Sumitomo Pharma (OTCMKTS:DNPUF) & Elanco Animal Health (NYSE:ELAN) Critical Analysis

Sumitomo Pharma (OTCMKTS:DNPUF) and Elanco Animal Health (NYSE:ELAN) are both healthcare companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.

Earnings and Valuation

This table compares Sumitomo Pharma and Elanco Animal Health”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sumitomo Pharma	N/A	N/A	N/A	$58.19	0.14
Elanco Animal Health	$4.71 billion	2.80	-$232.00 million	($0.50)	-52.85

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

Analyst Recommendations

This is a summary of current ratings and target prices for Sumitomo Pharma and Elanco Animal Health, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sumitomo Pharma	0	0	0	0	0.00
Elanco Animal Health	1	2	9	1	2.77

Elanco Animal Health has a consensus target price of $28.73, suggesting a potential upside of 8.72%. Given Elanco Animal Health’s stronger consensus rating and higher probable upside, analysts plainly believe Elanco Animal Health is more favorable than Sumitomo Pharma.

Profitability

This table compares Sumitomo Pharma and Elanco Animal Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sumitomo Pharma	N/A	N/A	N/A
Elanco Animal Health	-4.95%	7.42%	3.66%

Insider and Institutional Ownership

7.6% of Sumitomo Pharma shares are owned by institutional investors. Comparatively, 97.5% of Elanco Animal Health shares are owned by institutional investors. 1.1% of Elanco Animal Health shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Elanco Animal Health beats Sumitomo Pharma on 9 of the 12 factors compared between the two stocks.

About Sumitomo Pharma

Sumitomo Pharma Co., Ltd. engages in the manufacture and sale of pharmaceuticals, food ingredients and additives, veterinary medicines, and others in Japan, North America, China, and internationally. The company offers pharmaceutical products, such as therapeutic agents for Parkinson's disease, uterine fibroids, depression, type 2 diabetes, systemic fungal infection, hypertension, pruritus, advanced prostate cancer, overactive bladder, chronic obstructive pulmonary disease, angina pectoris, and arrhythmia. It provides products for atypical antipsychotic, cultured thymus tissue for pediatric congenital athymia, antiepileptic, and carbapenem antibiotic; and Fabry disease drugs. In addition, the company offers food ingredients and additives, such as polysaccharides, as well as seasonings, such as soups or bouillons; and chemical product materials, which include pharmaceutical excipients, personal care products, coatings and industrial materials, and electronic materials. Further, it provides veterinary medicines for companion animals, such as dogs and cats; and livestock comprising cattle, swine, poultry, horses, and aquacultured fish. It has partnerships with Keio University; RIKEN; Kyoto University; and collaboration and license agreement with Otsuka Pharmaceutical Co., Ltd. The company has a strategic alliance with Roivant Sciences Ltd. The company was formerly known as Sumitomo Dainippon Pharma Co., Ltd. and changed its name to Sumitomo Pharma Co., Ltd. in April 2022. The company was incorporated in 1897 and is headquartered in Osaka, Japan. Sumitomo Pharma Co., Ltd. is a subsidiary of Sumitomo Chemical Company, Limited.

About Elanco Animal Health

Elanco Animal Health Incorporated, an animal health company, innovates, develops, manufactures, and markets products for pets and farm animals. It offers pet health disease prevention products, such as parasiticide and vaccine products that protect pets from worms, fleas, and ticks under the Seresto, Advantage, Advantix, and Advocate brands; pet health therapeutics for pain, osteoarthritis, ear infections, cardiovascular, and dermatology indications in canines and felines under the Galliprant and Claro brands; vaccines, antibiotics, parasiticides, and other products for use in poultry and aquaculture production, as well as nutritional health products, including enzymes, probiotics, and prebiotics; and a range of vaccines, antibiotics, implants, parasiticides, and other products used in ruminant and swine production under the Rumensin and Baytril brands. The company sells its products to third-party distributors; veterinarians; and farm animal producers, including beef and dairy farmers, as well as pork, poultry, and aquaculture operations. Elanco Animal Health Incorporated was founded in 1954 and is headquartered in Greenfield, Indiana.