Enanta Pharmaceuticals (NASDAQ: ENTA) and Global Blood Therapeutics (NASDAQ:GBT) are both small-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, valuation, profitability and institutional ownership.

Institutional and Insider Ownership

66.1% of Enanta Pharmaceuticals shares are owned by institutional investors. Comparatively, 86.1% of Global Blood Therapeutics shares are owned by institutional investors. 9.3% of Enanta Pharmaceuticals shares are owned by company insiders. Comparatively, 5.3% of Global Blood Therapeutics shares are owned 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.

Volatility & Risk

Enanta Pharmaceuticals has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500. Comparatively, Global Blood Therapeutics has a beta of 4.22, meaning that its stock price is 322% more volatile than the S&P 500.

Profitability

This table compares Enanta Pharmaceuticals and Global Blood Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Enanta Pharmaceuticals -51.85% -7.74% -7.39%
Global Blood Therapeutics N/A -38.92% -36.49%

Analyst Ratings

This is a summary of recent ratings and target prices for Enanta Pharmaceuticals and Global Blood Therapeutics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enanta Pharmaceuticals 0 1 2 0 2.67
Global Blood Therapeutics 0 0 12 0 3.00

Enanta Pharmaceuticals currently has a consensus target price of $38.00, indicating a potential downside of 11.81%. Global Blood Therapeutics has a consensus target price of $52.91, indicating a potential upside of 86.61%. Given Global Blood Therapeutics’ stronger consensus rating and higher possible upside, analysts plainly believe Global Blood Therapeutics is more favorable than Enanta Pharmaceuticals.

Valuation & Earnings

This table compares Enanta Pharmaceuticals and Global Blood Therapeutics’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Enanta Pharmaceuticals $39.73 million 20.70 -$30.75 million ($1.07) -40.27
Global Blood Therapeutics N/A N/A -$95.43 million ($2.47) -11.48

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

Enanta Pharmaceuticals Company Profile

Enanta Pharmaceuticals, Inc. is a research and development-focused biotechnology company. The Company uses chemistry-driven approach and drug discovery solutions to create small molecule drugs for the treatment of viral infections and liver diseases. Its research and development programs are focused on three disease targets: non-alcoholic steatohepatitis (NASH)/ primary biliary cholangitis (PBC), respiratory syncytial virus (RSV) and hepatitis B virus (HBV). It has discovered novel protease inhibitors that are members of the direct-acting-antiviral (DAA) inhibitor classes designed for use against the hepatitis C virus (HCV). These protease inhibitors, developed through its collaboration with AbbVie Inc. (AbbVie), include paritaprevir and glecaprevir (ABT-493). Its product candidates also include EDP-305, which is a farnesoid X receptor (FXR) agonist product candidate for NASH and PBC, and EDP-938, which is a clinical candidate for RSV.

Global Blood Therapeutics Company Profile

Global Blood Therapeutics, Inc. is a clinical-stage biopharmaceutical company. The Company is engaged in discovering, developing and commercializing therapeutics to treat blood-based disorders. The Company is developing its initial product candidate, GBT440, as an oral, once-daily therapy for sickle cell disease (SCD). The Company is evaluating GBT440 in SCD in a Phase III clinical trial of GBT440 in adult and adolescent patients with SCD. GBT440 inhibits abnormal hemoglobin polymerization, the underlying mechanism of RBC sickling. The Company is also engaged in other research and development activities targeted towards hereditary angioedema (HAE). The Company’s GBT440 is an investigational drug that increases hemoglobin’s affinity for oxygen by binding to the alpha-chain of hemoglobin. GBT440 has been observed to keep a proportion of sickle hemoglobin (HbS), in its oxygenated state, where it cannot participate in polymerization.

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