Anacor Pharmaceuticals (NASDAQ: ANAC) and Albany Molecular Research (NASDAQ:AMRI) are both healthcare companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, risk, profitability, institutional ownership, valuation, earnings and analyst recommendations.

Profitability

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This table compares Anacor Pharmaceuticals and Albany Molecular Research’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Anacor Pharmaceuticals -92.08% -133.71% -38.09%
Albany Molecular Research -5.93% -13.39% -3.42%

Earnings and Valuation

This table compares Anacor Pharmaceuticals and Albany Molecular Research’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Anacor Pharmaceuticals N/A N/A N/A ($1.45) -68.32
Albany Molecular Research N/A N/A N/A ($1.43) -15.20

Anacor Pharmaceuticals is trading at a lower price-to-earnings ratio than Albany Molecular Research, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

72.1% of Albany Molecular Research shares are held by institutional investors. 14.5% of Albany Molecular Research shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for Anacor Pharmaceuticals and Albany Molecular Research, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Anacor Pharmaceuticals 0 0 0 0 N/A
Albany Molecular Research 0 4 0 0 2.00

Albany Molecular Research has a consensus target price of $18.00, indicating a potential downside of 17.20%. Given Albany Molecular Research’s higher possible upside, analysts clearly believe Albany Molecular Research is more favorable than Anacor Pharmaceuticals.

Risk & Volatility

Anacor Pharmaceuticals has a beta of 1.53, meaning that its share price is 53% more volatile than the S&P 500. Comparatively, Albany Molecular Research has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500.

Summary

Albany Molecular Research beats Anacor Pharmaceuticals on 8 of the 9 factors compared between the two stocks.

About Anacor Pharmaceuticals

Anacor Pharmaceuticals, Inc. is a biopharmaceutical company. The Company is focused on discovering, developing and commercializing small-molecule therapeutics derived from its boron chemistry platform. Its lead product development candidate is crisaborole topical ointment, approximately 2%, a non-steroidal topical anti-inflammatory phosphodiesterase-4 (PDE-4) inhibitor in development for the treatment of mild-to-moderate atopic dermatitis and psoriasis. Its product, KERYDIN (tavaborole) topical solution, approximately 5%, is an oxaborole antifungal approved by the United States Food and Drug Administration (FDA) for the topical treatment of onychomycosis of the toenails. It also has a pipeline of other internally discovered topical and systemic boron-based compounds in early-stages of research and development, which include AN3365. Its compound, AN5568 (SCYX-7158), is licensed to Drugs for Neglected Diseases initiative (DNDi) for the treatment of human African trypanosomiasis.

About Albany Molecular Research

Albany Molecular Research, Inc. is a contract research and manufacturing company. The Company operates through Discovery and Development Services (DDS), Active Pharmaceutical Ingredients (API), Drug Product (DP) and Fine Chemicals (FC) segments. The DDS segment includes activities, such as drug lead discovery, optimization, drug development and small scale commercial manufacturing. The API segment includes pilot to commercial scale manufacturing of active pharmaceutical ingredients and intermediates. The DP segment includes pre-formulation, formulation and process development through commercial scale production of complex liquid-filled and lyophilized sterile injectable products and ophthalmic formulations. The FC segment includes lab to commercial scale synthesis of reagents and diverse compounds. It supplies a range of services and technologies supporting the discovery and development of pharmaceutical products, the manufacturing of API and drug product for new and generic drugs.

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