Analyzing Perrigo (NYSE:PRGO) and DiaSorin (OTCMKTS:DSRLF)

DiaSorin (OTCMKTS:DSRLF) and Perrigo (NYSE:PRGO) are both medical companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, earnings, dividends, institutional ownership, valuation, profitability and analyst recommendations.

Profitability

This table compares DiaSorin and Perrigo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DiaSorin	N/A	N/A	N/A
Perrigo	-33.51%	9.41%	3.97%

Volatility & Risk

DiaSorin has a beta of 0.27, meaning that its stock price is 73% less volatile than the S&P 500. Comparatively, Perrigo has a beta of 0.47, meaning that its stock price is 53% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for DiaSorin and Perrigo, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DiaSorin	0	2	2	0	2.50
Perrigo	2	3	1	0	1.83

Perrigo has a consensus price target of $19.33, indicating a potential upside of 78.42%. Given Perrigo’s higher probable upside, analysts plainly believe Perrigo is more favorable than DiaSorin.

Institutional & Insider Ownership

95.9% of Perrigo shares are owned by institutional investors. 0.7% of Perrigo shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares DiaSorin and Perrigo”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DiaSorin	$1.28 billion	2.86	$203.55 million	N/A	N/A
Perrigo	$4.25 billion	0.35	-$1.43 billion	($10.28)	-1.05

DiaSorin has higher earnings, but lower revenue than Perrigo.

Summary

Perrigo beats DiaSorin on 7 of the 12 factors compared between the two stocks.

About DiaSorin

DiaSorin S.p.A. engages in development, manufacture, and distribution of immunodiagnostics and molecular diagnostics testing kits in Europe, Africa, North America, Central and South America, the Asia Pacific, and China. The company provides various immunodiagnostic LIAISON platforms, including LIAISON XS, LIASON IQ, LIAISON XL, LIAISON XXL, and LIAISON XL LAS. It also offers molecular diagnostics platforms comprising of LIAISON NES, a new molecular platform to address the growing diagnostic decentralization trend; the ARIES and ARIES M1 systems; LIAISON MDX, a thermocycler with two consumable disc options; LIAISON MDX Plus; MAGPIX System; Luminex 100/200 System; VERIGENE System; and the LIAISON PLEX System. It has partnership agreements with QIAGEN for diagnostic solution for Latent Tuberculosis detection; TTP for the development of molecular Point-of-Care solution; and MeMed for the launch of a test differentiating between viral and bacterial infections. The company was founded in 1968 and is headquartered in Saluggia, Italy.

About Perrigo

Perrigo Company plc provides over-the-counter health and wellness solutions to enhance individual well-being in the United States, Europe, and internationally. It operates through Consumer Self-Care Americas and Consumer Self-Care International segments. The company develops, manufactures, markets, and distributes self-care consumer products, such as upper respiratory products, including cough suppressants, expectorants, and sinus and allergy relief; nutrition products consisting of infant formulas and nutritional beverages; digestive health products, including antacids, anti-diarrheal, and anti-heartburn; pain and sleep-aids products comprising pain relievers and fever reducers; and oral care products, which include toothbrushes, toothbrush replacement heads, floss, flossers, whitening products, and toothbrush covers. It also offers healthy lifestyle products, such as smoking cessation, well-being, and weight management products; skin care products consisting of dermatological care, scar management, lice treatment, and other products for various skin conditions; women's health products comprising feminine hygiene and contraceptives; vitamins, minerals, and supplements; rare diseases business; and other miscellaneous self-care products. The company sells its products under the Compeed, Dr. Fresh, Firefly, Good Sense, Good Start, Mederma, Nasonex, Plackers, Prevacid24HR, REACH, Rembrandt, Steripod, Opill, Solpadeine, Coldrex, Physiomer, NiQuitin, ACO, ellaOne, Compeed Stops, XLS, Arterin, Davitamon, Apiserum, Abtei, and Nicorette brands. It also offers contract manufacturing services. The company sells its products through retail drug, supermarket, and mass merchandise chains; e-commerce stores; wholesalers; pharmacies; drug and grocery retailers; and para-pharmacies. The company was formerly known as Perrigo Company and changed its name to Perrigo Company plc in December 2013. Perrigo Company plc was founded in 1887 and is headquartered in Dublin, Ireland.