Prestige Consumer Healthcare (NYSE:PBH) versus ArQule (NYSE:ARQL) Critical Analysis
Prestige Consumer Healthcare (NYSE:PBH) and ArQule (NASDAQ:ARQL) are both mid-cap consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.
This table compares Prestige Consumer Healthcare and ArQule’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Prestige Consumer Healthcare||-3.57%||13.17%||4.25%|
Prestige Consumer Healthcare has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500. Comparatively, ArQule has a beta of 2.49, meaning that its stock price is 149% more volatile than the S&P 500.
Institutional & Insider Ownership
74.6% of ArQule shares are held by institutional investors. 1.1% of Prestige Consumer Healthcare shares are held by company insiders. Comparatively, 13.8% of ArQule shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This is a summary of current ratings and price targets for Prestige Consumer Healthcare and ArQule, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Prestige Consumer Healthcare||0||2||2||0||2.50|
Prestige Consumer Healthcare currently has a consensus target price of $95.67, indicating a potential upside of 125.26%. ArQule has a consensus target price of $17.50, indicating a potential downside of 12.50%. Given Prestige Consumer Healthcare’s stronger consensus rating and higher probable upside, research analysts plainly believe Prestige Consumer Healthcare is more favorable than ArQule.
Earnings & Valuation
This table compares Prestige Consumer Healthcare and ArQule’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Prestige Consumer Healthcare||$975.78 million||2.19||-$35.80 million||$2.78||15.28|
|ArQule||$25.76 million||93.85||-$15.48 million||($0.16)||-125.00|
ArQule has lower revenue, but higher earnings than Prestige Consumer Healthcare. ArQule is trading at a lower price-to-earnings ratio than Prestige Consumer Healthcare, indicating that it is currently the more affordable of the two stocks.
Prestige Consumer Healthcare beats ArQule on 8 of the 14 factors compared between the two stocks.
About Prestige Consumer Healthcare
Prestige Consumer Healthcare Inc., together with its subsidiaries, develops, manufactures, markets, distributes, and sells over-the-counter (OTC) healthcare and household cleaning products in North America, Australia, and internationally. It operates in three segments: North American OTC Healthcare, International OTC Healthcare, and Household Cleaning. The company's OTC healthcare products include BC/Goody's analgesic powders, Beano for gas prevention, Boudreaux's Butt Paste baby ointments, Chloraseptic sore throat liquids/lozenges, Clear Eyes for eye allergy/redness relief, Compound W for wart removal, Debrox for ear wax removal, DenTek PEG oral care, Dramamine for motion sickness relief, and Efferdent denture cleanser tablets. Its OTC healthcare products portfolio also comprises Fess nasal saline spray, Fleet adult enemas/suppositories, Gaviscon upset stomach remedies, Hydralyte for oral rehydration, Luden's cough drops, Monistat vaginal anti-fungal, Nix lice/parasite treatments, Pedia-Lax pediatric laxatives, Summer's Eve for feminine hygiene, Little Remedies pediatric OTC products, and The Doctor's NightGuard dental protectors. In addition, the company offers household cleaning products, such as abrasive tub and tile cleaners under the Comet name, as well as Chore Boy, and Spic and Span names. It serves mass merchandisers; and drug, food, dollar, convenience, and club stores. The company was formerly known as Prestige Brands Holdings, Inc. and changed its name to Prestige Consumer Healthcare Inc. in August 2018. Prestige Consumer Healthcare Inc. was founded in 1996 and is headquartered in Tarrytown, New York.
ArQule, Inc., a biopharmaceutical company, researches and develops therapeutics for the treatment of cancer and rare diseases in the United States. The company's pipeline includes ARQ 531, an orally bioavailable, potent and reversible dual inhibitor of wild type and C481S-mutant Bruton's tyrosine kinase that is in Phase I trial for patients with B-cell malignancies refractory to other therapeutic options; and miransertib (ARQ 092), a potent and selective inhibitor of the protein kinase B (AKT), a serine/threonine kinase, which is in Phase Ib in combination with the hormonal therapy and anastrozole in patients with advanced endometrial cancer. Its pipeline also comprises ARQ 75, a potent and selective inhibitor of AKT that is in Phase I clinical development for solid tumors harboring AKT, phosphoinositide 3-kinase or phosphatase, and tensin homolog loss mutations. In addition, the company's pipeline includes Derazantinib (ARQ 087), a multi-kinase inhibitor designed to preferentially inhibit the fibroblast growth factor receptor (FGFR) family of kinases that is in a registrational clinical trial in intrahepatic cholangiocarcinoma in patients with FGFR2 fusions. ArQule, Inc. has license agreements with Basilea Pharmaceutica Limited and Roivant Sciences Ltd. The company was founded in 1993 and is headquartered in Burlington, Massachusetts.
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