Spectrum Pharmaceuticals (NASDAQ: SPPI) and Nabriva Therapeutics AG (NASDAQ:NBRV) are both small-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, profitabiliy, analyst recommendations, institutional ownership, dividends, valuation and risk.

Profitability

This table compares Spectrum Pharmaceuticals and Nabriva Therapeutics AG’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Spectrum Pharmaceuticals -62.39% -24.06% -13.22%
Nabriva Therapeutics AG N/A -76.53% -63.87%

Risk & Volatility

Spectrum Pharmaceuticals has a beta of 1.49, meaning that its share price is 49% more volatile than the S&P 500. Comparatively, Nabriva Therapeutics AG has a beta of 1.65, meaning that its share price is 65% more volatile than the S&P 500.

Institutional and Insider Ownership

67.3% of Spectrum Pharmaceuticals shares are held by institutional investors. Comparatively, 56.7% of Nabriva Therapeutics AG shares are held by institutional investors. 14.5% of Spectrum Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Spectrum Pharmaceuticals and Nabriva Therapeutics AG’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Spectrum Pharmaceuticals $131.68 million 4.79 -$49.21 million ($1.08) -7.44
Nabriva Therapeutics AG $6.74 million 4.23 -$55.28 million ($2.47) -4.25

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Spectrum Pharmaceuticals and Nabriva Therapeutics AG, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Spectrum Pharmaceuticals 0 0 4 0 3.00
Nabriva Therapeutics AG 0 0 6 0 3.00

Spectrum Pharmaceuticals currently has a consensus price target of $10.00, indicating a potential upside of 24.38%. Nabriva Therapeutics AG has a consensus price target of $16.00, indicating a potential upside of 52.53%. Given Nabriva Therapeutics AG’s higher possible upside, analysts clearly believe Nabriva Therapeutics AG is more favorable than Spectrum Pharmaceuticals.

Summary

Spectrum Pharmaceuticals beats Nabriva Therapeutics AG on 8 of the 12 factors compared between the two stocks.

Spectrum Pharmaceuticals Company Profile

Spectrum Pharmaceuticals, Inc. is a biotechnology company. The Company operates through developing and commercializing oncology and hematology drug products segment. It has a product portfolio consisting of both commercial stage and development stage products that address various cancer types. The Company has six approved oncology/hematology products that target different types of cancer, including non-Hodgkin’s lymphoma (NHL), advanced metastatic colorectal cancer (mCRC), acute lymphoblastic leukemia (ALL) and multiple myeloma (MM). It also has three drugs in mid-to-late stage development, which include ROLONTIS for chemotherapy-induced neutropenia; QAPZOLA for immediate intravesical instillation in post-transurethral resection of bladder tumors in patients with non-muscle invasive bladder cancer (NMIBC), and POZIOTINIB, a pan-human epidermal growth factor receptor (HER) inhibitor used in the treatment of patients with a range of solid tumors, including breast and lung cancer.

Nabriva Therapeutics AG Company Profile

Nabriva Therapeutics AG is an Austria-based clinical-stage biopharmaceutical company engaged in the research and development of antibiotics to treat infections. Its lead product candidate, lefamulin, is a pleuromutilin antibiotic for systemic administration in humans. The Company develops both intravenous (IV) and oral formulations of lefamulin for the treatment of community-acquired bacterial pneumonia (CABP). The Company also develops BC-7013, a semi-synthetic compound derived from pleuromutilin for the topical treatment of Gram-positive infections, including uncomplicated skin and skin structure infections (uSSIs). It is a spin-off from Sandoz GmbH Antibiotics Research Institute (ABRI) in Vienna, Austria.

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