Critical Analysis: Hikma Pharmaceuticals (OTCMKTS:HKMPF) and ProPhase Labs (NASDAQ:PRPH)

Hikma Pharmaceuticals (OTCMKTS:HKMPF) and ProPhase Labs (NASDAQ:PRPH) are both medical companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, dividends, profitability, analyst recommendations, valuation, risk and institutional ownership.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Hikma Pharmaceuticals and ProPhase Labs, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hikma Pharmaceuticals	0	0	1	0	3.00
ProPhase Labs	1	0	0	0	1.00

Volatility and Risk

Hikma Pharmaceuticals has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500. Comparatively, ProPhase Labs has a beta of -0.66, suggesting that its stock price is 166% less volatile than the S&P 500.

Earnings and Valuation

This table compares Hikma Pharmaceuticals and ProPhase Labs”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hikma Pharmaceuticals	$3.13 billion	1.49	$359.00 million	N/A	N/A
ProPhase Labs	$6.77 million	0.31	-$53.36 million	($0.39)	-1.16

Hikma Pharmaceuticals has higher revenue and earnings than ProPhase Labs.

Profitability

This table compares Hikma Pharmaceuticals and ProPhase Labs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hikma Pharmaceuticals	N/A	N/A	N/A
ProPhase Labs	-825.01%	-482.05%	-88.90%

Institutional & Insider Ownership

9.5% of ProPhase Labs shares are held by institutional investors. 9.6% of ProPhase Labs shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Hikma Pharmaceuticals beats ProPhase Labs on 9 of the 11 factors compared between the two stocks.

About Hikma Pharmaceuticals

Hikma Pharmaceuticals PLC develops, manufactures, markets, and sells a range of generic, branded, and in-licensed pharmaceutical products. It operates through three segments: Injectables, Generics, and Branded. The Injectables segment provides generic injectable products primarily for use in hospitals. The Generics segment offers oral and other non-injectable generic products for the retail market. The Branded segment offers branded generics and in-licensed products to retail and hospital markets. The company provides its products in various therapeutic areas, including respiratory, oncology, and pain management. It also offers its products in solid, semi-solid, liquid, and injectable final dosage forms. The company operates in the United Kingdom, rest of Europe, North America, the Middle East, North Africa, and internationally. Hikma Pharmaceuticals PLC was founded in 1978 and is headquartered in London, the United Kingdom.

About ProPhase Labs

ProPhase Labs, Inc. develops and commercializes novel drugs, dietary supplements, and compounds in the United States. It operates through two segments: Diagnostic Services and Consumer Products. The company provides a range of TK supplements, including Legendz XL for male sexual health; and Triple Edge XL, an energy and stamina booster. It offers contract manufacturing services, such as product development, pre-commercialization, production, warehousing, and distribution; COVID-19 diagnostic information services to a range of customers, including health plans, third party payers, and government organizations; and respiratory pathogen panel molecular testing services, as well as personal genomics products and services. In addition, the company involved in the research, development, manufacture, distribution, marketing, and sale of over the counter (OTC) consumer healthcare products and dietary supplements; and retail operations. The company was formerly known as The Quigley Corporation. ProPhase Labs, Inc. was founded in 1989 and is headquartered in Garden City, New York.