Contrasting Innoviva (INVA) and Eyegate Pharmaceuticals (EYEG)

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

Insider and Institutional Ownership

74.2% of Innoviva shares are owned by institutional investors. Comparatively, 11.9% of Eyegate Pharmaceuticals shares are owned by institutional investors. 1.6% of Innoviva 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, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Innoviva and Eyegate Pharmaceuticals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Innoviva 1 3 1 0 2.00
Eyegate Pharmaceuticals 0 0 2 0 3.00

Innoviva presently has a consensus target price of $13.40, indicating a potential downside of 13.16%. Eyegate Pharmaceuticals has a consensus target price of $3.00, indicating a potential upside of 344.44%. Given Eyegate Pharmaceuticals’ stronger consensus rating and higher possible upside, analysts clearly believe Eyegate Pharmaceuticals is more favorable than Innoviva.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Innoviva $217.22 million 7.67 $59.53 million $1.11 13.90
Eyegate Pharmaceuticals $670,000.00 17.33 -$13.34 million ($1.17) -0.58

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

Profitability

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

Net Margins Return on Equity Return on Assets
Innoviva 61.76% -47.13% 34.85%
Eyegate Pharmaceuticals -2,480.28% -1,494.75% -100.47%

Summary

Innoviva beats Eyegate Pharmaceuticals on 8 of the 13 factors compared between the two stocks.

Innoviva Company Profile

Innoviva, Inc., formerly Theravance, Inc., is engaged in the development, commercialization and financial management of bio-pharmaceuticals. It focuses on the respiratory assets partnered with Glaxo Group Limited (GSK), including RELVAR/BREO ELLIPTA (fluticasone furoate (FF)/vilanterol (VI)) and ANORO ELLIPTA (umeclidinium bromide/vilanterol (UMEC/VI)). Under the Long-Acting Beta2 Agonist (LABA) Collaboration Agreement and the Strategic Alliance Agreement with GSK, the Company is eligible to receive the annual royalties from GSK on sales of RELVAR/BREO ELLIPTA. For other products combined with a LABA from the LABA collaboration, such as ANORO ELLIPTA, royalties are upward tiering and range from 6.5% to 10%. RELVAR/BREO is a once-a-day combination inhaled respiratory medicine consisting of a LABA (VI) and an inhaled corticosteroid (ICS), FF. ANORO ELLIPTA a once-daily medicine combining a long-acting muscarinic antagonist (LAMA), umeclidinium bromide (UMEC), with a LABA.

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.

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