Eagle Pharmaceuticals (NASDAQ: EGRX) and Aimmune Therapeutics (NASDAQ:AIMT) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.
Earnings & Valuation
This table compares Eagle Pharmaceuticals and Aimmune Therapeutics’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Eagle Pharmaceuticals||$245.88 million||3.70||$83.99 million||$5.95||10.09|
|Aimmune Therapeutics||N/A||N/A||-$106.22 million||($2.25)||-10.30|
Eagle Pharmaceuticals has higher revenue and earnings than Aimmune Therapeutics. Aimmune Therapeutics is trading at a lower price-to-earnings ratio than Eagle Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Eagle Pharmaceuticals has a beta of 1.3, meaning that its stock price is 30% more volatile than the S&P 500. Comparatively, Aimmune Therapeutics has a beta of -1.1, meaning that its stock price is 210% less volatile than the S&P 500.
Institutional and Insider Ownership
72.9% of Aimmune Therapeutics shares are held by institutional investors. 19.5% of Eagle Pharmaceuticals shares are held by company insiders. Comparatively, 24.6% of Aimmune Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This table compares Eagle Pharmaceuticals and Aimmune Therapeutics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings for Eagle Pharmaceuticals and Aimmune Therapeutics, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Eagle Pharmaceuticals currently has a consensus target price of $72.50, suggesting a potential upside of 20.79%. Aimmune Therapeutics has a consensus target price of $36.67, suggesting a potential upside of 58.25%. Given Aimmune Therapeutics’ stronger consensus rating and higher possible upside, analysts clearly believe Aimmune Therapeutics is more favorable than Eagle Pharmaceuticals.
Eagle Pharmaceuticals beats Aimmune Therapeutics on 8 of the 12 factors compared between the two stocks.
About Eagle Pharmaceuticals
Eagle Pharmaceuticals, Inc. is a specialty pharmaceutical company. The Company focuses on developing and commercializing injectable products in the critical care and oncology areas. The Company’s product portfolio includes products, including Argatroban; Ryanodex; docetaxel injection, non-alcohol formulation; and Bendeka. Its advanced candidates include EP-3101 (bendamustine Resistance Temperature Detectors (RTD)) (EP-3101), EP-4104 (dantrolene sodium for exertional heat stroke (EHS)) (EP-4104), EGL-4104-C-1702 (dantrolene sodium for drug induced hyperthermia), EP-5101 (pemetrexed) (EP-5101) and EGL-5385-C-1701 (fulvestrant). Its product portfolio focuses on oncology, critical care and orphan diseases. Bendamustine is an alkylating agent approved for use in chronic lymphocytic leukemia (CLL), and indolent B-cell non-Hodgkin’s lymphoma (NHL), that has progressed during or within six months of treatment with rituximab or a rituximab-containing regimen.
About Aimmune Therapeutics
Aimmune Therapeutics, Inc. is a clinical-stage biopharmaceutical company developing a therapeutic approach, including the development of product candidates, for the treatment of peanut and other food allergies. The Company’s therapeutic approach, which it refers to as Characterized Oral Desensitization Immunotherapy (CODIT), is a system designed to desensitize patients to food allergens using characterized biologic products, defined treatment protocols and support services. The Company’s lead CODIT product candidate, AR101, is an investigational biologic for the treatment of patients with peanut allergy. The Company has initiated Peanut Allergy Oral Immunotherapy Study of AR101 for Desensitization in Children and Adults (PALISADE), its Phase III registration trial of AR101. The Company is in the process of evaluating additional delivery forms for AR101 for the maintenance phase.
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