medical lubricants comprise LUBRAJEL RR and RC, which are water-based lubricant gels for urinary catheters; LUBRAJEL MG to lubricate urinary catheters, pre-lubricated enema tips, and other medical devices; LUBRAJEL MGL, a medical lubricant with a lower viscosity medical lubricant; LUBRAJEL LC, LUBRAJEL BA, and LUBRAJEL FA, which are formulations for oral care; and LUBRAJEL FLUID to lubricate water-soluble products. The company's pharmaceutical products consist of RENACIDIN, a prescription drug to prevent and dissolve calcifications in urethral catheters and the urinary bladder; and CLORPACTIN WCS-90, an antimicrobial used in urology. Its industrial products include DESELEX, a sequestering and chelating agent used for manufacturing detergents; and THOROCLENS, a chlorine-based industrial cleanser. The company also conducts research and product development of cosmetic ingredients. The company was founded in 1942 and is based in Hauppauge, New York.
About Perrigo
Perrigo Company plc provides over-the-counter health and wellness solutions to enhance individual well-being in the United States, Europe, and internationally. It operates through Consumer Self-Care Americas and Consumer Self-Care International segments. The company develops, manufactures, markets, and distributes self-care consumer products, such as upper respiratory products, including cough suppressants, expectorants, and sinus and allergy relief; nutrition products consisting of infant formulas and nutritional beverages; digestive health products, including antacids, anti-diarrheal, and anti-heartburn; pain and sleep-aids products comprising pain relievers and fever reducers; and oral care products, which include toothbrushes, toothbrush replacement heads, floss, flossers, whitening products, and toothbrush covers. It also offers healthy lifestyle products, such as smoking cessation, well-being, and weight management products; skin care products consisting of dermatological care, scar management, lice treatment, and other products for various skin conditions; women's health products comprising feminine hygiene and contraceptives; vitamins, minerals, and supplements; rare diseases business; and other miscellaneous self-care products. The company sells its products under the Compeed, Dr. Fresh, Firefly, Good Sense, Good Start, Mederma, Nasonex, Plackers, Prevacid24HR, REACH, Rembrandt, Steripod, Opill, Solpadeine, Coldrex, Physiomer, NiQuitin, ACO, ellaOne, Compeed Stops, XLS, Arterin, Davitamon, Apiserum, Abtei, and Nicorette brands. It also offers contract manufacturing services. The company sells its products through retail drug, supermarket, and mass merchandise chains; e-commerce stores; wholesalers; pharmacies; drug and grocery retailers; and para-pharmacies. The company was formerly known as Perrigo Company and changed its name to Perrigo Company plc in December 2013. Perrigo Company plc was founded in 1887 and is headquartered in Dublin, Ireland.
Receive News & Ratings for United-Guardian Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for United-Guardian and related companies with MarketBeat.com's FREE daily email newsletter.
