Critical Comparison: Elite Pharmaceuticals (OTCMKTS:ELTP) versus OptiNose (NASDAQ:OPTN)

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

Profitability

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

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

Insider and Institutional Ownership

85.6% of OptiNose shares are owned by institutional investors. Comparatively, 0.0% of Elite Pharmaceuticals shares are owned by institutional investors. 2.7% of OptiNose shares are owned by insiders. Comparatively, 14.4% of Elite Pharmaceuticals shares are owned 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.

Earnings & Valuation

This table compares OptiNose and Elite Pharmaceuticals’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OptiNose	$70.99 million	1.66	-$35.48 million	($0.27)	-3.85
Elite Pharmaceuticals	$34.15 million	5.85	$3.56 million	$0.01	18.72

Elite Pharmaceuticals has lower revenue, but higher earnings 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.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for OptiNose and Elite Pharmaceuticals, as provided by MarketBeat.com.

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

OptiNose currently has a consensus price target of $3.67, suggesting a potential upside of 252.56%. Given OptiNose’s higher possible upside, equities research analysts plainly believe OptiNose is more favorable than Elite Pharmaceuticals.

Risk & Volatility

OptiNose has a beta of -0.12, meaning that its stock price is 112% less volatile than the S&P 500. Comparatively, Elite Pharmaceuticals has a beta of 0.11, meaning that its stock price is 89% less volatile than the S&P 500.

Summary

Elite Pharmaceuticals beats OptiNose on 9 of the 13 factors compared between the two stocks.

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.

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.