Analyzing ANI Pharmaceuticals (NASDAQ:ANIP) & Cumberland Pharmaceuticals (NASDAQ:CPIX)

ANI Pharmaceuticals (NASDAQ:ANIP) and Cumberland Pharmaceuticals (NASDAQ:CPIX) are both small-cap healthcare companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, dividends, analyst recommendations, institutional ownership, risk and valuation.

Analyst Recommendations

This is a breakdown of current ratings and price targets for ANI Pharmaceuticals and Cumberland Pharmaceuticals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ANI Pharmaceuticals	0	4	5	0	2.56
Cumberland Pharmaceuticals	1	0	0	0	1.00

ANI Pharmaceuticals currently has a consensus price target of $105.57, suggesting a potential upside of 50.41%. Given ANI Pharmaceuticals’ stronger consensus rating and higher probable upside, equities analysts clearly believe ANI Pharmaceuticals is more favorable than Cumberland Pharmaceuticals.

Risk & Volatility

ANI Pharmaceuticals has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500. Comparatively, Cumberland Pharmaceuticals has a beta of 0.13, meaning that its stock price is 87% less volatile than the S&P 500.

Profitability

This table compares ANI Pharmaceuticals and Cumberland Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ANI Pharmaceuticals	11.07%	27.37%	10.47%
Cumberland Pharmaceuticals	-34.40%	-28.81%	-9.25%

Earnings & Valuation

This table compares ANI Pharmaceuticals and Cumberland Pharmaceuticals”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ANI Pharmaceuticals	$883.37 million	1.83	$78.34 million	$4.64	15.13
Cumberland Pharmaceuticals	$44.52 million	2.15	-$2.84 million	($0.71)	-9.00

ANI Pharmaceuticals has higher revenue and earnings than Cumberland Pharmaceuticals. Cumberland Pharmaceuticals is trading at a lower price-to-earnings ratio than ANI Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

76.0% of ANI Pharmaceuticals shares are held by institutional investors. Comparatively, 15.5% of Cumberland Pharmaceuticals shares are held by institutional investors. 8.1% of ANI Pharmaceuticals shares are held by insiders. Comparatively, 42.1% of Cumberland Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

ANI Pharmaceuticals beats Cumberland Pharmaceuticals on 12 of the 14 factors compared between the two stocks.

About ANI Pharmaceuticals

ANI Pharmaceuticals, Inc., a biopharmaceutical company, develops, manufactures, and markets branded and generic prescription pharmaceuticals in the United States and Canada. The company manufactures oral solid dose products; semi-solids, liquids, and topicals; controlled substances; and potent products, as well as performs contract development and manufacturing of pharmaceutical products. It markets its products through retail pharmacy chains, wholesalers, distributors and mail order pharmacies, group purchasing organizations, specialty pharmacies, and hospitals. ANI Pharmaceuticals, Inc. was incorporated in 2001 and is headquartered in Baudette, Minnesota.

About Cumberland Pharmaceuticals

Cumberland Pharmaceuticals Inc., a specialty pharmaceutical company, focuses on the acquisition, development, and commercialization of prescription products for hospital acute care, gastroenterology, and oncology in the United States and internationally. The company offers Acetadote, an injection for the treatment of acetaminophen poisoning; Caldolor, an injection for the treatment of pain and fever; Kristalose, a prescription laxative oral solution for the treatment of constipation; Omeclamox-Pak for the treatment of Helicobacter pylori infection and duodenal ulcer disease; Vaprisol, an injection for treating euvolemic and hypervolemic hyponatremia; Sancuso, an injection for the treatment of chemotherapy treatment; and Vibativ, an injection for the treatment of certain serious bacterial infections, including hospital-acquired and ventilator-associated bacterial pneumonia, as well as complicated skin and skin structure infections. It develops RediTrex injection for the treatment of active rheumatoid, juvenile idiopathic, and severe psoriatic arthritis, as well as disabling psoriasis. In addition, the company is developing ifetroban, a product candidate that is in phase II clinical trial for the treatment of aspirin-exacerbated respiratory disease, systemic sclerosis, and duchenne muscular dystrophy; and has completed phase II clinical trial for the treatment of hepatorenal syndrome and portal hypertension. Further, it develops a clinical program for the use of ifetroban to treat progressive fibrosing interstitial lung diseases. The company was incorporated in 1999 and is headquartered in Nashville, Tennessee.