Critical Survey: Wellness Center USA (OTCMKTS:WCUI) & Eagle Pharmaceuticals (OTCMKTS:EGRX)

Wellness Center USA (OTCMKTS:WCUI) and Eagle Pharmaceuticals (NASDAQ:EGRX) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, earnings, dividends, profitability and risk.

Profitability

This table compares Wellness Center USA and Eagle Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Wellness Center USA -2,225.88% N/A -4,699.78%
Eagle Pharmaceuticals 19.79% 24.10% 16.46%

Risk & Volatility

Wellness Center USA has a beta of 2.61, suggesting that its share price is 161% more volatile than the S&P 500. Comparatively, Eagle Pharmaceuticals has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500.

Valuation and Earnings

This table compares Wellness Center USA and Eagle Pharmaceuticals’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Wellness Center USA $210,000.00 23.01 -$3.40 million N/A N/A
Eagle Pharmaceuticals $213.31 million 3.64 $31.90 million $2.09 27.19

Eagle Pharmaceuticals has higher revenue and earnings than Wellness Center USA.

Institutional & Insider Ownership

97.5% of Eagle Pharmaceuticals shares are held by institutional investors. 14.1% of Wellness Center USA shares are held by insiders. Comparatively, 31.7% of Eagle Pharmaceuticals shares are held 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 Ratings

This is a breakdown of current recommendations and price targets for Wellness Center USA and Eagle Pharmaceuticals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wellness Center USA 0 0 0 0 N/A
Eagle Pharmaceuticals 0 3 1 0 2.25

Eagle Pharmaceuticals has a consensus target price of $57.00, suggesting a potential upside of 0.30%. Given Eagle Pharmaceuticals’ higher possible upside, analysts plainly believe Eagle Pharmaceuticals is more favorable than Wellness Center USA.

Summary

Eagle Pharmaceuticals beats Wellness Center USA on 9 of the 11 factors compared between the two stocks.

Wellness Center USA Company Profile

Wellness Center USA, Inc. engages in the healthcare and medical businesses in the United States and internationally. It operates through two segments, Medical Devices; and Authentication and Encryption Products and Services. The company is primarily involved in the marketing and distribution of online sports and nutrition supplements. It also designs, develops, manufactures, markets, and distributes targeted ultraviolet phototherapy devices, including Psoria-Light that is used in targeted PUVA photochemistry and UVB phototherapy for the treatment of skin conditions, such as psoriasis, vitiligo, atopic dermatitis, seborrheic dermatitis, and leukoderma. In addition, the company offers tradenames and marks, and related encryption and authentication solutions, which provide product security technologies within the security and supply chain management vertical sectors; and offers data intelligence services comprising proprietary, unprecedented, and actionable technology for industries, companies, and agencies. Wellness Center USA, Inc. was founded in 2010 and is based in Hoffman Estates, Illinois.

Eagle Pharmaceuticals Company Profile

Eagle Pharmaceuticals, Inc., a specialty pharmaceutical company, focuses on developing and commercializing injectable products primarily in the critical care and oncology areas in the United States. The company offers Argatroban, an anti-coagulant thrombin inhibitor for heparin-induced thrombocytopenia; Ryanodex for malignant hyperthermia; Bendeka for chronic lymphocytic leukemia (CLL) and indolent B-cell non-Hodgkin's lymphoma (NHL); and Belrapzo, a chemotherapeutic agent for CLL and Indolent NHL. Its product candidates also includes EP-4104, a dantrolene sodium for exertional heat stroke; EP-5101 (PEMFEXY) for lung cancer and mesothelioma; EGL-5385-C-1701 (fulvestrant) for breast cancer; and Vasopressin injection, which is indicated to enhance blood pressure in adults with vasodilatory shock. Eagle Pharmaceuticals, Inc. was founded in 2007 and is headquartered in Woodcliff Lake, New Jersey.

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