Amneal Pharmaceuticals (NASDAQ:AMRX) and Neurocrine Biosciences (NASDAQ:NBIX) Head-To-Head Comparison

Neurocrine Biosciences (NASDAQ:NBIX) and Amneal Pharmaceuticals (NASDAQ:AMRX) are both healthcare companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, risk, analyst recommendations and valuation.

Earnings & Valuation

This table compares Neurocrine Biosciences and Amneal Pharmaceuticals”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Neurocrine Biosciences	$2.86 billion	5.92	$478.60 million	$6.74	24.84
Amneal Pharmaceuticals	$3.20 billion	2.14	$72.06 million	$0.42	50.90

Neurocrine Biosciences has higher earnings, but lower revenue than Amneal Pharmaceuticals. Neurocrine Biosciences is trading at a lower price-to-earnings ratio than Amneal Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Neurocrine Biosciences has a beta of 0.36, suggesting that its share price is 64% less volatile than the S&P 500. Comparatively, Amneal Pharmaceuticals has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500.

Profitability

This table compares Neurocrine Biosciences and Amneal Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Neurocrine Biosciences	18.98%	23.39%	16.22%
Amneal Pharmaceuticals	4.17%	283.50%	7.79%

Analyst Recommendations

This is a summary of current ratings and target prices for Neurocrine Biosciences and Amneal Pharmaceuticals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Neurocrine Biosciences	0	4	19	1	2.88
Amneal Pharmaceuticals	0	2	8	0	2.80

Neurocrine Biosciences currently has a consensus target price of $202.59, suggesting a potential upside of 21.02%. Amneal Pharmaceuticals has a consensus target price of $23.00, suggesting a potential upside of 7.58%. Given Neurocrine Biosciences’ stronger consensus rating and higher probable upside, equities analysts clearly believe Neurocrine Biosciences is more favorable than Amneal Pharmaceuticals.

Institutional & Insider Ownership

92.6% of Neurocrine Biosciences shares are owned by institutional investors. Comparatively, 31.8% of Amneal Pharmaceuticals shares are owned by institutional investors. 4.6% of Neurocrine Biosciences 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 endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Neurocrine Biosciences beats Amneal Pharmaceuticals on 10 of the 15 factors compared between the two stocks.

About Neurocrine Biosciences

Neurocrine Biosciences is a biopharmaceutical company focused on developing and commercializing treatments for neurological, endocrine and related disorders. Founded in 1992 and headquartered in San Diego, California, the company conducts research and development alongside its commercial operations. Its marketed medicines include INGREZZA (valbenazine), approved in the United States for tardive dyskinesia and chorea associated with Huntington disease, and CRENESSITY (crinecerfont), used with glucocorticoid replacement therapy to treat classic congenital adrenal hyperplasia in adults and children.

About Amneal Pharmaceuticals

Amneal Pharmaceuticals is a U.S.-based pharmaceutical company that develops, manufactures and markets generic and specialty medicines. Its products include a broad range of generic drugs, including complex formulations and injectable medicines, as well as branded therapies in areas such as neurology and endocrinology. The company also operates AvKARE, which distributes pharmaceuticals and medical products to government, institutional and commercial customers. Amneal serves customers in the United States and in international markets.