Hospira (NYSE: HSP) and Cumberland Pharmaceuticals (NASDAQ:CPIX) are both generic pharmaceuticals companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, dividends, analyst recommendations, profitability, risk, institutional ownership and valuation.

Insider and Institutional Ownership

34.4% of Cumberland Pharmaceuticals shares are held by institutional investors. 38.0% of Cumberland Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Hospira and Cumberland Pharmaceuticals’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hospira N/A N/A N/A $2.39 37.64
Cumberland Pharmaceuticals $33.03 million 3.34 -$940,000.00 ($0.50) -14.00

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

Profitability

This table compares Hospira and Cumberland Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hospira 12.15% 16.51% 8.65%
Cumberland Pharmaceuticals -20.55% -0.52% -0.39%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Hospira and Cumberland Pharmaceuticals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hospira 0 0 0 0 N/A
Cumberland Pharmaceuticals 0 0 0 0 N/A

Summary

Hospira beats Cumberland Pharmaceuticals on 5 of the 8 factors compared between the two stocks.

Hospira Company Profile

Hospira, Inc. provides injectable pharmaceutical drugs and infusion technologies and it develops, manufactures, distributes and markets biosimilars. The Company’s portfolio includes generic acute-care and oncology injectables, biosimilars, and integrated infusion therapy and medication management products. The Company conducts operations across the world and is managed in three segments: the Americas, which include the United States, Canada, and Latin America; Europe, Middle East, and Africa (EMEA), and the Asia Pacific, which includes Asia, Japan, Australia and New Zealand. Its portfolio of products includes Specialty Injectable Pharmaceuticals, which includes generic injectables, injectables and biosimilars, Medication Management and Other Pharmaceuticals. Its portfolio of products is used by hospitals and alternate site providers, such as clinics, home healthcare providers and long-term care facilities.

Cumberland Pharmaceuticals Company Profile

Cumberland Pharmaceuticals Inc. (Cumberland) is a specialty pharmaceutical company. The Company is focused on the acquisition, development and commercialization of branded prescription products. The Company operates through specialty pharmaceutical products segment. The Company’s product portfolio includes Acetadote (acetylcysteine) Injection for the treatment of acetaminophen poisoning; Caldolor (ibuprofen) Injection for the treatment of pain and fever; Kristalose (lactulose) for Oral Solution for the treatment of chronic and acute constipation; Omeclamox-Pak, (omeprazole, clarithromycin, amoxicillin) for the treatment of Helicobacter pylori (H. pylori) infection and related duodenal ulcer disease; Vaprisol (conivaptan) Injection to raise serum sodium levels in hospitalized patients with euvolemic and hypervolemic hyponatremia; Hepatoren (ifetroban) Injection, and Boxaban (ifetroban) oral capsules for the treatment of patients with aspirin-exacerbated respiratory disease (AERD).

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