Teligent (NASDAQ: TLGT) and Amphastar Pharmaceuticals (NASDAQ:AMPH) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.

Risk and Volatility

Teligent has a beta of 1.34, meaning that its share price is 34% more volatile than the S&P 500. Comparatively, Amphastar Pharmaceuticals has a beta of 1.69, meaning that its share price is 69% more volatile than the S&P 500.

Valuation and Earnings

This table compares Teligent and Amphastar Pharmaceuticals’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Teligent $66.88 million 2.95 -$11.98 million ($0.23) -16.09
Amphastar Pharmaceuticals $255.16 million 3.48 $10.53 million N/A N/A

Amphastar Pharmaceuticals has higher revenue and earnings than Teligent.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Teligent and Amphastar Pharmaceuticals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Teligent 0 2 1 0 2.33
Amphastar Pharmaceuticals 0 2 4 0 2.67

Teligent currently has a consensus price target of $7.00, suggesting a potential upside of 89.19%. Amphastar Pharmaceuticals has a consensus price target of $20.83, suggesting a potential upside of 7.89%. Given Teligent’s higher probable upside, equities research analysts clearly believe Teligent is more favorable than Amphastar Pharmaceuticals.

Institutional & Insider Ownership

70.8% of Teligent shares are held by institutional investors. Comparatively, 44.1% of Amphastar Pharmaceuticals shares are held by institutional investors. 22.6% of Teligent shares are held by insiders. Comparatively, 11.1% of Amphastar Pharmaceuticals 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.

Profitability

This table compares Teligent and Amphastar Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Teligent -16.95% -6.51% -1.92%
Amphastar Pharmaceuticals 0.12% 2.30% 1.74%

Summary

Amphastar Pharmaceuticals beats Teligent on 9 of the 12 factors compared between the two stocks.

Teligent Company Profile

Teligent, Inc. is a specialty generic pharmaceutical company. Under the Company’s own label, it markets and sells generic injectable pharmaceutical products in the United States and Canada. In the United States it marketed 16 generic topical pharmaceutical products and four branded generic pharmaceutical products, as of December 31, 2016. It provides development, formulation and manufacturing services to the pharmaceutical, over-the-counter (OTC) and cosmetic industries. It focuses on developing, manufacturing and marketing a portfolio of generic pharmaceutical products under its own label in topical, injectable, complex and ophthalmic dosage forms, and managing its contract manufacturing and formulation services business. Its pipeline included 34 Abbreviated New Drug Application(ANDAs) filed with the United States Food and Drug Administration (FDA) for additional pharmaceutical products, as of December 31, 2016.

Amphastar Pharmaceuticals Company Profile

Amphastar Pharmaceuticals, Inc. is a specialty pharmaceutical company. The Company focuses primarily on developing, manufacturing, marketing and selling generic and injectable, inhalation and intranasal products. The Company has two segments: finished pharmaceutical products and active pharmaceutical ingredients (API) products. The finished pharmaceutical products segment manufactures, markets and distributes enoxaparin, Cortrosyn, Amphadase, naloxone, lidocaine jelly, as well as various other critical and non-critical care drugs. The API segment manufactures and distributes recombinant human insulin and porcine insulin. The Company also manufactures and sells insulin API. As of December 31, 2016, the Company manufactured and sold 19 products. As of December 31, 2016, the Company developed a portfolio of 15 generic abbreviated new drug applications (ANDAs) three generic biosimilar product candidates and six injectable and inhalation product candidates.

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