Critical Comparison: Recordati Industria Chimica E Farmaceutica (OTCMKTS:RCDTF) vs. ANI Pharmaceuticals (NASDAQ:ANIP)

Recordati Industria Chimica E Farmaceutica (OTCMKTS:RCDTF) and ANI Pharmaceuticals (NASDAQ:ANIP) are both healthcare companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.

Profitability

This table compares Recordati Industria Chimica E Farmaceutica and ANI Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Recordati Industria Chimica E Farmaceutica	18.38%	33.73%	12.76%
ANI Pharmaceuticals	11.07%	27.37%	10.47%

Institutional & Insider Ownership

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

Risk and Volatility

Recordati Industria Chimica E Farmaceutica has a beta of 0.26, indicating that its share price is 74% less volatile than the S&P 500. Comparatively, ANI Pharmaceuticals has a beta of 0.5, indicating that its share price is 50% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Recordati Industria Chimica E Farmaceutica and ANI Pharmaceuticals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Recordati Industria Chimica E Farmaceutica	0	1	0	1	3.00
ANI Pharmaceuticals	0	4	3	0	2.43

ANI Pharmaceuticals has a consensus target price of $99.60, suggesting a potential upside of 37.06%. Given ANI Pharmaceuticals’ higher possible upside, analysts plainly believe ANI Pharmaceuticals is more favorable than Recordati Industria Chimica E Farmaceutica.

Earnings & Valuation

This table compares Recordati Industria Chimica E Farmaceutica and ANI Pharmaceuticals”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Recordati Industria Chimica E Farmaceutica	$2.96 billion	4.10	$501.92 million	$2.80	21.00
ANI Pharmaceuticals	$883.37 million	1.89	$78.34 million	$4.64	15.66

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

Summary

Recordati Industria Chimica E Farmaceutica beats ANI Pharmaceuticals on 9 of the 15 factors compared between the two stocks.

About Recordati Industria Chimica E Farmaceutica

Recordati Industria Chimica e Farmaceutica S.p.A., together with its subsidiaries, engages in the research, development, manufacture, and marketing of pharmaceuticals worldwide. The company operates through Specialty and Primary Care and Rare Diseases segments. Its product pipeline includes REC 0559 which is in Phase II for the treatment of Neurotrophic Keratitis; REC 0545 for acute decompensation in maple syrup urine diseases; ISTURISA for endogenous Cushing's syndrome; and CYSTADROPS, an corneal cystine deposits in patients with cystinosis. The company also develops CARBAGLU for hyperammonemia due to NAGS deficiency; QARZIBA, an apeiron for the treatment of high-risk neuroblastoma patients with a partial response at the chemotherapeutical through myeloablative therapy and stem cell transplantation, and relapsed or refractory neuroblastoma. In addition, it offers SYLVANT for the treatment of idiopathic multicentric Castleman diseases; REAGILA for Schizophrenia; and ELIGARD for hormone-dependent prostate cancer, as well as CAPHOSOL, a medical device for treatment of oral mucositis due to chemo and radiation therapy. The company was founded in 1926 and is headquartered in Milan, Italy. Recordati Industria Chimica e Farmaceutica S.p.A. operates as a subsidiary of Rossini S.à R.L.

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.