Critical Contrast: DARA Biosciences (DARA) & Eagle Pharmaceuticals (EGRX)

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

Earnings and Valuation

This table compares DARA Biosciences and Eagle Pharmaceuticals’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
DARA Biosciences N/A N/A N/A ($0.52) -1.69
Eagle Pharmaceuticals $189.48 million 4.47 $81.45 million $6.21 9.15

Eagle Pharmaceuticals has higher revenue and earnings than DARA Biosciences. DARA 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.

Risk & Volatility

DARA Biosciences has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500. Comparatively, Eagle Pharmaceuticals has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
DARA Biosciences -228.42% -145.61% -100.38%
Eagle Pharmaceuticals 36.95% 62.60% 44.24%

Analyst Recommendations

This is a breakdown of current ratings and target prices for DARA Biosciences and Eagle Pharmaceuticals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DARA Biosciences 0 0 0 0 N/A
Eagle Pharmaceuticals 1 0 2 0 2.33

Eagle Pharmaceuticals has a consensus price target of $63.67, indicating a potential upside of 12.07%. Given Eagle Pharmaceuticals’ higher possible upside, analysts clearly believe Eagle Pharmaceuticals is more favorable than DARA Biosciences.

Summary

Eagle Pharmaceuticals beats DARA Biosciences on 9 of the 9 factors compared between the two stocks.

About DARA Biosciences

DARA BioSciences Inc is specialty pharmaceutical company based in the United States. The Company’s primary focus is on the commercialization of oncology treatment and oncology supportive care pharmaceutical products, including Soltamox, an oral solution of tamoxifen citrate; cancer support therapeutics, including Gelclair, indicated for the treatment of oral mucositis and Bionect, for the management of irritation of the skin as well as first and second degree burns, and Three Mission Pharmacal products, including Ferralet 90 (for anemia), Binosto (alendronate sodium effervescent tablet indicated for the treatment of osteoporosis) and Aquoral (for cancer related dry mouth). The Company has a clinical development asset, KRN5500, which is a Phase II product candidate targeted for treating cancer patients with painful treatment-refractory chronic chemotherapy induced peripheral neuropathy. The Company is a subsidiary of Midatech Pharma Plc.

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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