Critical Comparison: Prestige Consumer Healthcare (NYSE:PBH) and Oramed Pharmaceuticals (NASDAQ:ORMP)

Oramed Pharmaceuticals (NASDAQ:ORMP) and Prestige Consumer Healthcare (NYSE:PBH) are both medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, risk, dividends, institutional ownership and profitability.

Institutional and Insider Ownership

12.7% of Oramed Pharmaceuticals shares are owned by institutional investors. Comparatively, 100.0% of Prestige Consumer Healthcare shares are owned by institutional investors. 17.8% of Oramed Pharmaceuticals shares are owned by insiders. Comparatively, 1.4% of Prestige Consumer Healthcare shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings for Oramed Pharmaceuticals and Prestige Consumer Healthcare, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oramed Pharmaceuticals	0	0	0	0	0.00
Prestige Consumer Healthcare	1	1	4	0	2.50

Prestige Consumer Healthcare has a consensus price target of $94.80, suggesting a potential upside of 50.61%. Given Prestige Consumer Healthcare’s stronger consensus rating and higher probable upside, analysts clearly believe Prestige Consumer Healthcare is more favorable than Oramed Pharmaceuticals.

Risk & Volatility

Oramed Pharmaceuticals has a beta of 1.69, suggesting that its share price is 69% more volatile than the S&P 500. Comparatively, Prestige Consumer Healthcare has a beta of 0.46, suggesting that its share price is 54% less volatile than the S&P 500.

Profitability

This table compares Oramed Pharmaceuticals and Prestige Consumer Healthcare’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Oramed Pharmaceuticals	N/A	-19.37%	-18.28%
Prestige Consumer Healthcare	19.02%	12.69%	6.79%

Valuation and Earnings

This table compares Oramed Pharmaceuticals and Prestige Consumer Healthcare”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oramed Pharmaceuticals	$1.34 million	73.74	-$19.06 million	($0.35)	-6.89
Prestige Consumer Healthcare	$1.14 billion	2.72	$214.60 million	$4.26	14.78

Prestige Consumer Healthcare has higher revenue and earnings than Oramed Pharmaceuticals. Oramed Pharmaceuticals is trading at a lower price-to-earnings ratio than Prestige Consumer Healthcare, indicating that it is currently the more affordable of the two stocks.

Summary

Prestige Consumer Healthcare beats Oramed Pharmaceuticals on 11 of the 14 factors compared between the two stocks.

About Oramed Pharmaceuticals

Oramed Pharmaceuticals Inc. engages in the research and development of pharmaceutical solutions for the treatment of diabetes and for the use of orally ingestible capsules for delivery of polypeptides. The company's product portfolio includes ORMD-0801, an oral insulin capsule, which is in phase III clinical trial for the treatment of individuals with diabetes, as well as in phase II clinical trial for the treatment of non-alcoholic steatohepatitis; and ORA-D-013-1 and ORA-D-013-2, which have completed phase II clinical trial for the treatment of type 2 diabetes. It has license agreements with Oravax Medical Inc. to commercialize oral vaccines for COVID-19 and other novel coronaviruses. Oramed Pharmaceuticals Inc. was incorporated in 2002 and is headquartered in New York.

About Prestige Consumer Healthcare

Prestige Consumer Healthcare Inc., together with its subsidiaries, develops, manufactures, markets, distributes, and sells over-the-counter (OTC) health and personal care products in the United States and internationally. The company operates in two segments, North American OTC Healthcare and International OTC Healthcare. It offers BC/Goody's analgesic powders, Boudreaux's Butt Paste baby ointments, Chloraseptic sore throat liquids and lozenges, Clear Eyes for eye redness relief, Compound W wart removals, DenTek for PEG oral care, Debrox ear wax removals, and Dramamine for motion sickness relief. The company also provides Fleet adult enemas/suppositories, Gaviscon upset stomach remedies, Luden's cough drops, Monistat vaginal anti-fungal, Nix lice/parasite treatments, Summer's Eve feminine hygiene, TheraTears dry eye relief, Fess nasal saline spray and washes, and Hydralyte for oral rehydration products. It sells its products through mass merchandisers; and drug, food, dollar, convenience, and club stores, as well as e-commerce channels. The company was formerly known as Prestige Brands Holdings, Inc. and changed its name to Prestige Consumer Healthcare Inc. in August 2018. Prestige Consumer Healthcare Inc. was founded in 1996 and is headquartered in Tarrytown, New York.