Biofrontera (NASDAQ:BFRI – Get Free Report) and Amneal Pharmaceuticals (NASDAQ:AMRX – Get Free Report) are both healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.
Analyst Recommendations
This is a summary of current ratings for Biofrontera and Amneal Pharmaceuticals, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Biofrontera | 1 | 1 | 1 | 0 | 2.00 |
| Amneal Pharmaceuticals | 0 | 1 | 8 | 0 | 2.89 |
Amneal Pharmaceuticals has a consensus target price of $19.57, suggesting a potential upside of 15.06%. Given Amneal Pharmaceuticals’ stronger consensus rating and higher possible upside, analysts clearly believe Amneal Pharmaceuticals is more favorable than Biofrontera.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Biofrontera | $41.71 million | 0.55 | -$10.54 million | ($0.45) | -3.44 |
| Amneal Pharmaceuticals | $3.02 billion | 1.80 | $72.06 million | $0.49 | 34.71 |
Amneal Pharmaceuticals has higher revenue and earnings than Biofrontera. Biofrontera is trading at a lower price-to-earnings ratio than Amneal Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Biofrontera and Amneal Pharmaceuticals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Biofrontera | -13.78% | -145.81% | -31.30% |
| Amneal Pharmaceuticals | 5.05% | -584.46% | 7.78% |
Volatility and Risk
Biofrontera has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500. Comparatively, Amneal Pharmaceuticals has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500.
Institutional and Insider Ownership
10.1% of Biofrontera shares are owned by institutional investors. Comparatively, 31.8% of Amneal Pharmaceuticals shares are owned by institutional investors. 8.1% of Biofrontera shares are owned by company insiders. Comparatively, 17.3% of Amneal Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Summary
Amneal Pharmaceuticals beats Biofrontera on 13 of the 14 factors compared between the two stocks.
About Biofrontera
Biofrontera Inc., a biopharmaceutical company, engages in the commercialization of pharmaceutical products for the treatment of dermatological conditions in the United States. The company's products are used for the treatment of actinic keratoses, which are pre-cancerous skin lesions, as well as impetigo, a bacterial skin infection. It offers Ameluz, a prescription drug for use in combination with the RhodoLED lamp series, for photodynamic therapy for the lesion-directed and field-directed treatment of actinic keratosis of mild-to-moderate severity on the face and scalp. The company also provides Xepi, a topical non-fluorinated quinolone that inhibits bacterial growth for the treatment of impetigo. The company was incorporated in 2015 and is headquartered in Woburn, Massachusetts.
About Amneal Pharmaceuticals
Amneal Pharmaceuticals, Inc., together with its subsidiaries, develops, manufactures, markets, and distributes generics, injectables, biosimilars, and specialty branded pharmaceutical products worldwide. The company operates through three segments: Generics, Specialty, and AvKARE. The Generics segment offers immediate and extended release oral solid, powder, liquid, sterile injectable, nasal spray, inhalation and respiratory, biosimilar, ophthalmic, film, transdermal patch, and topical products. The Specialty segment develops, promotes, sells, and distributes pharmaceutical products with focus on central nervous system disorders, including Parkinson's disease, and endocrine disorders. This segment also provides Rytary, an oral capsule formulation of carbidopa-levodopa to treat Parkinson's disease, post-encephalitic parkinsonism, and parkinsonism; Unithroid for the treatment of hypothyroidism; and IPX203, a pipeline product for Parkinson's disease. The AvKARE segment offers pharmaceuticals, medical and surgical products, and services primarily to governmental agencies, the Department of Defense, and the Department of Veterans Affairs. This segment also distributes bottle and unit dose pharmaceuticals under the AvKARE and AvPAK names; and packages and distributes pharmaceuticals and vitamins to its retail and institutional customers. It sells its products through wholesalers, distributors, hospitals, chain pharmacies, and individual pharmacies. The company was formerly known as Atlas Holdings, Inc. and changed its name to Amneal Pharmaceuticals, Inc. in 2018. Amneal Pharmaceuticals, Inc. was founded in 2002 and is headquartered in Bridgewater, New Jersey.
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