Mesoblast (NASDAQ: MESO) and Eiger Biopharmaceuticals (NASDAQ:EIGR) are both small-cap medical companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, risk, analyst recommendations, valuation, institutional ownership and profitability.

Valuation and Earnings

This table compares Mesoblast and Eiger Biopharmaceuticals’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mesoblast $2.41 million 206.10 -$76.81 million ($0.78) -7.44
Eiger Biopharmaceuticals N/A N/A -$47.08 million ($5.30) -2.58

Eiger Biopharmaceuticals has lower revenue, but higher earnings than Mesoblast. Mesoblast is trading at a lower price-to-earnings ratio than Eiger Biopharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and target prices for Mesoblast and Eiger Biopharmaceuticals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mesoblast 0 2 4 0 2.67
Eiger Biopharmaceuticals 0 0 7 0 3.00

Mesoblast currently has a consensus target price of $14.25, indicating a potential upside of 145.69%. Eiger Biopharmaceuticals has a consensus target price of $32.86, indicating a potential upside of 140.71%. Given Mesoblast’s higher probable upside, equities analysts clearly believe Mesoblast is more favorable than Eiger Biopharmaceuticals.

Profitability

This table compares Mesoblast and Eiger Biopharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mesoblast -2,006.86% -12.04% -9.60%
Eiger Biopharmaceuticals N/A -169.16% -95.71%

Risk and Volatility

Mesoblast has a beta of 2.68, meaning that its stock price is 168% more volatile than the S&P 500. Comparatively, Eiger Biopharmaceuticals has a beta of 2.55, meaning that its stock price is 155% more volatile than the S&P 500.

Institutional and Insider Ownership

2.9% of Mesoblast shares are owned by institutional investors. Comparatively, 47.1% of Eiger Biopharmaceuticals shares are owned by institutional investors. 18.8% of Mesoblast shares are owned by company insiders. Comparatively, 28.8% of Eiger Biopharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Eiger Biopharmaceuticals beats Mesoblast on 7 of the 13 factors compared between the two stocks.

Mesoblast Company Profile

Mesoblast Limited is engaged in developing cell-based medicines. The Company has leveraged its technology platform, which is based on specialized cells known as mesenchymal lineage adult stem cells, to establish a portfolio of late-stage product candidates. Its allogeneic, off-the-shelf cell product candidates target advanced stages of diseases with high, unmet medical needs, including cardiovascular conditions, orthopedic disorders, immunologic and inflammatory disorders and oncologic/hematologic conditions.

Eiger Biopharmaceuticals Company Profile

Eiger BioPharmaceuticals, Inc., formerly Celladon Corporation, is a clinical-stage biopharmaceutical company. The Company is focused on the development and commercialization of products for the treatment of orphan diseases. Its pipeline includes Sarasar (lonafarnib) for hepatitis delta virus (HDV), exendin (9-39) for severe hypoglycemia, and Bestatin (ubenimex) for pulmonary arterial hypertension (PAH) and lymphedema. Lonafarnib is an orally active inhibitor of farnesyl transferase that inhibits the prenylation step of HDV replication inside liver cells and blocks the ability of the virus to multiply. It is conducting over three Phase II clinical trials, which include LOnafarnib With and without Ritonavir (LOWR) HDV-2 (Ankara, Turkey), LOWR HDV-3 (NIH) and LOWR HDV-4 (Hannover, Germany). Exendin is in Phase II clinical studies for the treatment of hypoglycemia associated with bariatric surgery. Ubenimex is in Phase II clinical studies for the treatment of PAH and lymphedema.

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