Head-To-Head Contrast: Cumberland Pharmaceuticals (NASDAQ:CPIX) & United-Guardian (NASDAQ:UG)

Cumberland Pharmaceuticals (NASDAQ:CPIX) and United-Guardian (NASDAQ:UG) 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, analyst recommendations, profitability, institutional ownership, valuation and earnings.

Insider & Institutional Ownership

15.5% of Cumberland Pharmaceuticals shares are owned by institutional investors. Comparatively, 23.2% of United-Guardian shares are owned by institutional investors. 42.1% of Cumberland Pharmaceuticals shares are owned by insiders. Comparatively, 29.0% of United-Guardian shares are owned by 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.

Analyst Ratings

This is a breakdown of current ratings and target prices for Cumberland Pharmaceuticals and United-Guardian, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cumberland Pharmaceuticals	1	0	0	0	1.00
United-Guardian	0	1	0	0	2.00

Volatility and Risk

Cumberland Pharmaceuticals has a beta of 0.06, suggesting that its stock price is 94% less volatile than the S&P 500. Comparatively, United-Guardian has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500.

Profitability

This table compares Cumberland Pharmaceuticals and United-Guardian’s 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%
United-Guardian	22.01%	22.24%	19.12%

Earnings and Valuation

This table compares Cumberland Pharmaceuticals and United-Guardian”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cumberland Pharmaceuticals	$44.52 million	1.42	-$2.84 million	($0.71)	-5.94
United-Guardian	$10.55 million	3.15	$2.11 million	$0.54	13.43

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

Summary

United-Guardian beats Cumberland Pharmaceuticals on 10 of the 12 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 United-Guardian

United-Guardian, Inc. manufactures and markets cosmetic ingredients, pharmaceuticals, medical lubricants, and proprietary specialty industrial products in the United States and internationally The company offers cosmetic ingredients, including LUBRAJEL, a line of water-based gel formulation for sensory enhancement, lubrication, and texture to personal care products; LUBRAJEL NATURAL for skin moisturizing; LUBRAJEL MARINE that develops natural products using naturally derived polymers; LUBRAJEL OlL NATURAL, which makes luxuriant textures without adding viscosity; LUBRAJEL TERRA, a multifunctional, moisturizing hydrogel products; LUBRASIL II SB, a formulation of LUBRAJEL; LUBRAJEL II XD; B-122, a powdered lubricant used in the manufacture of pressed powders, eyeliners, rouges, and industrial products; and ORCHID COMPLEX, an oil-soluble base for extract of fresh orchids used in fragrance products, such as perfumes and toiletries. Its medical lubricants comprise LUBRAJEL RR and RC, which are water-based lubricant gels for urinary catheters; LUBRAJEL MG to lubricate urinary catheters, pre-lubricated enema tips, and other medical devices; LUBRAJEL MGL, a medical lubricant with a lower viscosity medical lubricant; LUBRAJEL LC, LUBRAJEL BA, and LUBRAJEL FA, which are formulations for oral care; and LUBRAJEL FLUID to lubricate water-soluble products. The company's pharmaceutical products consist of RENACIDIN, a prescription drug to prevent and dissolve calcifications in urethral catheters and the urinary bladder; and CLORPACTIN WCS-90, an antimicrobial used in urology. Its industrial products include DESELEX, a sequestering and chelating agent used for manufacturing detergents; and THOROCLENS, a chlorine-based industrial cleanser. The company also conducts research and product development of cosmetic ingredients. The company was founded in 1942 and is based in Hauppauge, New York.