Eyegate Pharmaceuticals (NASDAQ: EYEG) and Emergent Biosolutions (NYSE:EBS) are both small-cap medical companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, dividends, valuation, institutional ownership, profitability, risk and analyst recommendations.

Profitability

This table compares Eyegate Pharmaceuticals and Emergent Biosolutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Eyegate Pharmaceuticals -1,737.29% -840.69% -105.23%
Emergent Biosolutions 13.42% 14.50% 9.00%

Institutional and Insider Ownership

13.0% of Eyegate Pharmaceuticals shares are held by institutional investors. Comparatively, 85.3% of Emergent Biosolutions shares are held by institutional investors. 24.6% of Eyegate Pharmaceuticals shares are held by company insiders. Comparatively, 16.5% of Emergent Biosolutions shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Eyegate Pharmaceuticals and Emergent Biosolutions’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Eyegate Pharmaceuticals $767,481.00 24.83 -$13.31 million ($1.30) -0.85
Emergent Biosolutions $512.21 million 3.24 $159.99 million $1.46 27.60

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

Risk and Volatility

Eyegate Pharmaceuticals has a beta of 3.32, suggesting that its share price is 232% more volatile than the S&P 500. Comparatively, Emergent Biosolutions has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Eyegate Pharmaceuticals and Emergent Biosolutions, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eyegate Pharmaceuticals 0 0 4 0 3.00
Emergent Biosolutions 0 1 2 0 2.67

Eyegate Pharmaceuticals presently has a consensus target price of $7.33, suggesting a potential upside of 562.03%. Emergent Biosolutions has a consensus target price of $45.00, suggesting a potential upside of 11.66%. Given Eyegate Pharmaceuticals’ stronger consensus rating and higher probable upside, research analysts plainly believe Eyegate Pharmaceuticals is more favorable than Emergent Biosolutions.

Summary

Emergent Biosolutions beats Eyegate Pharmaceuticals on 7 of the 13 factors compared between the two stocks.

Eyegate Pharmaceuticals Company Profile

Eyegate Pharmaceuticals, Inc. is a clinical-stage specialty pharmaceutical company. The Company is focused on developing and commercializing therapeutics and drug delivery systems for treating diseases of the eye. The Company’s lead product, EGP-437, incorporates a reformulated topically active corticosteroid, dexamethasone phosphate, which is delivered into the ocular tissues through its drug delivery system, the EyeGate II Delivery System. The Company is developing EGP-437 for the treatment of various inflammatory conditions of the eye, including uveitis, a debilitating form of intraocular inflammation of the anterior portion of the uvea, such as the iris and/or ciliary body, and macular edema, an abnormal thickening of the macula associated with the accumulation of excess fluids in the extracellular space of the neurosensory retina. The EyeGate II Delivery System is designed to deliver optimal quantities of drugs to the anterior or posterior segments of the eye.

Emergent Biosolutions Company Profile

Emergent BioSolutions Inc. is a life sciences company. The Company focuses on protecting and enhancing life by providing specialty products for civilian and military populations that address accidental, intentional and naturally emerging public health threats. It focuses on developing, manufacturing and commercializing medical countermeasures that address public health threats (PHTs). The PHTs operates through two categories: Chemical, Biological, Radiological and Nuclear, as well as explosive-related threats and emerging infectious diseases. It operates through four business units: Vaccines and Anti-infectives; Antibody Therapeutics; Devices, and Contract Manufacturing. Vaccines and Anti-infectives business unit consists of BioThrax, which is for the general use prophylaxis and post-exposure prophylaxis of anthrax disease. Devices business unit consists of marketed products, such as Reactive Skin Decontamination Lotion Kit (RSDL) and Trobigard (atropine sulfate, obidoxime chloride).

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