Critical Analysis: Sol-Gel Technologies (NASDAQ:SLGL) vs. Aspen Pharmacare (OTCMKTS:APNHY)

Sol-Gel Technologies (NASDAQ:SLGL) and Aspen Pharmacare (OTCMKTS:APNHY) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.

Profitability

This table compares Sol-Gel Technologies and Aspen Pharmacare’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sol-Gel Technologies	-107.78%	-43.98%	-35.28%
Aspen Pharmacare	N/A	N/A	N/A

Valuation and Earnings

This table compares Sol-Gel Technologies and Aspen Pharmacare”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sol-Gel Technologies	$12.10 million	1.70	-$10.58 million	($4.70)	-1.57
Aspen Pharmacare	$2.39 billion	N/A	$235.61 million	N/A	N/A

Aspen Pharmacare has higher revenue and earnings than Sol-Gel Technologies.

Risk and Volatility

Sol-Gel Technologies has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500. Comparatively, Aspen Pharmacare has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for Sol-Gel Technologies and Aspen Pharmacare, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sol-Gel Technologies	0	0	1	0	3.00
Aspen Pharmacare	0	0	0	0	0.00

Sol-Gel Technologies presently has a consensus price target of $40.00, indicating a potential upside of 441.27%. Given Sol-Gel Technologies’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Sol-Gel Technologies is more favorable than Aspen Pharmacare.

Insider & Institutional Ownership

26.2% of Sol-Gel Technologies shares are owned by institutional investors. 66.5% of Sol-Gel Technologies shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Sol-Gel Technologies beats Aspen Pharmacare on 6 of the 11 factors compared between the two stocks.

About Sol-Gel Technologies

Sol-Gel Technologies Ltd., together with its subsidiary Sol-Gel Technologies Inc., develops topical dermatological drugs for patients with severe skin conditions in Israel. The company offers Twyneo, a once-daily, non-antibiotic topical cream for the treatment of acne vulgaris; and Epsolay, a once-daily topical cream for the treatment of papulopustular (subtype II) rosacea. It also develops SGT-610 that is in Phase 3 clinical trials for the treatment of Gorlin Syndrome; and SGT-210, which has completed Phase I clinical trial, to treat rare hyperkeratinization disorders, such as Darier, PC, PPK, Olmsted, etc. In addition, the company is also involved in the development of generic topical dermatological drug products. It has collaboration with Padagis Israel Pharmaceuticals Ltd; and license agreements with Galderma Holding SA and Searchlight Pharma Inc. Sol-Gel Technologies Ltd. was incorporated in 1997 and is headquartered in Ness Ziona, Israel.

About Aspen Pharmacare

Aspen Pharmacare Holdings Limited, together with its subsidiaries, manufactures and supplies specialty and branded pharmaceutical products worldwide. It operates in Commercial Pharmaceuticals and Manufacturing segments. The company provides general anesthetics, muscle relaxants, and topical agents under the Anaesthetics brand; and a range of injectable anticoagulants with a focus on low molecular weight heparins, Xa inhibitors, and heparin derivatives under the Thrombosis brand. It also offers branded consumer, prescription, and over-the-counter products under the regional brands, such as Circadin, Foxair, Maltofer, Mybulen, and Zyloric for various types of anesthetic comprises sleeping aid, respiratory, iron supplement, analgesic, and uric acid production inhibitor. In addition, the company manufactures and sells active pharmaceutical ingredients and finished dose form products to third-party customers. Aspen Pharmacare Holdings Limited was founded in 1850 and is headquartered in Durban, South Africa.