Critical Review: Endo International (NASDAQ:ENDP) and Oncternal Therapeutics (NASDAQ:ONCT)

Endo International (NASDAQ:ENDP) and Oncternal Therapeutics (NASDAQ:ONCT) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, institutional ownership, risk, profitability, valuation and analyst recommendations.

Analyst Ratings

This is a breakdown of current recommendations for Endo International and Oncternal Therapeutics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Endo International 2 1 4 0 2.29
Oncternal Therapeutics 0 0 1 0 3.00

Endo International currently has a consensus price target of $5.33, suggesting a potential upside of 69.85%. Oncternal Therapeutics has a consensus price target of $8.00, suggesting a potential upside of 280.95%. Given Oncternal Therapeutics’ stronger consensus rating and higher possible upside, analysts clearly believe Oncternal Therapeutics is more favorable than Endo International.

Valuation and Earnings

This table compares Endo International and Oncternal Therapeutics’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Endo International $2.91 billion 0.25 -$422.64 million $2.38 1.32
Oncternal Therapeutics $2.42 million 17.28 -$34.19 million ($1.56) -1.35

Oncternal Therapeutics has lower revenue, but higher earnings than Endo International. Oncternal Therapeutics is trading at a lower price-to-earnings ratio than Endo International, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

80.2% of Endo International shares are held by institutional investors. Comparatively, 13.6% of Oncternal Therapeutics shares are held by institutional investors. 2.3% of Endo International shares are held by company insiders. Comparatively, 10.9% of Oncternal Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Endo International and Oncternal Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Endo International -5.25% -91.41% 7.23%
Oncternal Therapeutics -778.45% -147.33% -92.60%

Volatility and Risk

Endo International has a beta of 1.42, indicating that its stock price is 42% more volatile than the S&P 500. Comparatively, Oncternal Therapeutics has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500.

Summary

Endo International beats Oncternal Therapeutics on 8 of the 14 factors compared between the two stocks.

Endo International Company Profile

Endo International plc, a specialty pharmaceutical company, manufactures and sells generic and branded pharmaceuticals in the United States, Canada, and internationally. The company operates through three segments: U.S. Generic Pharmaceuticals, U.S. Branded Pharmaceuticals, and International Pharmaceuticals. The U.S. Generic Pharmaceuticals segment offers solid oral extended-release, solid oral immediate-release, abuse-deterrent products, liquids, semi-solids, patches, powders, ophthalmics, sprays, and sterile injectables, as well as products for the pain management, urology, central nervous system disorders, immunosuppression, oncology, women's health, and cardiovascular disease markets. The U.S. Branded Pharmaceuticals segment provides XIAFLEX for the treatment of Dupuytren's contracture and Peyronie's diseases; SUPPRELIN LA for central precocious puberty treatment; TESTOPEL, a long-acting implantable pellet for the treatment of central precocious puberty; NASCOBAL, a nasal spray to treat vitamin B12 deficiency; and AVEED for the treatment of hypogonadism. This segment also offers pain management products, such as PERCOCET, VOLTAREN Gel, and LIDODERM; TESTIM Gel for the treatment of endogenous testosterone; and FORTESTA Gel for hypogonadism treatment. The International Pharmaceuticals segment offers specialty pharmaceutical products in various therapeutic areas comprising attention deficit hyperactivity disorder, pain, women's health, and oncology. It sells its branded pharmaceuticals and generics directly to specialty physicians, retailers, clinics, government agencies, doctors, retail and specialty pharmacies, and specialty distributors, as well as through wholesale drug distributors. Endo International plc was founded in 1920 and is headquartered in Dublin, Ireland.

Oncternal Therapeutics Company Profile

Oncternal Therapeutics, Inc., a clinical-stage biotechnology company, develops various product candidates for the treatment of cancer. The company's product pipeline includes cirmtuzumab, a monoclonal antibody designed to inhibit the receptor tyrosine kinase-like orphan receptor 1 (ROR1) that is being evaluated in a Phase I/II clinical trial in combination with ibrutinib for the treatment of chronic lymphocytic leukemia and mantle cell lymphoma; and TK-216, a small-molecule compound that is designed to inhibit E26 transformation-specific oncogene-family oncoproteins, which is being evaluated in a Phase I clinical trial alone and in combination with vincristine to treat Ewing sarcoma, a rare pediatric cancer. It is also developing a chimeric antigen receptor-T product candidate that targets ROR1, which is currently in preclinical development for treating hematologic cancers and solid tumors. The company is headquartered in San Diego, California.

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