PPD (NASDAQ:PPD) and Inotiv (NASDAQ:NOTV) Critical Survey

Inotiv (NASDAQ:NOTV) and PPD (NASDAQ:PPD) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, profitability, valuation and earnings.

Insider and Institutional Ownership

20.2% of Inotiv shares are held by institutional investors. Comparatively, 86.9% of PPD shares are held by institutional investors. 11.5% of Inotiv shares are held by insiders. Comparatively, 1.9% of PPD shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Inotiv and PPD, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Inotiv 0 0 0 0 N/A
PPD 0 12 3 0 2.20

PPD has a consensus target price of $43.36, suggesting a potential downside of 6.34%. Given PPD’s higher probable upside, analysts plainly believe PPD is more favorable than Inotiv.

Volatility and Risk

Inotiv has a beta of 2.12, indicating that its stock price is 112% more volatile than the S&P 500. Comparatively, PPD has a beta of 2.22, indicating that its stock price is 122% more volatile than the S&P 500.

Earnings & Valuation

This table compares Inotiv and PPD’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Inotiv $60.47 million 7.70 -$4.68 million ($0.35) -84.06
PPD $4.68 billion 3.47 $153.69 million $1.13 40.97

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

Profitability

This table compares Inotiv and PPD’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Inotiv -5.52% -47.67% -5.90%
PPD 2.93% -29.55% 4.07%

Summary

PPD beats Inotiv on 11 of the 13 factors compared between the two stocks.

About Inotiv

Inotiv, Inc. provides drug discovery and development services to the pharmaceutical, chemical, and medical device industries; and sells analytical instruments to the pharmaceutical development and contract research industries. It operates through two segments, Contract Research Services and Research Products. The Contract Research Services segment offers screening and pharmacological testing, nonclinical safety testing, formulation development, regulatory compliance, and quality control testing services. This segment provides analytical method development and validation; drug metabolism, bioanalysis, and pharmacokinetics testing to identify and measure drug and metabolite concentrations in complex biological matrices; in vivo sampling services for the continuous monitoring of chemical changes in life; stability testing to ensure the integrity of various solutions used in nonclinical and clinical studies, and post-study analyses; non-clinical toxicology and pathology services; and climate-controlled archiving services for its customers' data and samples. The Research Products segment designs, develops, manufactures, and markets in vivo sampling systems and accessories, including disposables, training, and systems qualification; physiology monitoring tools; liquid chromatography and electrochemistry instruments platforms; analytical products comprising liquid chromatographic and electrochemical instruments with associated accessories; and in vivo sampling products consisting of Culex family of automated in vivo sampling and dosing instruments. The company operates in the United States, rest of North America, the Pacific Rim, Europe, and internationally. It has an agreement with BioVaxys to conduct preclinical toxicity studies for its Covid-T Immunodiagnostic program. The company was formerly known as Bioanalytical Systems, Inc. and changed its name to Inotiv, Inc. in March 2021. Inotiv, Inc. was founded in 1974 and is headquartered in West Lafayette, Indiana.

About PPD

PPD, Inc., together with its subsidiaries, provides drug development services to the biopharmaceutical industry worldwide. The company operates through two segments, Clinical Development Services and Laboratory Services. It offers clinical development services, including product development and consulting, early development, Phases II-IV clinical trial management, accelerated enrollment, peri-and post-approval, and medical communications services. The company also provides laboratory services comprising bioanalytical, biomarker, vaccine science, good manufacturing practice, and central laboratory services. It serves pharmaceutical, biotechnology, medical device, and government organizations, as well as other industry participants. The company has a collaboration with Science 37 to design, build, test, implement, and execute digital trials using Science 37's DCT SaaS-based technology platform. PPD, Inc. was founded in 1985 and is headquartered in Wilmington, North Carolina.

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