Analyzing Procaps Group (NASDAQ:PROC) & MannKind (NASDAQ:MNKD)

Procaps Group (NASDAQ:PROC) and MannKind (NASDAQ:MNKD) are both medical companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.

Insider & Institutional Ownership

49.6% of MannKind shares are owned by institutional investors. 19.9% of Procaps Group shares are owned by company insiders. Comparatively, 3.0% of MannKind shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Procaps Group and MannKind’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Procaps Group	N/A	N/A	N/A
MannKind	8.07%	-17.74%	8.68%

Risk and Volatility

Procaps Group has a beta of 0.17, suggesting that its share price is 83% less volatile than the S&P 500. Comparatively, MannKind has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500.

Valuation & Earnings

This table compares Procaps Group and MannKind”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Procaps Group	$409.92 million	N/A	$42.54 million	$0.52	4.02
MannKind	$198.96 million	9.16	-$11.94 million	$0.07	94.43

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for Procaps Group and MannKind, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Procaps Group	0	0	0	0	0.00
MannKind	0	0	6	1	3.14

MannKind has a consensus price target of $8.67, suggesting a potential upside of 31.11%. Given MannKind’s stronger consensus rating and higher probable upside, analysts clearly believe MannKind is more favorable than Procaps Group.

Summary

MannKind beats Procaps Group on 9 of the 14 factors compared between the two stocks.

About Procaps Group

Procaps Group S.A. develops, produces, and markets pharmaceutical solutions worldwide. The company formulates, manufactures, and markets branded prescription drugs in various therapeutic areas, including feminine care products, pain relief, skin care, digestive health, growth and development, cardiology, vision care, central nervous system, and respiratory. It also provides drugs for hospital use, such as antibiotic, blood clot, personal protective equipment, immunosuppressant, oncology, and analgesics products. In addition, the company offers over-the-counter (OTC) consumer healthcare products through a portfolio on approximately eight therapeutic areas, including gastrointestinal, skin care, cough and cold, analgesics, urological, vitamins, minerals, and supplements in the categories of antibiotics, anti-infective, anti-parasitic, cardiovascular, feminine care, cutaneous antimycotic, pain killers, gastro intestinal, hormonals, metabolic, endocrine, nervous system, ophthalmic, osteoarticular, respiratory, diet supplements, and vitamins and minerals. Further, it provides blood glucose meters, telemonitoring products, oral anti-diabetics products, cosmeceuticals, insulin delivery systems, and other diabetes solutions; and contract drug development and manufacturing services to third party pharmaceutical companies, specializing in soft gelatin capsule technologies. The company was founded in 1977 and is based in Luxembourg, Luxembourg.

About MannKind

MannKind Corporation, a biopharmaceutical company, focuses on the development and commercialization of inhaled therapeutic products for endocrine and orphan lung diseases in the United States. It offers Afrezza, an inhaled insulin used to improve glycemic control in adults with diabetes, and the V-Go wearable insulin delivery device, which provides continuous subcutaneous infusion of insulin in adults. The company's product pipeline also includes Tyvaso DPI (Treprostinil), an inhalation powder for the treatment of pulmonary arterial hypertension and pulmonary hypertension associated with interstitial lung disease; MNKD-101, a nebulized formulation of clofazimine, for the treatment of severe chronic and recurrent pulmonary infections, including nontuberculous mycobacterial lung disease; MNKD-201, a dry-powder formulation of nintedanib, for the treatment of idiopathic pulmonary fibrosis (IPF). In addition, it has collaboration and license agreement with United Therapeutics Corporation for development, regulatory, and commercial activities of Tyvaso DPI; co-promotion agreement with Vertice Pharma to promote Thyquidity; and collaboration agreement with Thirona to evaluate the therapeutic for the treatment of pulmonary fibrosis. Further, the company has supply and distribution agreement with Biomm S.A. for the commercialization of Afrezza in Brazil; and license and distribution agreement with Cipla Ltd. for the marketing and distribution of Afrezza in India. MannKind Corporation was incorporated in 1991 and is headquartered in Danbury, Connecticut.