Head to Head Review: Elite Pharmaceuticals (OTCMKTS:ELTP) & OptiNose (NASDAQ:OPTN)

Elite Pharmaceuticals (OTCMKTS:ELTP) and OptiNose (NASDAQ:OPTN) are both small-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, earnings, risk, valuation and institutional ownership.

Valuation & Earnings

This table compares Elite Pharmaceuticals and OptiNose’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Elite Pharmaceuticals	$34.15 million	6.26	$3.56 million	$0.01	20.02
OptiNose	$70.99 million	1.72	-$35.48 million	($0.27)	-4.00

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

Insider & Institutional Ownership

0.0% of Elite Pharmaceuticals shares are held by institutional investors. Comparatively, 85.6% of OptiNose shares are held by institutional investors. 14.4% of Elite Pharmaceuticals shares are held by company insiders. Comparatively, 2.7% of OptiNose shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Elite Pharmaceuticals	32.87%	41.32%	26.72%
OptiNose	-41.55%	N/A	-30.84%

Risk & Volatility

Elite Pharmaceuticals has a beta of -0.08, suggesting that its share price is 108% less volatile than the S&P 500. Comparatively, OptiNose has a beta of -0.13, suggesting that its share price is 113% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Elite Pharmaceuticals and OptiNose, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Elite Pharmaceuticals	0	0	0	0	N/A
OptiNose	0	0	3	0	3.00

OptiNose has a consensus price target of $3.67, suggesting a potential upside of 239.51%. Given OptiNose’s higher probable upside, analysts plainly believe OptiNose is more favorable than Elite Pharmaceuticals.

Summary

Elite Pharmaceuticals beats OptiNose on 9 of the 13 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 OptiNose

OptiNose, Inc., a specialty pharmaceutical company, focuses on the development and commercialization of products for patients treated by ear, nose, throat, and allergy specialists in the United States. The company offers XHANCE, a therapeutic product utilizing its proprietary exhalation delivery system (EDS) that delivers a topically acting corticosteroid for the treatment of chronic rhinosinusitis with nasal polyps, as well as is in Phase IIIb clinical trial for treatment of chronic sinusitis; and Onzetra Xsail, a powder EDS device. It has a license agreement with Currax Pharmaceuticals LLC for the commercialization of Onzetra Xsail. The company was founded in 2000 and is headquartered in Yardley, Pennsylvania.