Eagle Pharmaceuticals (NASDAQ: EGRX) and Macrocure (NASDAQ:MCUR) are both medical companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, valuation, analyst recommendations, risk, earnings, dividends and institutional ownership.

Profitability

This table compares Eagle Pharmaceuticals and Macrocure’s 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%
Macrocure N/A -24.50% -22.85%

Insider and Institutional Ownership

2.8% of Macrocure shares are held by institutional investors. 19.5% of Eagle 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.

Risk & Volatility

Eagle Pharmaceuticals has a beta of 1.31, meaning that its share price is 31% more volatile than the S&P 500. Comparatively, Macrocure has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500.

Earnings and Valuation

This table compares Eagle Pharmaceuticals and Macrocure’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Eagle Pharmaceuticals $245.88 million 3.34 $83.49 million $5.95 9.09
Macrocure N/A N/A N/A ($1.91) -0.79

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Eagle Pharmaceuticals and Macrocure, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eagle Pharmaceuticals 1 0 3 0 2.50
Macrocure 0 0 0 0 N/A

Eagle Pharmaceuticals currently has a consensus target price of $73.25, suggesting a potential upside of 35.40%. Given Eagle Pharmaceuticals’ higher probable upside, analysts plainly believe Eagle Pharmaceuticals is more favorable than Macrocure.

Summary

Eagle Pharmaceuticals beats Macrocure on 9 of the 10 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 Macrocure

Leap Therapeutics Ltd, formerly Macrocure Ltd, is a biotechnology company. The Company is focused on developing, manufacturing and commercializing cell therapy products to address unmet needs for the treatment of chronic wounds, such as diabetic foot ulcers (DFUs) and venous leg ulcers (VLUs). Its product candidate, CureXcell, is a combination of living human white blood cells that have been activated to facilitate the healing process and stimulate wound closure. CureXcell is in Phase III. Its CureXcell addresses each phase of healing in the impaired wound, including the production of growth factors and other biochemical factors involved in fibroblast activation, cell migration and extracellular matrix production, stimulating the body’s natural healing process. Its delivery method of direct superficial injection into the chronic wound allows the precise delivery of the cells into the defective wound tissue where they can be effective.

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