Critical Comparison: Elite Pharmaceuticals (OTCMKTS:ELTP) versus Rafael (NYSE:RFL)

Elite Pharmaceuticals (OTCMKTS:ELTP) and Rafael (NYSE:RFL) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, profitability, risk, analyst recommendations, valuation, earnings and institutional ownership.

Profitability

This table compares Elite Pharmaceuticals and Rafael’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Elite Pharmaceuticals	30.98%	47.93%	25.81%
Rafael	-2,846.60%	-37.27%	-31.02%

Analyst Ratings

This is a breakdown of current ratings for Elite Pharmaceuticals and Rafael, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Elite Pharmaceuticals	0	0	0	0	0.00
Rafael	1	0	0	0	1.00

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Elite Pharmaceuticals	$84.04 million	4.87	-$4.32 million	$0.03	12.67
Rafael	$920,000.00	69.25	-$30.52 million	($0.79)	-1.55

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

Institutional and Insider Ownership

0.0% of Elite Pharmaceuticals shares are held by institutional investors. Comparatively, 11.3% of Rafael shares are held by institutional investors. 14.4% of Elite Pharmaceuticals shares are held by company insiders. Comparatively, 32.9% of Rafael shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

Elite Pharmaceuticals has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500. Comparatively, Rafael has a beta of 0.51, meaning that its share price is 49% less volatile than the S&P 500.

Summary

Elite Pharmaceuticals beats Rafael on 7 of the 12 factors compared between the two stocks.

About Elite Pharmaceuticals

Elite Pharmaceuticals, Inc., a specialty pharmaceutical company, engages in the development, manufacture, and sale of oral, controlled-release products, and generic pharmaceuticals. The company operates in two segments, Abbreviated New Drug Applications for Generic Pharmaceuticals and New Drug Applications for Branded Pharmaceuticals. It owns, licenses, manufactures, and sells various generic and oral dose pharmaceuticals products, such as Phentermine HCl 37.5mg tablets, and 15mg and 30mg capsules for the treatment of bariatrics under Adipex-P brand; Phendimetrazine Tartrate 35mg tablets for bariatrics under the Bontril brand; Naltrexone HCl 50mg tablets for the treatment of pains under the Revia brand; and Isradipine 2.5mg and 5mg capsules for cardiovascular diseases. The company also provides Trimipramine Maleate Immediate Release antidepressant capsules under the Surmontil brand; Dextroamphetamine Saccharate, Amphetamine Aspartate, Dextroamphetamine Sulfate, and Amphetamine Sulfate Immediate Release tablets under the Adderall brand, as well as Dextroamphetamine Saccharate, Amphetamine Aspartate, Dextroamphetamine Sulfate, Amphetamine Sulfate Extended Release capsules under the Adderall XR brand for central nervous system diseases; Dantrolene Sodium capsules for muscle relaxant under the Dantrium brand; SequestOX, an immediate release Oxycodone with Naltrexone; Loxapine Succinate capsules for treating antipsychotic under the Loxapine brand; Acetaminophen and Codeine Phosphate for the management of mild to moderate pain; and antibiotic products. In addition, it manufactures controlled-release products on a contract basis for third parties in the areas of pain, allergy, bariatric, attention deficit, and infection. Further, the company is developing a range of abuse deterrent opioid products. Elite Pharmaceuticals, Inc. was incorporated in 1997 and is headquartered in Northvale, New Jersey.

About Rafael

Rafael Holdings, Inc. primarily engages in holding interests in clinical and early-stage pharmaceutical companies, and commercial real estate assets in the United States and Israel. It operates in two segments, Healthcare and Real Estate. The company engages in the development and commercialization of therapies that exploit the metabolic differences between normal cells and cancer cells. Its lead drug candidate is CPI-613 (devimistat), currently under Phase III clinical study for the treatment of metastatic pancreatic cancer and acute myeloid leukemia. The company is also involved in developing Promitil, a molecule designed for the targeted delivery of mitomycin-C in a proprietary prodrug form, completed Phase 1B clinical studies; Folate-targeted Promitil (Promi-Fol) which is aimed at local treatment (intravesical) of superficial bladder cancer; and Promi-Dox, a highly potent dual drug liposome with MLP and doxorubicin targeting a potential basket of tumors. In addition, it engages in the development of surgical and procedural devices, including orthopedic arthroscopy instrumentation. Rafael Holdings, Inc. was incorporated in 2017 and is headquartered in Newark, New Jersey.