Critical Contrast: Insys Therapeutics (INSY) versus Imprimis Pharmaceuticals (IMMY)

Insys Therapeutics (NASDAQ: INSY) and Imprimis Pharmaceuticals (NASDAQ:IMMY) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, dividends, earnings, profitability and institutional ownership.

Analyst Ratings

This is a summary of current ratings and target prices for Insys Therapeutics and Imprimis Pharmaceuticals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Insys Therapeutics 0 2 2 0 2.50
Imprimis Pharmaceuticals 0 0 1 0 3.00

Insys Therapeutics currently has a consensus price target of $9.67, indicating a potential upside of 22.67%. Imprimis Pharmaceuticals has a consensus price target of $5.00, indicating a potential upside of 180.90%. Given Imprimis Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts plainly believe Imprimis Pharmaceuticals is more favorable than Insys Therapeutics.

Risk and Volatility

Insys Therapeutics has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, Imprimis Pharmaceuticals has a beta of -0.27, meaning that its share price is 127% less volatile than the S&P 500.

Profitability

This table compares Insys Therapeutics and Imprimis Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Insys Therapeutics -112.56% -11.76% -7.90%
Imprimis Pharmaceuticals -60.71% -264.98% -57.30%

Insider & Institutional Ownership

24.8% of Insys Therapeutics shares are held by institutional investors. Comparatively, 13.2% of Imprimis Pharmaceuticals shares are held by institutional investors. 67.9% of Insys Therapeutics shares are held by insiders. Comparatively, 12.6% of Imprimis Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Insys Therapeutics and Imprimis Pharmaceuticals’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Insys Therapeutics $242.27 million 2.38 $7.59 million ($2.55) -3.09
Imprimis Pharmaceuticals $19.94 million 1.83 -$19.08 million ($0.92) -1.93

Insys Therapeutics has higher revenue and earnings than Imprimis Pharmaceuticals. Insys Therapeutics is trading at a lower price-to-earnings ratio than Imprimis Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Summary

Insys Therapeutics beats Imprimis Pharmaceuticals on 9 of the 13 factors compared between the two stocks.

About Insys Therapeutics

Insys Therapeutics, Inc. is a commercial-stage specialty pharmaceutical company. The Company develops and commercializes supportive care products. The Company’s product Subsys, is a sublingual fentanyl spray for breakthrough cancer pain (BTCP) in opioid-tolerant patients and a single-use product that delivers fentanyl, an opioid analgesic, for transmucosal absorption underneath the tongue. The Company markets Subsys through its field sales force focused on supportive care physicians in the United States. Subsys delivers a liquid fentanyl formulation in approximately 100, 200, 400, 600, 800, 1,200 and 1,600 micrograms (mcg) dosages. The Company’s lead dronabinol product candidate is Syndros, which is under review for approval at the Food and Drug Administration. In addition, the Company is evaluating sublingual spray, inhaled and intravenous formulations of dronabinol in preclinical studies.

About Imprimis Pharmaceuticals

Imprimis Pharmaceuticals, Inc. (Imprimis) is engaged in the development, production and dispensing of compounded pharmaceuticals. The Company operates through the business of developing drug therapies and providing such therapies through sterile and non-sterile pharmaceutical compounding services segment. The Company, through its Imprimis Cares program, owns, markets and dispenses a portfolio of compounded therapeutic in several therapeutic areas, including ophthalmology, urology, otolaryngology and infectious diseases. The Company is also developing Custom Compounding Choice business, which is focused on developing and dispensing a portfolio of non-proprietary compounded drugs for humans and animals in therapeutic areas that may be overlooked by commercial pharmaceutical companies. The Company also offers customizable compounding products that consist of sterile injectable and non-sterile integrative medicine therapies that are used in various therapeutic areas.

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