Pernix Therapeutics (NASDAQ:PTX) vs. Paratek Pharmaceuticals (NASDAQ:PRTK) Critical Analysis

Pernix Therapeutics (NASDAQ:PTX) and Paratek Pharmaceuticals (NASDAQ:PRTK) are both small-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, valuation, profitability, dividends and earnings.

Profitability

This table compares Pernix Therapeutics and Paratek Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pernix Therapeutics -59.70% N/A -37.01%
Paratek Pharmaceuticals -642.70% -232.61% -39.47%

Risk & Volatility

Pernix Therapeutics has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500. Comparatively, Paratek Pharmaceuticals has a beta of 1.81, suggesting that its stock price is 81% more volatile than the S&P 500.

Institutional & Insider Ownership

20.4% of Pernix Therapeutics shares are owned by institutional investors. Comparatively, 75.0% of Paratek Pharmaceuticals shares are owned by institutional investors. 1.3% of Pernix Therapeutics shares are owned by company insiders. Comparatively, 7.7% of Paratek Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Pernix Therapeutics and Paratek Pharmaceuticals’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Pernix Therapeutics $146.07 million 0.02 -$77.14 million N/A N/A
Paratek Pharmaceuticals $17.12 million 8.03 -$112.36 million ($3.57) -1.19

Pernix Therapeutics has higher revenue and earnings than Paratek Pharmaceuticals.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Pernix Therapeutics and Paratek Pharmaceuticals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pernix Therapeutics 0 0 0 0 N/A
Paratek Pharmaceuticals 0 1 5 0 2.83

Paratek Pharmaceuticals has a consensus price target of $19.33, indicating a potential upside of 354.90%. Given Paratek Pharmaceuticals’ higher possible upside, analysts clearly believe Paratek Pharmaceuticals is more favorable than Pernix Therapeutics.

Summary

Paratek Pharmaceuticals beats Pernix Therapeutics on 6 of the 11 factors compared between the two stocks.

About Pernix Therapeutics

Pernix Therapeutics Holdings, Inc., a specialty pharmaceutical company, focuses on the acquisition, development, and commercialization of prescription drugs primarily for the United States market. It targets underserved therapeutic areas, such as central nervous system (CNS), including pain, neurology, and psychiatry. The company's products comprise Zohydro ER with BeadTek, an opioid agonist indicated for the management of pain; Silenor, a non-narcotic, non-scheduled, and non-addictive prescription sleep aid for the treatment of insomnia characterized by difficulty with sleep maintenance; and Treximet, a fixed dose combination product indicated for the treatment of acute migraine. Pernix Therapeutics Holdings, Inc. markets and sells its non-core products, including generics through its wholly owned subsidiaries; and markets its non-promoted products through distributors and trade partners. It serves drug wholesalers, specialty pharmacies, retail drug stores, mass merchandisers, and grocery store pharmacies. Pernix Therapeutics Holdings, Inc. was founded in 1996 and is headquartered in Morristown, New Jersey.

About Paratek Pharmaceuticals

Paratek Pharmaceuticals, Inc., a commercial-stage biopharmaceutical company, focuses on the development and commercialization of therapeutics based upon biology and tetracycline chemistry in the United States. Its lead product candidates include omadacycline, an intravenous and oral antibiotic for use as a monotherapy antibiotic for acute bacterial skin and skin structure infections, community-acquired bacterial pneumonia, urinary tract infections, and other community-acquired bacterial infections; and Sarecycline, a tetracycline-derived compound designed for use in the treatment of acne and rosacea. The company has license and collaboration agreements with Zai Lab (Shanghai) Co., Ltd. and Allergan plc; license agreement with Tufts University to develop and commercialize products for the treatment or prevention of bacterial or microbial diseases, or medical conditions; and cooperative research and development agreement with the U.S. Army Medical Research Institute of Infectious Diseases to study omadacycline against pathogenic agents causing infectious diseases. Paratek Pharmaceuticals, Inc. was founded in 1996 and is headquartered in Boston, Massachusetts.

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