Mallinckrodt PLC (NYSE: MNK) and DARA Biosciences (NASDAQ:DARA) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, profitability, risk, analyst recommendations, institutional ownership, dividends and earnings.

Earnings & Valuation

This table compares Mallinckrodt PLC and DARA Biosciences’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Mallinckrodt PLC $3.27 billion 1.01 $666.60 million $4.10 8.12
DARA Biosciences N/A N/A N/A N/A N/A

Mallinckrodt PLC has higher revenue and earnings than DARA Biosciences.

Profitability

This table compares Mallinckrodt PLC and DARA Biosciences’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mallinckrodt PLC 12.64% 15.28% 5.20%
DARA Biosciences -228.42% -145.61% -100.38%

Institutional and Insider Ownership

97.4% of Mallinckrodt PLC shares are owned by institutional investors. 0.5% of Mallinckrodt PLC shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Mallinckrodt PLC and DARA Biosciences, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mallinckrodt PLC 0 4 13 0 2.76
DARA Biosciences 0 0 0 0 N/A

Mallinckrodt PLC presently has a consensus target price of $59.97, indicating a potential upside of 80.15%. Given Mallinckrodt PLC’s higher probable upside, research analysts plainly believe Mallinckrodt PLC is more favorable than DARA Biosciences.

Summary

Mallinckrodt PLC beats DARA Biosciences on 8 of the 8 factors compared between the two stocks.

About Mallinckrodt PLC

Mallinckrodt public limited company develops, manufactures, markets and distributes branded and generic specialty pharmaceutical products and therapies. The Company focuses on various therapeutic areas, such as autoimmune and rare disease specialty areas, including neurology, rheumatology, nephrology, ophthalmology and pulmonology; immunotherapy and neonatal critical care respiratory therapies; analgesics and hemostasis products, and central nervous system drugs. Its segments include Specialty Brands and Specialty Generics. The Specialty Brands segment produces and markets branded pharmaceutical products and therapies. The Specialty Generics segment produces and markets specialty generic pharmaceuticals and active pharmaceutical ingredient (API) consisting of biologics, medicinal opioids, synthetic controlled substances, acetaminophen and other active ingredients. Its product portfolio includes Acthar, Inomax, Ofirmev, Therakos immunotherapy, Hemostasis products and StrataGraft.

About DARA Biosciences

DARA BioSciences Inc is specialty pharmaceutical company based in the United States. The Company’s primary focus is on the commercialization of oncology treatment and oncology supportive care pharmaceutical products, including Soltamox, an oral solution of tamoxifen citrate; cancer support therapeutics, including Gelclair, indicated for the treatment of oral mucositis and Bionect, for the management of irritation of the skin as well as first and second degree burns, and Three Mission Pharmacal products, including Ferralet 90 (for anemia), Binosto (alendronate sodium effervescent tablet indicated for the treatment of osteoporosis) and Aquoral (for cancer related dry mouth). The Company has a clinical development asset, KRN5500, which is a Phase II product candidate targeted for treating cancer patients with painful treatment-refractory chronic chemotherapy induced peripheral neuropathy. The Company is a subsidiary of Midatech Pharma Plc.

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