Head-To-Head Review: Eagle Pharmaceuticals (EGRX) & Aimmune Therapeutics (AIMT)

Eagle Pharmaceuticals (NASDAQ: EGRX) and Aimmune Therapeutics (NASDAQ:AIMT) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, profitability, institutional ownership and valuation.

Valuation & Earnings

This table compares Eagle Pharmaceuticals and Aimmune Therapeutics’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Eagle Pharmaceuticals $245.88 million 3.71 $83.99 million $5.95 10.10
Aimmune Therapeutics N/A N/A -$106.22 million ($2.25) -10.32

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 share price is 30% more volatile than the S&P 500. Comparatively, Aimmune Therapeutics has a beta of -1.1, meaning that its share price is 210% less volatile than the S&P 500.

Insider & Institutional 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 hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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
Eagle Pharmaceuticals 39.32% 66.30% 48.44%
Aimmune Therapeutics N/A -44.53% -42.00%

Analyst Ratings

This is a breakdown of recent recommendations for Eagle Pharmaceuticals and Aimmune Therapeutics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eagle Pharmaceuticals 1 0 3 0 2.50
Aimmune Therapeutics 0 0 2 0 3.00

Eagle Pharmaceuticals currently has a consensus target price of $72.50, indicating a potential upside of 20.61%. Aimmune Therapeutics has a consensus target price of $36.67, indicating a potential upside of 57.91%. Given Aimmune Therapeutics’ stronger consensus rating and higher possible upside, analysts plainly believe Aimmune Therapeutics is more favorable than Eagle Pharmaceuticals.

Summary

Eagle Pharmaceuticals beats Aimmune Therapeutics on 8 of the 12 factors compared between the two stocks.

Eagle Pharmaceuticals Company Profile

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.

Aimmune Therapeutics Company Profile

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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