Perrigo (NYSE:PRGO – Get Free Report) and Eton Pharmaceuticals (NASDAQ:ETON – Get Free Report) are both small-cap healthcare companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, analyst recommendations, earnings and valuation.
Insider and Institutional Ownership
95.9% of Perrigo shares are owned by institutional investors. Comparatively, 27.9% of Eton Pharmaceuticals shares are owned by institutional investors. 0.4% of Perrigo shares are owned by insiders. Comparatively, 16.5% of Eton Pharmaceuticals shares are owned 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.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Perrigo and Eton Pharmaceuticals, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Perrigo | 1 | 4 | 1 | 0 | 2.00 |
| Eton Pharmaceuticals | 1 | 1 | 4 | 0 | 2.50 |
Profitability
This table compares Perrigo and Eton Pharmaceuticals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Perrigo | -41.85% | 11.25% | 4.08% |
| Eton Pharmaceuticals | 12.02% | 40.13% | 12.37% |
Volatility & Risk
Perrigo has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500. Comparatively, Eton Pharmaceuticals has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500.
Earnings & Valuation
This table compares Perrigo and Eton Pharmaceuticals”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Perrigo | $4.14 billion | 0.45 | -$1.43 billion | ($12.51) | -1.08 |
| Eton Pharmaceuticals | $79.95 million | 20.40 | -$4.60 million | $0.38 | 150.18 |
Eton Pharmaceuticals has lower revenue, but higher earnings than Perrigo. Perrigo is trading at a lower price-to-earnings ratio than Eton Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Summary
Eton Pharmaceuticals beats Perrigo on 11 of the 14 factors compared between the two stocks.
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.
About Eton Pharmaceuticals
Eton Pharmaceuticals, Inc., a specialty pharmaceutical company, focuses on developing, acquiring, and commercializing pharmaceutical products for rare diseases. The company offers ALKINDI SPRINKLE, a replacement therapy for adrenocortical insufficiency in children under 17 years of age; Carglumic Acid for the treatment of acute and chronic hyperammonemia due to N-acetylglutamate Synthase deficiency; Betaine Anhydrous for the treatment of homocystinuria; and Nitisinone for the treatment of tyrosinemia type 1. It also provides Zeneo hydrocortisone autoinjector for the treatment of adrenal crisis. Eton Pharmaceuticals, Inc. was incorporated in 2017 and is based in Deer Park, Illinois.
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