Head to Head Analysis: Elanco Animal Health (NYSE:ELAN) and Scienture (NASDAQ:SCNX)

Elanco Animal Health (NYSE:ELAN) and Scienture (NASDAQ:SCNX) are both healthcare companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, dividends, profitability, institutional ownership and valuation.

Insider & Institutional Ownership

97.5% of Elanco Animal Health shares are owned by institutional investors. Comparatively, 5.7% of Scienture shares are owned by institutional investors. 1.1% of Elanco Animal Health shares are owned by company insiders. Comparatively, 19.5% of Scienture shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Elanco Animal Health and Scienture”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Elanco Animal Health	$4.71 billion	2.36	-$232.00 million	($0.41)	-54.39
Scienture	$430,000.00	15.75	-$41.51 million	($2.10)	-1.97

Scienture has lower revenue, but higher earnings than Elanco Animal Health. Elanco Animal Health is trading at a lower price-to-earnings ratio than Scienture, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Elanco Animal Health has a beta of 1.7, indicating that its stock price is 70% more volatile than the S&P 500. Comparatively, Scienture has a beta of 3.34, indicating that its stock price is 234% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Elanco Animal Health and Scienture, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Elanco Animal Health	1	2	8	1	2.75
Scienture	1	1	1	0	2.00

Elanco Animal Health currently has a consensus target price of $29.70, indicating a potential upside of 33.19%. Scienture has a consensus target price of $37.50, indicating a potential upside of 807.99%. Given Scienture’s higher possible upside, analysts plainly believe Scienture is more favorable than Elanco Animal Health.

Profitability

This table compares Elanco Animal Health and Scienture’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Elanco Animal Health	-3.96%	8.13%	3.99%
Scienture	N/A	-53.51%	-42.47%

Summary

Elanco Animal Health beats Scienture on 8 of the 15 factors compared between the two stocks.

About Elanco Animal Health

Elanco Animal Health Incorporated, an animal health company, innovates, develops, manufactures, and markets products for pets and farm animals. It offers pet health disease prevention products, such as parasiticide and vaccine products that protect pets from worms, fleas, and ticks under the Seresto, Advantage, Advantix, and Advocate brands; pet health therapeutics for pain, osteoarthritis, ear infections, cardiovascular, and dermatology indications in canines and felines under the Galliprant and Claro brands; vaccines, antibiotics, parasiticides, and other products for use in poultry and aquaculture production, as well as nutritional health products, including enzymes, probiotics, and prebiotics; and a range of vaccines, antibiotics, implants, parasiticides, and other products used in ruminant and swine production under the Rumensin and Baytril brands. The company sells its products to third-party distributors; veterinarians; and farm animal producers, including beef and dairy farmers, as well as pork, poultry, and aquaculture operations. Elanco Animal Health Incorporated was founded in 1954 and is headquartered in Greenfield, Indiana.

About Scienture

Scienture Holdings, Inc. engages in the provision of health services and pharmaceutical products. It focuses on addressing underserved patients and indications through novel product concepts and innovation. The company was founded on July 15, 2005 and is headquartered in Lutz, FL.