Lifecore Biomedical (NASDAQ:LFCR – Get Free Report) and Cumberland Pharmaceuticals (NASDAQ:CPIX – Get Free Report) are both small-cap healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, earnings, profitability, institutional ownership, valuation and analyst recommendations.
Risk and Volatility
Lifecore Biomedical has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500. Comparatively, Cumberland Pharmaceuticals has a beta of 0.06, suggesting that its stock price is 94% less volatile than the S&P 500.
Earnings & Valuation
This table compares Lifecore Biomedical and Cumberland Pharmaceuticals”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Lifecore Biomedical | $128.87 million | 1.87 | -$40.50 million | ($1.07) | -5.96 |
| Cumberland Pharmaceuticals | $44.30 million | 2.43 | -$2.84 million | ($0.71) | -10.11 |
Cumberland Pharmaceuticals has lower revenue, but higher earnings than Lifecore Biomedical. Cumberland Pharmaceuticals is trading at a lower price-to-earnings ratio than Lifecore Biomedical, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current recommendations and price targets for Lifecore Biomedical and Cumberland Pharmaceuticals, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Lifecore Biomedical | 1 | 4 | 0 | 0 | 1.80 |
| Cumberland Pharmaceuticals | 1 | 0 | 0 | 0 | 1.00 |
Lifecore Biomedical currently has a consensus price target of $6.50, indicating a potential upside of 1.88%. Given Lifecore Biomedical’s stronger consensus rating and higher probable upside, equities analysts plainly believe Lifecore Biomedical is more favorable than Cumberland Pharmaceuticals.
Profitability
This table compares Lifecore Biomedical and Cumberland Pharmaceuticals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Lifecore Biomedical | -29.93% | N/A | -16.16% |
| Cumberland Pharmaceuticals | -34.40% | -28.81% | -9.25% |
Institutional and Insider Ownership
83.4% of Lifecore Biomedical shares are held by institutional investors. Comparatively, 15.5% of Cumberland Pharmaceuticals shares are held by institutional investors. 32.7% of Lifecore Biomedical shares are held by insiders. Comparatively, 42.1% of Cumberland Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Summary
Lifecore Biomedical beats Cumberland Pharmaceuticals on 8 of the 13 factors compared between the two stocks.
About Lifecore Biomedical
Lifecore Biomedical, Inc., together with its subsidiaries, operates as an integrated contract development and manufacturing organization in the United States and internationally. The company engages in the manufacturing of pharmaceutical-grade sodium hyaluronate (HA) in bulk form, as well as formulated and filled syringes and vials for injectable products used in treating a range of medical conditions and procedures. It also provides services, such as technology development, material component changes, analytical method development, formulation development, pilot studies, stability studies, process validation, and production of materials for clinical studies to its partners for HA-based and non-HA based aseptically formulated and filled products. The company was formerly known as Landec Corporation and changed its name to Lifecore Biomedical, Inc. in November 2022. Lifecore Biomedical, Inc. was founded in 1965 and is headquartered in Chaska, Minnesota.
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.
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