Head-To-Head Analysis: Inotiv (NASDAQ:NOTV) and Amneal Pharmaceuticals (NASDAQ:AMRX)

Amneal Pharmaceuticals (NASDAQ:AMRX) and Inotiv (NASDAQ:NOTV) are both medical companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, valuation, analyst recommendations, dividends and profitability.

Profitability

This table compares Amneal Pharmaceuticals and Inotiv’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Amneal Pharmaceuticals	2.39%	-228.24%	6.91%
Inotiv	-13.50%	-28.95%	-5.22%

Risk & Volatility

Amneal Pharmaceuticals has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500. Comparatively, Inotiv has a beta of 4.22, suggesting that its stock price is 322% more volatile than the S&P 500.

Institutional & Insider Ownership

31.8% of Amneal Pharmaceuticals shares are owned by institutional investors. Comparatively, 18.2% of Inotiv shares are owned by institutional investors. 26.6% of Amneal Pharmaceuticals shares are owned by insiders. Comparatively, 7.8% of Inotiv shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for Amneal Pharmaceuticals and Inotiv, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amneal Pharmaceuticals	0	1	5	1	3.00
Inotiv	1	0	1	0	2.00

Amneal Pharmaceuticals currently has a consensus target price of $14.20, suggesting a potential upside of 20.03%. Inotiv has a consensus target price of $1.50, suggesting a potential upside of 340.79%. Given Inotiv’s higher probable upside, analysts clearly believe Inotiv is more favorable than Amneal Pharmaceuticals.

Valuation & Earnings

This table compares Amneal Pharmaceuticals and Inotiv”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amneal Pharmaceuticals	$3.02 billion	1.23	$72.06 million	$0.23	51.43
Inotiv	$513.02 million	0.02	-$68.62 million	($2.03)	-0.17

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

Summary

Amneal Pharmaceuticals beats Inotiv on 12 of the 15 factors compared between the two stocks.

About Amneal Pharmaceuticals

Amneal Pharmaceuticals, Inc., together with its subsidiaries, develops, manufactures, markets, and distributes generics, injectables, biosimilars, and specialty branded pharmaceutical products worldwide. The company operates through three segments: Generics, Specialty, and AvKARE. The Generics segment offers immediate and extended release oral solid, powder, liquid, sterile injectable, nasal spray, inhalation and respiratory, biosimilar, ophthalmic, film, transdermal patch, and topical products. The Specialty segment develops, promotes, sells, and distributes pharmaceutical products with focus on central nervous system disorders, including Parkinson's disease, and endocrine disorders. This segment also provides Rytary, an oral capsule formulation of carbidopa-levodopa to treat Parkinson's disease, post-encephalitic parkinsonism, and parkinsonism; Unithroid for the treatment of hypothyroidism; and IPX203, a pipeline product for Parkinson's disease. The AvKARE segment offers pharmaceuticals, medical and surgical products, and services primarily to governmental agencies, the Department of Defense, and the Department of Veterans Affairs. This segment also distributes bottle and unit dose pharmaceuticals under the AvKARE and AvPAK names; and packages and distributes pharmaceuticals and vitamins to its retail and institutional customers. It sells its products through wholesalers, distributors, hospitals, chain pharmacies, and individual pharmacies. The company was formerly known as Atlas Holdings, Inc. and changed its name to Amneal Pharmaceuticals, Inc. in 2018. Amneal Pharmaceuticals, Inc. was founded in 2002 and is headquartered in Bridgewater, New Jersey.

About Inotiv

Inotiv, Inc. provides nonclinical and analytical drug discovery and development services to the pharmaceutical and medical device industries. It operates through two segment: Discovery and Safety Assessment (DSA), and Research Models and Services (RMS). The DMS segment manufactured scientific instruments for life sciences research and the related software for use by pharmaceutical companies, universities, government research centers, and medical research institutions under the Company's BASi product line. The RMS segment engages in commercial production and sales of research models, diets, bedding, and bioproducts. The company offers research and discovery services, including computational toxicology, disease pharmacology, DMPK, safety pharmacology, discovery bioanalysis, exploratory, surgical models and medical device, and cell and molecular biology; non-clinical safety assessment includes general and genetic toxicology, regulated bioanalysis, carcinogenicity studies, and development and reproductive toxicology; pathology services, such as histology, digital, clinical, and medical device pathology; bioanalysis includes nonregulated discovery bioanalysis, biotherapeutics, and regulated preclinical and clinical bioanalysis; proteomics; and consulting services, as well as model and research services. The company operates in the United States, the Netherlands, and internationally. The company was formerly known as Bioanalytical Systems, Inc. and changed its name to Inotiv, Inc. in March 2021. Inotiv, Inc. was incorporated in 1974 and is headquartered in West Lafayette, Indiana.