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

Profitability

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

Net Margins Return on Equity Return on Assets
Akorn -55.64% 8.53% 1.31%
LifeVantage 5.06% 43.08% 22.57%

Risk & Volatility

Akorn has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500. Comparatively, LifeVantage has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Akorn and LifeVantage, as provided by MarketBeat.com.

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

Earnings and Valuation

This table compares Akorn and LifeVantage’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Akorn $682.43 million 0.06 -$226.77 million ($0.34) -0.87
LifeVantage $225.96 million 0.84 $7.43 million $0.59 22.54

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

Insider and Institutional Ownership

63.9% of Akorn shares are owned by institutional investors. Comparatively, 47.7% of LifeVantage shares are owned by institutional investors. 3.9% of Akorn shares are owned by company insiders. Comparatively, 6.8% of LifeVantage shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

LifeVantage beats Akorn on 9 of the 11 factors compared between the two stocks.

About Akorn

Akorn, Inc., a specialty pharmaceutical company, develops, manufactures, and markets generic and branded prescription pharmaceuticals, over-the-counter (OTC) consumer health products, and animal health pharmaceuticals in the United States and internationally. The company operates in two segments, Prescription Pharmaceuticals and Consumer Health. The Prescription Pharmaceuticals segment offers generic and branded prescription pharmaceuticals in various dosage forms, including sterile ophthalmics, injectables, and inhalants; and non-sterile oral liquids, topicals, nasal sprays, and otics. Its primary products include Akten, a topical ocular anesthetic gel; AzaSite, an antibiotic used to treat bacterial conjunctivitis; Cosopt, Cosopt PF, Betimol, and Zioptan, which are used in the treatment of glaucoma; and Xopenex inhalation solution used in the treatment or prevention of bronchospasm. The Consumer Health segment manufactures and markets OTC products for the treatment of dry eye under the TheraTears brand. It also markets other OTC consumer health products comprising Mag-Ox, a magnesium supplement; and the Diabetic Tussin line of cough and cold products. In addition, this segment offers a portfolio of animal health products, such as Anased and VetaKet veterinary sedatives; Tolazine and Yobine sedative reversing agents; and Butorphic, a pain reliever. Further, the company sells its products to wholesale distributors. Akorn, Inc. was founded in 1971 and is headquartered in Lake Forest, Illinois. On May 20, 2020, Akorn, Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware.

About LifeVantage

LifeVantage Corporation engages in the identification, research, development, and distribution of nutraceutical dietary supplements and skin care products. The company offers Protandim, a scientifically-validated dietary supplement; LifeVantage TrueScience, an anti-aging skin care product; Axio, a line of energy drink mixes; Omega+, a fish oil dietary supplement that combines DHA and EPA Omega-3 fatty acids, Omega-7 fatty acids, and Vitamin D3; and PhysIQ, a weight management system, as well as Petandim for Dogs, a companion pet supplement formulated to treat oxidative stress in dogs. It also provides skin care products, including facial cleansers, perfecting lotions, eye serums, anti-aging creams, hand creams, and micro-lift serums; and Hair Care System under the TrueScience brand name. The company sells its products through a direct sales model, as well as a network of independent distributors in the United States, Japan, Hong Kong, Australia, Canada, Mexico, Thailand, the United Kingdom, the Netherlands, Germany, Spain, and Taiwan. LifeVantage Corporation is headquartered in Sandy, Utah.

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