Critical Comparison: ANI Pharmaceuticals (NASDAQ:ANIP) vs. Cumberland Pharmaceuticals (NASDAQ:CPIX)

Cumberland Pharmaceuticals (NASDAQ:CPIX) and ANI Pharmaceuticals (NASDAQ:ANIP) are both small-cap healthcare companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, risk, profitability, institutional ownership, earnings and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cumberland Pharmaceuticals	-34.40%	-28.81%	-9.25%
ANI Pharmaceuticals	11.07%	27.37%	10.47%

Analyst Recommendations

This is a summary of recent recommendations for Cumberland Pharmaceuticals and ANI Pharmaceuticals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cumberland Pharmaceuticals	1	0	0	0	1.00
ANI Pharmaceuticals	0	4	4	0	2.50

ANI Pharmaceuticals has a consensus price target of $105.83, indicating a potential upside of 48.58%. Given ANI Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts clearly believe ANI Pharmaceuticals is more favorable than Cumberland Pharmaceuticals.

Insider and Institutional Ownership

15.5% of Cumberland Pharmaceuticals shares are owned by institutional investors. Comparatively, 76.0% of ANI Pharmaceuticals shares are owned by institutional investors. 42.1% of Cumberland Pharmaceuticals shares are owned by company insiders. Comparatively, 8.1% of ANI Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Cumberland Pharmaceuticals and ANI Pharmaceuticals”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cumberland Pharmaceuticals	$44.52 million	2.28	-$2.84 million	($0.71)	-9.56
ANI Pharmaceuticals	$883.37 million	1.85	$78.34 million	$4.64	15.35

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

Risk & Volatility

Cumberland Pharmaceuticals has a beta of 0.13, meaning that its stock price is 87% less volatile than the S&P 500. Comparatively, ANI Pharmaceuticals has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500.

Summary

ANI Pharmaceuticals beats Cumberland Pharmaceuticals on 12 of the 14 factors compared between the two stocks.

About Cumberland Pharmaceuticals

Cumberland Pharmaceuticals Inc., a specialty pharmaceutical company, focuses on the acquisition, development, and commercialization of prescription products for hospital acute care, gastroenterology, and oncology in the United States and internationally. The company offers Acetadote, an injection for the treatment of acetaminophen poisoning; Caldolor, an injection for the treatment of pain and fever; Kristalose, a prescription laxative oral solution for the treatment of constipation; Omeclamox-Pak for the treatment of Helicobacter pylori infection and duodenal ulcer disease; Vaprisol, an injection for treating euvolemic and hypervolemic hyponatremia; Sancuso, an injection for the treatment of chemotherapy treatment; and Vibativ, an injection for the treatment of certain serious bacterial infections, including hospital-acquired and ventilator-associated bacterial pneumonia, as well as complicated skin and skin structure infections. It develops RediTrex injection for the treatment of active rheumatoid, juvenile idiopathic, and severe psoriatic arthritis, as well as disabling psoriasis. In addition, the company is developing ifetroban, a product candidate that is in phase II clinical trial for the treatment of aspirin-exacerbated respiratory disease, systemic sclerosis, and duchenne muscular dystrophy; and has completed phase II clinical trial for the treatment of hepatorenal syndrome and portal hypertension. Further, it develops a clinical program for the use of ifetroban to treat progressive fibrosing interstitial lung diseases. The company was incorporated in 1999 and is headquartered in Nashville, Tennessee.

About ANI Pharmaceuticals

ANI Pharmaceuticals, Inc., a biopharmaceutical company, develops, manufactures, and markets branded and generic prescription pharmaceuticals in the United States and Canada. The company manufactures oral solid dose products; semi-solids, liquids, and topicals; controlled substances; and potent products, as well as performs contract development and manufacturing of pharmaceutical products. It markets its products through retail pharmacy chains, wholesalers, distributors and mail order pharmacies, group purchasing organizations, specialty pharmacies, and hospitals. ANI Pharmaceuticals, Inc. was incorporated in 2001 and is headquartered in Baudette, Minnesota.