Abbott Laboratories (NYSE: ABT) and Eyegate Pharmaceuticals (NASDAQ:EYEG) are both large-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, profitability, risk, dividends, institutional ownership and valuation.

Volatility & Risk

Abbott Laboratories has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500. Comparatively, Eyegate Pharmaceuticals has a beta of 3.26, meaning that its stock price is 226% more volatile than the S&P 500.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Abbott Laboratories $20.85 billion 4.59 $1.40 billion $1.27 43.34
Eyegate Pharmaceuticals $670,000.00 29.27 -$13.34 million ($1.30) -0.88

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

Insider & Institutional Ownership

71.4% of Abbott Laboratories shares are owned by institutional investors. Comparatively, 13.0% of Eyegate Pharmaceuticals shares are owned by institutional investors. 0.8% of Abbott Laboratories shares are owned by company insiders. Comparatively, 24.6% of Eyegate Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for Abbott Laboratories and Eyegate Pharmaceuticals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Abbott Laboratories 0 5 9 0 2.64
Eyegate Pharmaceuticals 0 0 4 0 3.00

Abbott Laboratories presently has a consensus target price of $57.64, indicating a potential upside of 4.73%. Given Eyegate Pharmaceuticals’ stronger consensus rating and higher possible upside, analysts plainly believe Eyegate Pharmaceuticals is more favorable than Abbott Laboratories.

Dividends

Abbott Laboratories pays an annual dividend of $1.06 per share and has a dividend yield of 1.9%. Eyegate Pharmaceuticals does not pay a dividend. Abbott Laboratories pays out 83.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Eyegate Pharmaceuticals has increased its dividend for 44 consecutive years.

Profitability

This table compares Abbott Laboratories and Eyegate Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Abbott Laboratories 8.37% 14.50% 6.26%
Eyegate Pharmaceuticals -1,737.29% -840.69% -105.23%

Summary

Abbott Laboratories beats Eyegate Pharmaceuticals on 9 of the 16 factors compared between the two stocks.

Abbott Laboratories Company Profile

Abbott Laboratories is engaged in the discovery, development, manufacture and sale of a range of healthcare products. The Company operates through four segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products and Vascular Products. Its Established Pharmaceutical Products include a range of branded generic pharmaceuticals manufactured around the world and marketed and sold outside the United States. Its Diagnostic Products include a range of diagnostic systems and tests. Its Nutritional Products include a range of pediatric and adult nutritional products. Its Company’s Vascular Products include a range of coronary, endovascular, vessel closure and structural heart devices for the treatment of vascular disease. The Company, through St. Jude Medical, Inc., also offers products, such as rhythm management products, electrophysiology products, heart failure related products, vascular products, structural heart products and neuromodulation products.

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.

Receive News & Ratings for Abbott Laboratories Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Abbott Laboratories and related companies with MarketBeat.com's FREE daily email newsletter.