Financial Contrast: Bristol Myers Squibb (NYSE:BMY) versus Lipocine (NASDAQ:LPCN)

Lipocine (NASDAQ:LPCN) and Bristol Myers Squibb (NYSE:BMY) are both healthcare companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, risk, earnings, institutional ownership, analyst recommendations, valuation and profitability.

Institutional & Insider Ownership

9.1% of Lipocine shares are held by institutional investors. Comparatively, 76.4% of Bristol Myers Squibb shares are held by institutional investors. 4.7% of Lipocine shares are held by company insiders. Comparatively, 0.1% of Bristol Myers Squibb shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk and Volatility

Lipocine has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500. Comparatively, Bristol Myers Squibb has a beta of 0.2, suggesting that its share price is 80% less volatile than the S&P 500.

Profitability

This table compares Lipocine and Bristol Myers Squibb’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lipocine	-755.39%	-64.75%	-57.62%
Bristol Myers Squibb	18.47%	60.48%	14.45%

Earnings and Valuation

This table compares Lipocine and Bristol Myers Squibb”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lipocine	$1.98 million	6.10	-$9.63 million	($1.79)	-0.82
Bristol Myers Squibb	$48.19 billion	2.68	$7.05 billion	$4.51	14.03

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

Analyst Ratings

This is a breakdown of current ratings and price targets for Lipocine and Bristol Myers Squibb, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lipocine	1	1	1	0	2.00
Bristol Myers Squibb	1	16	11	2	2.47

Lipocine presently has a consensus target price of $4.00, indicating a potential upside of 173.04%. Bristol Myers Squibb has a consensus target price of $65.46, indicating a potential upside of 3.44%. Given Lipocine’s higher probable upside, research analysts plainly believe Lipocine is more favorable than Bristol Myers Squibb.

Summary

Bristol Myers Squibb beats Lipocine on 11 of the 15 factors compared between the two stocks.

About Lipocine

Lipocine Inc., a clinical-stage biopharmaceutical company, engages in the research and development for the delivery of drugs for the treatment of central nervous system (CNS) disorders. Its lead product candidate is TLANDO, an oral testosterone replacement therapy (TRT) comprising testosterone undecanoate. The company's pipeline candidates also include TLANDO XR a candidate for oral TRT for once daily dosing, which has completed Phase 2b clinical study; LPCN 1148, an oral prodrug of bioidentical testosterone, being developed for the treatment of cirrhosis, currently under Phase 2 clinical studies; LPCN 1154, An oral neurosteroid, being developed for the treatment of postpartum depression, currently under Phase 2 studies; LPCN 2101, a NAS candidate, for women with epilepsy; and LPCN 2203 for essential tremor. It is also involved in the development of LPCN 1144, an oral prodrug of bioidentical testosterone for the treatment of pre-cirrhotic non-alcoholic steatohepatitis, which has completed Phase 2 testing; and LPCN 1107, an oral product candidate of 17-alpha-hydroxy progesterone caproate product, currently under Phase 3 studies for the prevention of recurrent preterm birth. The company was founded in 1997 and is headquartered in Salt Lake City, Utah.

About Bristol Myers Squibb

Bristol-Myers Squibb Company discovers, develops, licenses, manufactures, markets, distributes, and sells biopharmaceutical products worldwide. It offers products for hematology, oncology, cardiovascular, immunology, fibrotic, and neuroscience diseases. The company's products include Eliquis for reduction in risk of stroke/systemic embolism in non-valvular atrial fibrillation, and for the treatment of DVT/PE; Opdivo for various anti-cancer indications, including bladder, blood, CRC, head and neck, RCC, HCC, lung, melanoma, MPM, stomach and esophageal cancer; Pomalyst/Imnovid for multiple myeloma; Orencia for active rheumatoid arthritis and psoriatic arthritis; and Sprycel for the treatment of Philadelphia chromosome-positive chronic myeloid leukemia. It also provides Yervoy for the treatment of patients with unresectable or metastatic melanoma; Empliciti for the treatment of multiple myeloma; Abecma for the treatment of relapsed or refractory multiple myeloma; Reblozyl for the treatment of anemia; Opdualag for the treatment of unresectable or metastatic melanoma; and Zeposia to treat relapsing forms of multiple sclerosis. In addition, the company offers Breyanzi for the treatment of relapsed or refractory large B-cell lymphoma; Onureg for the treatment of AML; Inrebic for the treatment of myelofibrosis; Camzyos for the treatment of symptomatic obstructive HCM to enhance functional capacity and symptom; Sotyktu for the treatment of moderate-to-severe plaque psoriasis; Augtyro for the treatment of locally advanced or metastatic ROS1-positive NSCLC; Revlimid, an oral immunomodulatory drug for the treatment of multiple myeloma; and Abraxane to treat breast cancer, NSCLC and pancreatic cancer. It sells products to wholesalers, distributors, pharmacies, retailers, hospitals, clinics, and government agencies. The company was formerly known as Bristol-Myers Company. Bristol-Myers Squibb Company was founded in 1887 and is headquartered in Princeton, New Jersey.