Perrigo (NYSE:PRGO) and Insulet (NASDAQ:PODD) Head-To-Head Analysis

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

Risk & Volatility

Insulet has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500. Comparatively, Perrigo has a beta of 0.43, suggesting that its stock price is 57% less volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Insulet	$2.07 billion	10.83	$418.30 million	$3.29	96.84
Perrigo	$4.37 billion	0.68	-$171.80 million	($0.58)	-37.32

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

Profitability

This table compares Insulet and Perrigo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Insulet	10.01%	23.78%	9.30%
Perrigo	-1.86%	9.09%	3.96%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Insulet and Perrigo, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Insulet	0	3	18	1	2.91
Perrigo	1	2	2	0	2.20

Insulet presently has a consensus price target of $348.05, suggesting a potential upside of 9.25%. Perrigo has a consensus price target of $34.00, suggesting a potential upside of 57.07%. Given Perrigo’s higher possible upside, analysts plainly believe Perrigo is more favorable than Insulet.

Insider & Institutional Ownership

95.9% of Perrigo shares are held by institutional investors. 0.4% of Insulet shares are held by company insiders. Comparatively, 0.7% of Perrigo shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Insulet beats Perrigo on 11 of the 15 factors compared between the two stocks.

About Insulet

Insulet Corporation develops, manufactures, and sells insulin delivery systems for people with insulin-dependent diabetes. The company's Omnipod platform includes the Omnipod 5 Automated Insulin Delivery System (Omnipod 5) which includes a proprietary AID algorithm embedded in the Pod that integrates with a third-party continuous glucose monitor to obtain glucose values through wireless bluetooth communication; Omnipod DASH that features a bluetooth enabled Pod that is controlled by a smartphone-like Personal Diabetes Manager with a color touch screen user interface; and Omnipod GO, a standalone, wearable, insulin delivery system that provides a fixed rate of continuous rapid-acting insulin for 72 hours. The company sells its products primarily through independent distributors and pharmacy channels, as well as directly in the United States, Canada, Europe, the Middle East, Australia, and internationally. Insulet Corporation was incorporated in 2000 and is headquartered in Acton, Massachusetts.

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.