AdaptHealth (NASDAQ:AHCO – Get Free Report) and Veru (NASDAQ:VERU – Get Free Report) are both small-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, earnings, institutional ownership, analyst recommendations, risk and profitability.
Insider and Institutional Ownership
82.7% of AdaptHealth shares are owned by institutional investors. Comparatively, 47.2% of Veru shares are owned by institutional investors. 1.6% of AdaptHealth shares are owned by insiders. Comparatively, 14.2% of Veru shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares AdaptHealth and Veru’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| AdaptHealth | -2.18% | 3.42% | 1.23% |
| Veru | N/A | -83.63% | -55.90% |
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| AdaptHealth | $3.24 billion | 0.40 | -$70.79 million | ($0.55) | -17.58 |
| Veru | $16.89 million | 2.39 | -$22.73 million | ($1.26) | -1.99 |
Veru has lower revenue, but higher earnings than AdaptHealth. AdaptHealth is trading at a lower price-to-earnings ratio than Veru, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent recommendations for AdaptHealth and Veru, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| AdaptHealth | 1 | 1 | 4 | 0 | 2.50 |
| Veru | 1 | 0 | 3 | 0 | 2.50 |
AdaptHealth currently has a consensus price target of $13.25, indicating a potential upside of 37.02%. Veru has a consensus price target of $22.50, indicating a potential upside of 796.41%. Given Veru’s higher possible upside, analysts plainly believe Veru is more favorable than AdaptHealth.
Volatility and Risk
AdaptHealth has a beta of 1.76, indicating that its share price is 76% more volatile than the S&P 500. Comparatively, Veru has a beta of -1.5, indicating that its share price is 250% less volatile than the S&P 500.
Summary
AdaptHealth beats Veru on 7 of the 13 factors compared between the two stocks.
About AdaptHealth
AdaptHealth Corp., together with its subsidiaries, sells home medical equipment (HME), medical supplies, and home and related services in the United States. The company provides sleep therapy equipment, supplies, and related services, such as CPAP and bi-PAP services to individuals suffering from obstructive sleep apnea; medical devices and supplies, including continuous glucose monitors and insulin pumps for the treatment of diabetes; HME to patients discharged from acute care and other facilities; oxygen and related chronic therapy services in the home; and other HME devices and supplies on behalf of chronically ill patients with wound care, urological, incontinence, ostomy, and nutritional supply needs. It also offers wheelchairs, hospital beds, oxygen concentrators, CPAP masks and related supplies, wound care supplies, diabetes management supplies, wheelchair cushion accessories, orthopedic bracing, breast pumps and supplies, walkers, commodes and canes, and nutritional and incontinence supplies. The company services beneficiaries of Medicare, Medicaid, and commercial insurance payors. The company is headquartered in Plymouth Meeting, Pennsylvania.
About Veru
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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