Elite Pharmaceuticals (OTCMKTS:ELTP – Get Free Report) and Akebia Therapeutics (NASDAQ:AKBA – Get Free Report) are both small-cap medical companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.
Institutional & Insider Ownership
0.0% of Elite Pharmaceuticals shares are owned by institutional investors. Comparatively, 33.9% of Akebia Therapeutics shares are owned by institutional investors. 14.4% of Elite Pharmaceuticals shares are owned by company insiders. Comparatively, 4.3% of Akebia Therapeutics shares are owned 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.
Analyst Recommendations
This is a summary of recent recommendations for Elite Pharmaceuticals and Akebia Therapeutics, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Elite Pharmaceuticals | 0 | 0 | 0 | 0 | 0.00 |
| Akebia Therapeutics | 2 | 0 | 3 | 0 | 2.20 |
Valuation & Earnings
This table compares Elite Pharmaceuticals and Akebia Therapeutics”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Elite Pharmaceuticals | $148.87 million | 2.67 | $44.87 million | $0.02 | 18.45 |
| Akebia Therapeutics | $236.20 million | 1.61 | -$5.34 million | ($0.08) | -17.75 |
Elite Pharmaceuticals has higher earnings, but lower revenue than Akebia Therapeutics. Akebia Therapeutics is trading at a lower price-to-earnings ratio than Elite Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Elite Pharmaceuticals has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500. Comparatively, Akebia Therapeutics has a beta of 0.23, meaning that its share price is 77% less volatile than the S&P 500.
Profitability
This table compares Elite Pharmaceuticals and Akebia Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Elite Pharmaceuticals | 30.14% | 37.06% | 21.67% |
| Akebia Therapeutics | -8.83% | -62.72% | -5.66% |
Summary
Elite Pharmaceuticals beats Akebia Therapeutics on 9 of the 14 factors compared between the two stocks.
About Elite Pharmaceuticals
Elite Pharmaceuticals, Inc., a specialty pharmaceutical company, engages in the development, manufacture, and sale of oral, controlled-release products, and generic pharmaceuticals. The company operates in two segments, Abbreviated New Drug Applications for Generic Pharmaceuticals and New Drug Applications for Branded Pharmaceuticals. It owns, licenses, manufactures, and sells various generic and oral dose pharmaceuticals products, such as Phentermine HCl 37.5mg tablets, and 15mg and 30mg capsules for the treatment of bariatrics under Adipex-P brand; Phendimetrazine Tartrate 35mg tablets for bariatrics under the Bontril brand; Naltrexone HCl 50mg tablets for the treatment of pains under the Revia brand; and Isradipine 2.5mg and 5mg capsules for cardiovascular diseases. The company also provides Trimipramine Maleate Immediate Release antidepressant capsules under the Surmontil brand; Dextroamphetamine Saccharate, Amphetamine Aspartate, Dextroamphetamine Sulfate, and Amphetamine Sulfate Immediate Release tablets under the Adderall brand, as well as Dextroamphetamine Saccharate, Amphetamine Aspartate, Dextroamphetamine Sulfate, Amphetamine Sulfate Extended Release capsules under the Adderall XR brand for central nervous system diseases; Dantrolene Sodium capsules for muscle relaxant under the Dantrium brand; SequestOX, an immediate release Oxycodone with Naltrexone; Loxapine Succinate capsules for treating antipsychotic under the Loxapine brand; Acetaminophen and Codeine Phosphate for the management of mild to moderate pain; and antibiotic products. In addition, it manufactures controlled-release products on a contract basis for third parties in the areas of pain, allergy, bariatric, attention deficit, and infection. Further, the company is developing a range of abuse deterrent opioid products. Elite Pharmaceuticals, Inc. was incorporated in 1997 and is headquartered in Northvale, New Jersey.
About Akebia Therapeutics
Akebia Therapeutics, Inc., a biopharmaceutical company, focuses on the development and commercialization of therapeutics for patients with kidney diseases. The company’s lead product investigational product candidate is Vafseo (vadadustat), an oral hypoxia-inducible factor prolyl hydroxylase, which is in Phase III development for the treatment of anemia due to chronic kidney disease (CKD) in dialysis-dependent and non-dialysis dependent patients. It offers Auryxia, a ferric citrate that is used to control the serum phosphorus levels in adult patients with DD-CKD on dialysis; and the treatment of iron deficiency anemia in adult patients with CKD not on dialysis. The company’s product pipeline includes AKB-9090, a drug targeting critical-care indications; and AKB-10108, a drug targeting conditions related to premature birth. It has collaboration agreements with Mitsubishi Tanabe Pharma Corporation for the development and commercialization of vadadustat in Japan and other Asian countries, as well as research and license agreement with Janssen Pharmaceutica NV for the development and commercialization of hypoxia-inducible factor prolyl hydroxylase targeted compounds worldwide. Akebia Therapeutics, Inc. was incorporated in 2007 and is headquartered in Cambridge, Massachusetts.
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