Head-To-Head Survey: Perrigo (NYSE:PRGO) versus Amylyx Pharmaceuticals (NASDAQ:AMLX)

Perrigo (NYSE:PRGO) and Amylyx Pharmaceuticals (NASDAQ:AMLX) are both medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, dividends, profitability, risk and institutional ownership.

Dividends

Perrigo pays an annual dividend of $1.16 per share and has a dividend yield of 4.3%. Amylyx Pharmaceuticals pays an annual dividend of $1.02 per share and has a dividend yield of 21.0%. Perrigo pays out -88.5% of its earnings in the form of a dividend. Amylyx Pharmaceuticals pays out -32.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Perrigo has raised its dividend for 23 consecutive years.

Institutional & Insider Ownership

95.9% of Perrigo shares are held by institutional investors. Comparatively, 95.8% of Amylyx Pharmaceuticals shares are held by institutional investors. 0.4% of Perrigo shares are held by company insiders. Comparatively, 11.7% of Amylyx Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Perrigo has a beta of 0.45, meaning that its share price is 55% less volatile than the S&P 500. Comparatively, Amylyx Pharmaceuticals has a beta of -0.6, meaning that its share price is 160% less volatile than the S&P 500.

Profitability

This table compares Perrigo and Amylyx Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Perrigo	-3.64%	7.38%	3.18%
Amylyx Pharmaceuticals	N/A	-36.97%	-29.61%

Earnings and Valuation

This table compares Perrigo and Amylyx Pharmaceuticals”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Perrigo	$4.34 billion	0.86	-$12.70 million	($1.31)	-20.63
Amylyx Pharmaceuticals	-$1.27 million	-339.18	$49.27 million	($3.11)	-1.56

Amylyx Pharmaceuticals has lower revenue, but higher earnings than Perrigo. Perrigo is trading at a lower price-to-earnings ratio than Amylyx Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Perrigo and Amylyx Pharmaceuticals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Perrigo	0	3	1	0	2.25
Amylyx Pharmaceuticals	0	1	5	2	3.13

Perrigo presently has a consensus target price of $33.00, suggesting a potential upside of 22.11%. Amylyx Pharmaceuticals has a consensus target price of $9.83, suggesting a potential upside of 103.17%. Given Amylyx Pharmaceuticals’ stronger consensus rating and higher possible upside, analysts clearly believe Amylyx Pharmaceuticals is more favorable than Perrigo.

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.

About Amylyx Pharmaceuticals

Amylyx Pharmaceuticals, Inc., a commercial-stage biotechnology company, engages in the discovery and development of treatment for amyotrophic lateral sclerosis (ALS) and neurodegenerative diseases. The company's products include RELYVRIO, a dual UPR-Bax apoptosis inhibitor composed of sodium phenylbutyrate and taurursodiol for the treatment of ALS in adults in the United States and marketed as ALBRIOZA for the treatment of ALS in Canada. It is also developing AMX0114 for other neurodegenerative diseases. Amylyx Pharmaceuticals, Inc. was founded in 2013 and is headquartered in Cambridge, Massachusetts.