Head-To-Head Contrast: Perrigo (NYSE:PRGO) and Graybug Vision (NASDAQ:GRAY)

Perrigo (NYSE:PRGO) and Graybug Vision (NASDAQ:GRAY) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.

Volatility & Risk

Perrigo has a beta of 0.51, meaning that its stock price is 49% less volatile than the S&P 500. Comparatively, Graybug Vision has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500.

Institutional and Insider Ownership

95.9% of Perrigo shares are held by institutional investors. Comparatively, 49.9% of Graybug Vision shares are held by institutional investors. 0.7% of Perrigo shares are held by company insiders. Comparatively, 7.9% of Graybug Vision shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Perrigo and Graybug Vision’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Perrigo	-2.81%	6.79%	2.99%
Graybug Vision	N/A	-77.61%	-71.34%

Valuation and Earnings

This table compares Perrigo and Graybug Vision’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Perrigo	$4.66 billion	0.82	-$12.70 million	($0.07)	-402.00
Graybug Vision	N/A	N/A	-$35.60 million	($24.23)	-0.17

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

Analyst Ratings

This is a breakdown of current ratings and price targets for Perrigo and Graybug Vision, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Perrigo	0	0	3	0	3.00
Graybug Vision	0	0	0	0	N/A

Perrigo presently has a consensus target price of $39.33, indicating a potential upside of 39.78%. Given Perrigo’s higher probable upside, analysts plainly believe Perrigo is more favorable than Graybug Vision.

Summary

Perrigo beats Graybug Vision on 8 of the 12 factors compared between the two stocks.

About Perrigo

Perrigo Company plc provides over-the-counter health and wellness solutions to enhance individual well-being in the United States, Europe, and internationally. It operates through Consumer Self-Care Americas and Consumer Self-Care International segments. The company develops, manufactures, markets, and distributes self-care consumer products, such as upper respiratory products, including cough suppressants, expectorants, and sinus and allergy relief; nutrition products consisting of infant formulas and nutritional beverages; digestive health products, including antacids, anti-diarrheal, and anti-heartburn; pain and sleep-aids products comprising pain relievers and fever reducers; and oral care products, which include toothbrushes, toothbrush replacement heads, floss, flossers, whitening products, and toothbrush covers. It also offers healthy lifestyle products, such as smoking cessation, well-being, and weight management products; skin care products consisting of dermatological care, scar management, lice treatment, and other products for various skin conditions; women's health products comprising feminine hygiene and contraceptives; vitamins, minerals, and supplements; rare diseases business; and other miscellaneous self-care products. The company sells its products under the Compeed, Dr. Fresh, Firefly, Good Sense, Good Start, Mederma, Nasonex, Plackers, Prevacid24HR, REACH, Rembrandt, Steripod, Opill, Solpadeine, Coldrex, Physiomer, NiQuitin, ACO, ellaOne, Compeed Stops, XLS, Arterin, Davitamon, Apiserum, Abtei, and Nicorette brands. It also offers contract manufacturing services. The company sells its products through retail drug, supermarket, and mass merchandise chains; e-commerce stores; wholesalers; pharmacies; drug and grocery retailers; and para-pharmacies. The company was formerly known as Perrigo Company and changed its name to Perrigo Company plc in December 2013. Perrigo Company plc was founded in 1887 and is headquartered in Dublin, Ireland.

About Graybug Vision

Graybug Vision, Inc., a clinical-stage biopharmaceutical company, focuses on the development of medicines for the treatment of diseases of the retina and optic nerve. The company's lead product candidate is GB-102, an intravitreal injection of a microparticle depot formulation of sunitinib that is in Phase I/IIa and IIb clinical trials for the treatment of wet age-related macular degeneration, as well as in Phase IIa clinical trial to treat diabetic macular edema. It also develops GB-102, for the treatment of diabetic retinopathy; and GB-401, an intravitreally injected implant formulation of a beta-adrenergic receptor inhibitor to treat primary open-angle glaucoma. The company was formerly known as Graybug LLC and changed its name to Graybug Vision, Inc. in 2016. Graybug Vision, Inc. was incorporated in 2011 and is based in Redwood City, California.