Critical Review: Veru (NASDAQ:VERU) vs. Elanco Animal Health (NYSE:ELAN)

Elanco Animal Health (NYSE:ELAN – Get Free Report) and Veru (NASDAQ:VERU – Get Free Report) are both healthcare companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, risk, analyst recommendations and earnings.

Institutional & Insider Ownership

97.5% of Elanco Animal Health shares are held by institutional investors. Comparatively, 47.2% of Veru shares are held by institutional investors. 1.1% of Elanco Animal Health shares are held by insiders. Comparatively, 14.2% of Veru shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings for Elanco Animal Health and Veru, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Elanco Animal Health 1 2 8 1 2.75
Veru 1 0 3 0 2.50

Elanco Animal Health presently has a consensus target price of $29.70, indicating a potential upside of 29.59%. Veru has a consensus target price of $24.50, indicating a potential upside of 895.93%. Given Veru’s higher probable upside, analysts clearly believe Veru is more favorable than Elanco Animal Health.

Earnings and Valuation

This table compares Elanco Animal Health and Veru”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Elanco Animal Health $4.71 billion 2.43 -$232.00 million ($0.41) -55.90
Veru N/A N/A -$22.73 million ($0.69) -3.57

Veru has lower revenue, but higher earnings than Elanco Animal Health. Elanco Animal Health is trading at a lower price-to-earnings ratio than Veru, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Elanco Animal Health has a beta of 1.7, meaning that its stock price is 70% more volatile than the S&P 500. Comparatively, Veru has a beta of -1.21, meaning that its stock price is 221% less volatile than the S&P 500.

Profitability

This table compares Elanco Animal Health and Veru’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Elanco Animal Health -3.96% 8.13% 3.99%
Veru N/A -47.58% -35.83%

Summary

Elanco Animal Health beats Veru on 9 of the 14 factors compared between the two stocks.

About Elanco Animal Health

(Get Free Report)

Elanco Animal Health Incorporated, an animal health company, innovates, develops, manufactures, and markets products for pets and farm animals. It offers pet health disease prevention products, such as parasiticide and vaccine products that protect pets from worms, fleas, and ticks under the Seresto, Advantage, Advantix, and Advocate brands; pet health therapeutics for pain, osteoarthritis, ear infections, cardiovascular, and dermatology indications in canines and felines under the Galliprant and Claro brands; vaccines, antibiotics, parasiticides, and other products for use in poultry and aquaculture production, as well as nutritional health products, including enzymes, probiotics, and prebiotics; and a range of vaccines, antibiotics, implants, parasiticides, and other products used in ruminant and swine production under the Rumensin and Baytril brands. The company sells its products to third-party distributors; veterinarians; and farm animal producers, including beef and dairy farmers, as well as pork, poultry, and aquaculture operations. Elanco Animal Health Incorporated was founded in 1954 and is headquartered in Greenfield, Indiana.

About Veru

(Get Free Report)

Veru Inc., a late clinical stage biopharmaceutical company, focuses on developing medicines for treatment of metabolic diseases, oncology, and acute respiratory distress syndrome (ARDS). Its marketed products comprise FC2 female condom for the dual protection against unplanned pregnancy and the transmission of sexually transmitted infections. The company’s development program includes enobosarm, a selective androgen receptor modulator for treatment of augment fat loss and to prevent muscle loss in sarcopenic obese and overweight elderly patients; Enobosarm, a selective androgen receptor modulator for the treatment of AR+ ER+ HER2- metastatic breast cancer; and sabizabulin, a microtubule disruptor for the treatment of hospitalized patients with viral lung infection on oxygen support who are at high risk for viral induced ARDS and death. The company was formerly known as The Female Health Company and changed its name to Veru Inc. in July 2017. Veru Inc. was incorporated in 1971 and is headquartered in Miami, Florida.

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