Head to Head Survey: DARA Biosciences (DARA) versus Mallinckrodt PLC (MNK)

DARA Biosciences (NASDAQ: DARA) and Mallinckrodt PLC (NYSE:MNK) are both specialty & advanced pharmaceuticals companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, profitability, risk, institutional ownership, dividends, valuation and earnings.

Risk & Volatility

DARA Biosciences has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500. Comparatively, Mallinckrodt PLC has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500.

Valuation & Earnings

This table compares DARA Biosciences and Mallinckrodt PLC’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
DARA Biosciences N/A N/A N/A ($0.52) -1.69
Mallinckrodt PLC $829.90 million 2.49 -$153.20 million $3.70 5.88

DARA Biosciences has higher revenue, but lower earnings than Mallinckrodt PLC. DARA Biosciences is trading at a lower price-to-earnings ratio than Mallinckrodt PLC, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

98.0% of Mallinckrodt PLC shares are owned by institutional investors. 0.8% of Mallinckrodt PLC shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for DARA Biosciences and Mallinckrodt PLC, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DARA Biosciences 0 0 0 0 N/A
Mallinckrodt PLC 0 8 10 0 2.56

Mallinckrodt PLC has a consensus target price of $49.31, suggesting a potential upside of 126.59%. Given Mallinckrodt PLC’s higher probable upside, analysts clearly believe Mallinckrodt PLC is more favorable than DARA Biosciences.

Profitability

This table compares DARA Biosciences and Mallinckrodt PLC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DARA Biosciences -228.42% -145.61% -100.38%
Mallinckrodt PLC 11.43% 14.79% 5.07%

Summary

Mallinckrodt PLC beats DARA Biosciences on 10 of the 10 factors compared between the two stocks.

DARA Biosciences Company Profile

DARA BioSciences Inc is specialty pharmaceutical company based in the United States. The Company’s primary focus is on the commercialization of oncology treatment and oncology supportive care pharmaceutical products, including Soltamox, an oral solution of tamoxifen citrate; cancer support therapeutics, including Gelclair, indicated for the treatment of oral mucositis and Bionect, for the management of irritation of the skin as well as first and second degree burns, and Three Mission Pharmacal products, including Ferralet 90 (for anemia), Binosto (alendronate sodium effervescent tablet indicated for the treatment of osteoporosis) and Aquoral (for cancer related dry mouth). The Company has a clinical development asset, KRN5500, which is a Phase II product candidate targeted for treating cancer patients with painful treatment-refractory chronic chemotherapy induced peripheral neuropathy. The Company is a subsidiary of Midatech Pharma Plc.

Mallinckrodt PLC Company Profile

Mallinckrodt public limited company develops, manufactures, markets and distributes branded and generic specialty pharmaceutical products and therapies. The Company focuses on various therapeutic areas, such as autoimmune and rare disease specialty areas, including neurology, rheumatology, nephrology, ophthalmology and pulmonology; immunotherapy and neonatal critical care respiratory therapies; analgesics and hemostasis products, and central nervous system drugs. Its segments include Specialty Brands and Specialty Generics. The Specialty Brands segment produces and markets branded pharmaceutical products and therapies. The Specialty Generics segment produces and markets specialty generic pharmaceuticals and active pharmaceutical ingredient (API) consisting of biologics, medicinal opioids, synthetic controlled substances, acetaminophen and other active ingredients. Its product portfolio includes Acthar, Inomax, Ofirmev, Therakos immunotherapy, Hemostasis products and StrataGraft.

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