Assembly Biosciences (ASMB) & Eagle Pharmaceuticals (EGRX) Financial Analysis

Assembly Biosciences (NASDAQ: ASMB) and Eagle Pharmaceuticals (NASDAQ:EGRX) are both small-cap healthcare companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.

Profitability

This table compares Assembly Biosciences and Eagle Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Assembly Biosciences N/A -81.70% -43.94%
Eagle Pharmaceuticals 36.95% 62.60% 44.24%

Volatility & Risk

Assembly Biosciences has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500. Comparatively, Eagle Pharmaceuticals has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500.

Institutional and Insider Ownership

62.0% of Assembly Biosciences shares are held by institutional investors. 19.6% of Assembly Biosciences shares are held by company insiders. Comparatively, 19.5% of Eagle Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for Assembly Biosciences and Eagle Pharmaceuticals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Assembly Biosciences 0 0 2 0 3.00
Eagle Pharmaceuticals 1 0 2 0 2.33

Assembly Biosciences presently has a consensus target price of $42.50, suggesting a potential downside of 4.79%. Eagle Pharmaceuticals has a consensus target price of $62.33, suggesting a potential upside of 16.08%. Given Eagle Pharmaceuticals’ higher possible upside, analysts clearly believe Eagle Pharmaceuticals is more favorable than Assembly Biosciences.

Earnings and Valuation

This table compares Assembly Biosciences and Eagle Pharmaceuticals’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Assembly Biosciences N/A N/A -$44.26 million ($2.97) -15.03
Eagle Pharmaceuticals $189.48 million 4.23 $81.45 million $6.20 8.66

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

Summary

Eagle Pharmaceuticals beats Assembly Biosciences on 8 of the 11 factors compared between the two stocks.

About Assembly Biosciences

Assembly Biosciences, Inc. is a biotechnology company. The Company is engaged in developing two platform programs, such as a class of oral therapeutics for the treatment of hepatitis B virus (HBV) infection, and a class of oral synthetic live therapeutics, which are designed to restore health to a dysbiotic microbiome. It has discovered various core protein Allosteric Modulators (CpAMs), which are small molecules that directly target and allosterically modulate the HBV core (HBc) protein. Its Microbiome Program consists of an integrated platform that includes a strain identification and selection process, methods for strain isolation and growth under current good manufacturing practice conditions, and a delivery system, GEMICEL, which allows for targeted oral delivery of live biologic and conventional therapies to the lower gastrointestinal (GI) tract. The lead product candidate from this platform, AB-M101, is in development for the treatment of clostridium difficile-infections.

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.

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