Advanced Accelerator Applications (AAAP) vs. Mallinckrodt PLC (MNK) Critical Survey

Advanced Accelerator Applications (NASDAQ: AAAP) and Mallinckrodt PLC (NYSE:MNK) are both mid-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, risk, earnings, institutional ownership, analyst recommendations and valuation.

Institutional and Insider Ownership

40.9% of Advanced Accelerator Applications shares are owned by institutional investors. Comparatively, 95.7% of Mallinckrodt PLC shares are owned by institutional investors. 0.8% of Mallinckrodt PLC shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Advanced Accelerator Applications and Mallinckrodt PLC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Advanced Accelerator Applications -29.01% -14.38% -9.65%
Mallinckrodt PLC 12.64% 15.28% 5.20%

Earnings & Valuation

This table compares Advanced Accelerator Applications and Mallinckrodt PLC’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Advanced Accelerator Applications $135.87 million 15.87 -$14.65 million ($0.68) -71.93
Mallinckrodt PLC $3.27 billion 1.11 $666.60 million $4.10 8.91

Mallinckrodt PLC has higher revenue and earnings than Advanced Accelerator Applications. Advanced Accelerator Applications is trading at a lower price-to-earnings ratio than Mallinckrodt PLC, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and recommmendations for Advanced Accelerator Applications and Mallinckrodt PLC, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Advanced Accelerator Applications 0 1 4 0 2.80
Mallinckrodt PLC 0 2 15 0 2.88

Advanced Accelerator Applications presently has a consensus price target of $54.00, suggesting a potential upside of 10.41%. Mallinckrodt PLC has a consensus price target of $74.32, suggesting a potential upside of 103.51%. Given Mallinckrodt PLC’s stronger consensus rating and higher possible upside, analysts plainly believe Mallinckrodt PLC is more favorable than Advanced Accelerator Applications.

Risk & Volatility

Advanced Accelerator Applications has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500. Comparatively, Mallinckrodt PLC has a beta of 1.52, meaning that its share price is 52% more volatile than the S&P 500.

Summary

Mallinckrodt PLC beats Advanced Accelerator Applications on 12 of the 13 factors compared between the two stocks.

About Advanced Accelerator Applications

Advanced Accelerator Applications S.A. is a radiopharmaceutical company. The Company develops, produces and commercializes molecular nuclear medicine (MNM), diagnostic and therapeutic products. MNM uses trace amounts of radioactive compounds to create functional images of organs and lesions and to treat diseases, such as cancer. The Company has a portfolio of nine diagnostic positron emission tomography (PET) and single-photon emission computed tomography (SPECT) products. PET and SPECT are imaging techniques in molecular nuclear diagnostics (MND) with applications in clinical oncology, cardiology, neurology and inflammatory/infectious diseases. Its commercial products include Gluscan/Gluscan 500/Barnascan, FluoroChol, MIBITEC/Adamibi, DOPAVIEW, Leukokit, Neurolite, SomaKit and NETSPOT. Additional MND product candidates include Annexin V-128, a SPECT product candidate for the imaging of apoptotic and necrotic lesions with potential applications in a range of indications.

About Mallinckrodt PLC

Mallinckrodt public limited company develops, manufactures, markets and distributes branded and generic specialty pharmaceutical products and therapies. The Company focuses on various therapeutic areas, such as autoimmune and rare disease specialty areas, including neurology, rheumatology, nephrology, ophthalmology and pulmonology; immunotherapy and neonatal critical care respiratory therapies; analgesics and hemostasis products, and central nervous system drugs. Its segments include Specialty Brands and Specialty Generics. The Specialty Brands segment produces and markets branded pharmaceutical products and therapies. The Specialty Generics segment produces and markets specialty generic pharmaceuticals and active pharmaceutical ingredient (API) consisting of biologics, medicinal opioids, synthetic controlled substances, acetaminophen and other active ingredients. Its product portfolio includes Acthar, Inomax, Ofirmev, Therakos immunotherapy, Hemostasis products and StrataGraft.

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