Ardelyx (NASDAQ:ARDX) & Phibro Animal Health (NASDAQ:PAHC) Critical Contrast

Phibro Animal Health (NASDAQ:PAHC) and Ardelyx (NASDAQ:ARDX) are both small-cap healthcare companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, institutional ownership, analyst recommendations and risk.

Earnings and Valuation

This table compares Phibro Animal Health and Ardelyx”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Phibro Animal Health	$1.52 billion	0.92	$99.72 million	$2.44	14.07
Ardelyx	$407.32 million	2.10	-$61.60 million	($0.22)	-15.61

Phibro Animal Health has higher revenue and earnings than Ardelyx. Ardelyx is trading at a lower price-to-earnings ratio than Phibro Animal Health, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Phibro Animal Health and Ardelyx’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Phibro Animal Health	6.57%	37.86%	9.18%
Ardelyx	-12.35%	-36.00%	-10.77%

Volatility & Risk

Phibro Animal Health has a beta of 0.46, indicating that its stock price is 54% less volatile than the S&P 500. Comparatively, Ardelyx has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Phibro Animal Health and Ardelyx, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Phibro Animal Health	0	2	1	1	2.75
Ardelyx	2	0	9	1	2.75

Phibro Animal Health currently has a consensus target price of $47.67, suggesting a potential upside of 38.86%. Ardelyx has a consensus target price of $13.90, suggesting a potential upside of 304.66%. Given Ardelyx’s higher probable upside, analysts plainly believe Ardelyx is more favorable than Phibro Animal Health.

Insider & Institutional Ownership

99.3% of Phibro Animal Health shares are owned by institutional investors. Comparatively, 58.9% of Ardelyx shares are owned by institutional investors. 50.1% of Phibro Animal Health shares are owned by company insiders. Comparatively, 5.3% of Ardelyx shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Phibro Animal Health beats Ardelyx on 9 of the 13 factors compared between the two stocks.

About Phibro Animal Health

Phibro Animal Health Corporation operates as an animal health and mineral nutrition company in the United States, Israel, Brazil, Ireland, and internationally. It operates through three segments: Animal Health, Mineral Nutrition, and Performance Products. The company develops, manufactures, and markets various products for food and companion animals including poultry, swine, beef and dairy cattle, aquaculture, and dogs. It also offers animal health products, such as antibacterials, anticoccidials, nutritional specialty, and vaccines and vaccine adjuvants for animal’s health and performance, food safety, and animal welfare; and engages in development, manufacturing, and marketing of microbial and bioproducts for various applications serving animal health and nutrition, environmental, industrial, and agricultural customers. In addition, the company develops, manufactures, and markets conventionally licensed and autogenous vaccine products, as well as adjuvants for animal vaccine manufacturers. Further, it provides formulations and concentrations of trace minerals, such as zinc, manganese, copper, iron, and other compounds to fortify the daily feed requirements of their livestock’s diets and maintain optimal balance of trace elements in animals. Additionally, the company offers specialty ingredients for personal care, industrial chemical, and chemical catalyst industries. It sells its animal health and mineral nutrition products through local sales offices to integrated poultry, swine, and cattle producers, as well as through commercial animal feed manufacturers, wholesalers, and distributors. The company was formerly known as Philipp Brothers Chemicals, Inc. and changed its name to Phibro Animal Health Corporation in July 2003. Phibro Animal Health Corporation was founded in 1946 and is headquartered in Teaneck, New Jersey.

About Ardelyx

Ardelyx, Inc., a biopharmaceutical company, discovers, develops, and commercializes medicines to treat gastrointestinal and cardiorenal therapeutic areas in the United States and internationally. The company’s lead product candidate is tenapanor for the treatment of patients with irritable bowel syndrome with constipation. It also develops XPHOZAH, which is in Phase III clinical trial to reduce serum phosphorus in adults with chronic kidney disease (CKD)on dialysis, or hyperphosphatemia; RDX013, a potassium secretagogue, for the treatment of elevated serum potassium, or hyperkalemia, a problem among patients with kidney and/or heart failure; and RDX020, for adult patients with metabolic acidosis, a serious electrolyte disorder. The company has agreements with Kyowa Kirin, Fosun Pharmaceutical Industrial Development Co. Ltd., and Knight Therapeutics, Inc. for the development and commercialization of tenapanor in their respective territories. The company was formerly known as Nteryx, Inc. and changed its name to Ardelyx, Inc. in June 2008. Ardelyx, Inc. was incorporated in 2007 and is headquartered in Waltham, Massachusetts.