Critical Comparison: Insys Therapeutics (INSY) vs. Lipocine (LPCN)
Insys Therapeutics (NASDAQ: INSY) and Lipocine (NASDAQ:LPCN) are both small-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, analyst recommendations, earnings and valuation.
Valuation & Earnings
This table compares Insys Therapeutics and Lipocine’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Insys Therapeutics||$242.27 million||1.90||$7.59 million||($2.55)||-2.46|
Insys Therapeutics has higher revenue and earnings than Lipocine. Lipocine is trading at a lower price-to-earnings ratio than Insys Therapeutics, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
25.6% of Insys Therapeutics shares are held by institutional investors. Comparatively, 22.1% of Lipocine shares are held by institutional investors. 67.9% of Insys Therapeutics shares are held by insiders. Comparatively, 11.3% of Lipocine shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Risk & Volatility
Insys Therapeutics has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500. Comparatively, Lipocine has a beta of 1.93, suggesting that its share price is 93% more volatile than the S&P 500.
This table compares Insys Therapeutics and Lipocine’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and recommmendations for Insys Therapeutics and Lipocine, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Insys Therapeutics presently has a consensus price target of $9.67, suggesting a potential upside of 53.93%. Lipocine has a consensus price target of $19.67, suggesting a potential upside of 466.76%. Given Lipocine’s stronger consensus rating and higher probable upside, analysts clearly believe Lipocine is more favorable than Insys Therapeutics.
Insys Therapeutics Company Profile
Insys Therapeutics, Inc. is a commercial-stage specialty pharmaceutical company. The Company develops and commercializes supportive care products. The Company’s product Subsys, is a sublingual fentanyl spray for breakthrough cancer pain (BTCP) in opioid-tolerant patients and a single-use product that delivers fentanyl, an opioid analgesic, for transmucosal absorption underneath the tongue. The Company markets Subsys through its field sales force focused on supportive care physicians in the United States. Subsys delivers a liquid fentanyl formulation in approximately 100, 200, 400, 600, 800, 1,200 and 1,600 micrograms (mcg) dosages. The Company’s lead dronabinol product candidate is Syndros, which is under review for approval at the Food and Drug Administration. In addition, the Company is evaluating sublingual spray, inhaled and intravenous formulations of dronabinol in preclinical studies.
Lipocine Company Profile
Lipocine Inc. is a specialty pharmaceutical company. The Company is focused on applying its oral drug delivery technology for the development of pharmaceutical products in the area of men’s and women’s health. Its primary development programs are based on oral delivery solutions for bioavailable drugs. Its lead product candidate, LPCN 1021, is an oral testosterone replacement therapy (TRT), designed for twice-a-day dosing and is in Phase III testing. The Company’s additional pipeline candidates include LPCN 1111, an oral testosterone therapy product targeted for once daily dosing, which is in Phase II testing, and LPCN 1107, an oral therapy for the prevention of preterm birth, which is in Phase I testing. These products are based on its Lip’ral promicellar drug delivery technology platform. Lip’ral promicellar technology is a technology based on lipidic compositions, which form an optimal dispersed phase in the gastrointestinal environment for improved absorption of insoluble drugs.
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