Analyzing Pharming Group (OTCMKTS:PHGUF) & LifeVantage (NASDAQ:LFVN)

LifeVantage (NASDAQ:LFVN – Get Rating) and Pharming Group (OTCMKTS:PHGUF – Get Rating) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, valuation, dividends and profitability.

Analyst Ratings

This is a summary of current ratings and price targets for LifeVantage and Pharming Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LifeVantage	0	0	0	0	N/A
Pharming Group	0	0	0	0	N/A

Valuation and Earnings

This table compares LifeVantage and Pharming Group’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LifeVantage	$206.36 million	0.21	$3.12 million	($0.05)	-68.00
Pharming Group	$198.87 million	3.17	$16.00 million	$0.04	24.13

Pharming Group has lower revenue, but higher earnings than LifeVantage. LifeVantage is trading at a lower price-to-earnings ratio than Pharming Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares LifeVantage and Pharming Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LifeVantage	-0.35%	5.21%	2.42%
Pharming Group	14.90%	15.52%	7.77%

Risk and Volatility

LifeVantage has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500. Comparatively, Pharming Group has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500.

Institutional and Insider Ownership

29.7% of LifeVantage shares are held by institutional investors. 6.8% of LifeVantage shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Pharming Group beats LifeVantage on 7 of the 11 factors compared between the two stocks.

About LifeVantage

(Get Rating)

LifeVantage Corp. engages in the identification, research, development and distribution of advanced nutraceutical dietary supplements and personal care products. The firm operates through the following geographical segments: Americas Region, and Asia/Pacific and Europe Region. Its products include Protandim, LifeVantage Omega+ and ProBio, TrueScience and Petandim for dogs. The company was founded in June 1988 and is headquartered in Sandy, UT.

About Pharming Group

(Get Rating)

Pharming Group NV is a holding company, which engages in the development of pharmaceutical products for the treatment of rare diseases and unmet medical needs. The firm offers RUCONEST, which is a recombinant human C1-esterase inhibitor for the treatment of acute hereditary angioedema. It operates through the following geographical segments: the United States, Europe, and Rest of the World. The company was founded on November 11, 1988 and is headquartered in Leiden, the Netherlands.