Shandong Weigao Medical Polymer (OTCMKTS:SHWGF) and Perrigo (NYSE:PRGO) Financial Review

Shandong Weigao Medical Polymer (OTCMKTS:SHWGF) and Perrigo (NYSE:PRGO) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, profitability, institutional ownership, valuation and earnings.

Insider & Institutional Ownership

95.9% of Perrigo shares are owned by institutional investors. 0.4% of Perrigo shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and target prices for Shandong Weigao Medical Polymer and Perrigo, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shandong Weigao Medical Polymer	0	0	0	0	0.00
Perrigo	2	3	1	0	1.83

Perrigo has a consensus target price of $19.33, indicating a potential upside of 63.66%. Given Perrigo’s stronger consensus rating and higher possible upside, analysts clearly believe Perrigo is more favorable than Shandong Weigao Medical Polymer.

Volatility and Risk

Shandong Weigao Medical Polymer has a beta of -0.05, suggesting that its stock price is 105% less volatile than the S&P 500. Comparatively, Perrigo has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500.

Valuation and Earnings

This table compares Shandong Weigao Medical Polymer and Perrigo”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shandong Weigao Medical Polymer	$1.82 billion	1.12	$314.90 million	N/A	N/A
Perrigo	$4.25 billion	0.38	-$1.43 billion	($10.28)	-1.15

Shandong Weigao Medical Polymer has higher earnings, but lower revenue than Perrigo.

Profitability

This table compares Shandong Weigao Medical Polymer and Perrigo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shandong Weigao Medical Polymer	N/A	N/A	N/A
Perrigo	-33.51%	9.41%	3.97%

Summary

Perrigo beats Shandong Weigao Medical Polymer on 9 of the 12 factors compared between the two stocks.

About Shandong Weigao Medical Polymer

Shandong Weigao Group Medical Polymer Company Limited engages in the research and development, production, wholesale, and sale of medical devices in the People’s Republic of China. It operates through Medical Device Products, Orthopaedic Products, Interventional Products, Pharma Packaging Products, Blood Management Products, and Others segments. The company offers single use medical consumables and materials, including infusion sets, syringes, blood bags and blood component segregators consumable, blood sampling products, prefilled syringes for pre-pack medication and medical needles which mainly include intravenous needles, syringe needles, intravenous catheter needles, blood sampling needles and irregular needles; orthopedic materials and instruments, including trauma products of steel plates and screws, spinal implants, and artificial joints; and blood purification consumables and equipment, including puncture needles, extracorporeal blood circuit for blood purification sets, dialyzers and related consumables. It also provides tumour and blood vessel interventional instruments; flushing syringes; blood collection, irradiation, storage, separation and sterilization products; implantation materials and artificial organs; medical PVC granules, plastic packing bags, and carton boxes; medical polymer materials and products; injection puncture Instruments; medicines; and X-ray based irradiation machines. In addition, it is involved in the finance leasing and factoring business; provision of enterprise management advisory services, logistics and storage, and computer technical services; and sale of electronic products. The company was incorporated in 2000 and is based in Weihai, the People’s Republic of China.

About Perrigo

Perrigo Company plc provides over-the-counter health and wellness solutions to enhance individual well-being in the United States, Europe, and internationally. It operates through Consumer Self-Care Americas and Consumer Self-Care International segments. The company develops, manufactures, markets, and distributes self-care consumer products, such as upper respiratory products, including cough suppressants, expectorants, and sinus and allergy relief; nutrition products consisting of infant formulas and nutritional beverages; digestive health products, including antacids, anti-diarrheal, and anti-heartburn; pain and sleep-aids products comprising pain relievers and fever reducers; and oral care products, which include toothbrushes, toothbrush replacement heads, floss, flossers, whitening products, and toothbrush covers. It also offers healthy lifestyle products, such as smoking cessation, well-being, and weight management products; skin care products consisting of dermatological care, scar management, lice treatment, and other products for various skin conditions; women's health products comprising feminine hygiene and contraceptives; vitamins, minerals, and supplements; rare diseases business; and other miscellaneous self-care products. The company sells its products under the Compeed, Dr. Fresh, Firefly, Good Sense, Good Start, Mederma, Nasonex, Plackers, Prevacid24HR, REACH, Rembrandt, Steripod, Opill, Solpadeine, Coldrex, Physiomer, NiQuitin, ACO, ellaOne, Compeed Stops, XLS, Arterin, Davitamon, Apiserum, Abtei, and Nicorette brands. It also offers contract manufacturing services. The company sells its products through retail drug, supermarket, and mass merchandise chains; e-commerce stores; wholesalers; pharmacies; drug and grocery retailers; and para-pharmacies. The company was formerly known as Perrigo Company and changed its name to Perrigo Company plc in December 2013. Perrigo Company plc was founded in 1887 and is headquartered in Dublin, Ireland.