Antares Pharma (NASDAQ: ATRS) vs PetVivo (OTCMKTS: PETV) Stock Comparison

Antares Pharma (NASDAQ: ATRS - Get Rating) and Pet Vivo (OTCMKTS: PETV - Get Rating) are both small-cap medical organizations. In this article, we compare the two companies based on risk, institutional ownership, analyst recommendations, earnings, profitability, valuation, and returns.

Valuation and Earnings

Here is a comparison of Antares Pharma and Pet Vivo's gross revenue, profit per share (EPS), and valuation:

• Antares Pharma: $183.98 million gross revenue, price-to-sales ratio of 3.61, net income of $46.29 million, EPS of $0.27, P/E ratio of 14.44.
• Pet Vivo: $10,000 gross revenue, price-to-sales ratio of 1,612.88, net loss of $3.52 million, EPS of -$0.41, P/E ratio of -4.02.

Antares Pharma has higher revenue and profit than Pet Vivo. However, Pet Vivo has a lower price-to-earnings ratio, indicating it might be the more affordable stock currently.

Analyst Recommendations

Analysts have rated both stocks:

• Antares Pharma: 2 buy ratings, no sell or hold ratings, with a rating score of 3.00.
• Pet Vivo: 1 buy rating, no sell or hold ratings, with a rating score of 3.00.

Antares Pharma has a target price of $6.00, indicating a potential upside of 53.85%. Pet Vivo has a target price of $7.00, indicating a potential upside of 324.24%. This suggests analysts see greater upside in Pet Vivo.

Profitability

Comparison of profitability metrics:

• Antares Pharma: 25.16% net margins, 12.33% return on equity, 7.83% return on assets.
• Pet Vivo: -5,480.00% net margins, -100.42% return on equity, -70.55% return on assets.

Volatility and Risk

Both companies exhibit volatility in their stock prices:

• Antares Pharma: Beta of 1.48, indicating the stock price is 48% more volatile than the S&P 500.
• Pet Vivo: Beta of 1.9, indicating the stock price is 90% more volatile than the S&P 500.

Insider and Institutional Ownership

Ownership statistics for both companies:

• Antares Pharma: 48.6% institutional ownership, 5.9% insider ownership.
• Pet Vivo: 12.7% institutional ownership, 35.3% insider ownership.

Higher institutional ownership generally signals confidence from large investors. Antares Pharma has significantly more institutional ownership, while Pet Vivo has greater insider ownership.

Conclusion

Antares Pharma outperforms Pet Vivo on 9 out of the 13 comparison factors. However, with higher potential upside and strong insider ownership, Pet Vivo could be an intriguing speculative investment.

Company Profiles

Antares Pharma (Get Rating)

Antares Pharma, Inc. is a combination drug-device company involved in developing and commercializing self-administered parenteral pharmaceutical products. Key products include XYOSTED injection, OTREXUP injection for subcutaneous use, and Sumatriptan injection. The company was founded in February 1979 and is based in Ewing, NJ.

Pet Vivo (Get Rating)

Pet Vivo Holdings, Inc. is a veterinary biotech and biomedical device company. It specializes in adapting human biotech and medical technology into products for the veterinary market. The company’s flagship product, Kush, is an intra-articular injection aimed at treating osteoarthritis in companion animals. Pet Vivo was founded in 2009 and is headquartered in Minneapolis, MN.

Meeting the Growing Demand in Pharmaceutical Manufacturing

Patterns in the present population give pharmaceutical companies a dual challenge. On one side, the aging population is increasing rapidly. A new UN study forecasts that the 65+ age group will rise from 9% to 16% worldwide by 2050, and the 80+ group is projected to triple. Yet, about 30% of the global population lacks access to essential medicines. As people live longer with better access to healthcare, the demand for pharmaceuticals intensifies.

However, increasing production has its hurdles. The pharmaceutical industry faces disruptions, with facility or product quality failures being the leading cause of drug shortages, accounting for 66% of shortages. Manufacturers must adopt innovative technologies to meet this demand and improve the drug lifecycle.

Key Risk Factors for Pharmaceutical Manufacturing

1. Managing Environmental Conditions

Optimal environmental conditions are crucial in production and storage. Poorly managed conditions can lead to quality control failures, regulatory violations, and energy inefficiencies. In fact, 60% of electrical energy is consumed by environmental control, with about 8% wasted annually.

Solution: A dedicated system to monitor and control environmental conditions, continuous energy monitoring, and adherence to regulatory standards can enhance quality and reduce energy usage.

2. Physical Infrastructure Failure

The integrity of utilities and plant equipment is vital. Power disruptions, even minor ones, can cause sterility loss, equipment failure, and product loss. Ensuring a stable power supply is essential for maintaining data integrity and avoiding costly IT failures.

Solution: On/off-site renewable energy sources can help ease the strain on public grids. Advanced technologies like AI, simulations, and IIoT sensors can prevent equipment failures by enabling real-time monitoring and analysis.

3. Non-compliance

Regulatory requirements ensure drug safety. However, data issues account for 79% of FDA warning letters in the last five years. Non-compliance due to missing or incorrect data can lead to production delays, fines, or license suspensions. Cybersecurity threats also play a role in non-compliance, with two-thirds of pharmaceutical companies experiencing data breaches.

Solution: Digitizing workflows and validation processes can help ensure regulatory compliance, improve data integrity, and reduce human error. Implementing cybersecurity measures is also essential to protect data.

4. Being Responsive to Operational Issues

Agility is key for pharmaceutical manufacturers to adapt to incidents and changing needs. Complex systems and a lack of standardized procedures can hinder responsiveness and increase operational costs.

Solution: Implementing standard operating procedures (SOPs) across facilities can help streamline responses to incidents. Digital twins, AI, and cloud technology enable real-time data analysis to improve decision-making and efficiency.

5. Sustainability Challenges

Energy management and sustainability are critical business drivers. Efficient energy, water, and waste management reduce costs and improve brand reputation, contributing to financial gains and investor confidence.

Solution: Centralized platforms for monitoring energy consumption and sustainability KPIs allow companies to track progress towards carbon-neutral goals. Transitioning to renewable energy sources also supports sustainability efforts.

The Power of Digitization

Pharmaceutical companies face immense pressure to meet product demand while achieving operational efficiencies and sustainability goals. Cutting-edge facilities must embrace innovative technologies like AI and data digitization to improve decision-making, ensure regulatory compliance, and drive sustainability in pharmaceutical manufacturing.