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Cumberland Pharmaceuticals Inc versus Orexigen Therapeutics Inc Head to Head Compare


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This is a head to head compare of Cumberland Pharmaceuticals Inc (NASDAQ:CPIX) and Orexigen Therapeutics Inc (NASDAQ:OREX) . We will compare the two companies on revenue growth, earnings, revenue per employee, operating margins, free cash flow and valuation. The head to head compare assigns 100 points in total.



Before we dive into the analysis, we will look at the stock returns for each company over the last three months, six months and the last year. The stock returns do not impact the head to head compare scores which are focused on the fundamentals of each company, but ultimately stock returns are are still a critical piece to a full analysis and compare.


Stock Returns
Symbol 3-Months 6-Months One-Year Fundamentals
CPIX +0.7% +20.5% +26.4%
OREX -10.9% +1.4% -34.0%

These companies have the same star rating so the head-to-head compare will rely on a deep dive into specific metric comparisons. The CML Star Rating is an objective, quantifiable measure of a company's operating and financial condition. The rating is computed by measuring numerous elements of the company's current financial data and their associated changes over time.

Now, let's dive into the two companies to compare them.

➤ Income Statement
First we turn to the income statement and compare revenue, earnings and revenue per employee for both companies. We note that simple revenue comparisons do not impact the rating.

Both CPIX and OREX have negative earnings over the last year. But, the difference in the size of losses has limited impact on the head-to-head comparison.

Net Income


CPIX generates larger revenue per employee ($430,000) than OREX ($365,000), but not enough to affect the comparison rating.

Revenue per Employee
($ Millions)


➤ Margins
Next we create some derived metrics to compare the the amount of revenue earned per dollar of expense and the amount of free cash flow earned per dollar of revenue. Margins are one of the fairest ways to compare companies since they remove some of the bias of large versus small numbers.

Cumberland Pharmaceuticals Inc generates $1.02 in revenue for every $1 of expense, while Orexigen Therapeutics Inc generates an operating loss of $0.16 in revenue per $1 of expense.

Revenue per Dollar of Expense


Both CPIX and OREX generate a cash flow loss, although CPIX shows a remarkably better cash flow margin.

Free Cash Flow
per Dollar of Revenue


➤ Growth
Finally we compare the financial metrics related to growth: revenue growth rates and price to sales.

Both companies have shrinking revenue. Orexigen Therapeutics Inc revenue is shrinking massively faster than Cumberland Pharmaceuticals Inc.

Revenue Growth


For every $1 in revenue, the stock market prices in $2.83 in market cap for CPIX and $2.50 in market cap for OREX.

Price to Sales

Cumberland Pharmaceuticals Inc (NASDAQ:CPIX)
defeats
Orexigen Therapeutics Inc (NASDAQ:OREX) : 90 to 10