Eyegate Pharmaceuticals (NASDAQ: EYEG) and Lannett (NYSE:LCI) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.
Insider & Institutional Ownership
11.9% of Eyegate Pharmaceuticals shares are held by institutional investors. Comparatively, 99.7% of Lannett shares are held by institutional investors. 24.6% of Eyegate Pharmaceuticals shares are held by insiders. Comparatively, 14.7% of Lannett shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This table compares Eyegate Pharmaceuticals and Lannett’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Eyegate Pharmaceuticals and Lannett’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Eyegate Pharmaceuticals||$670,000.00||17.32||-$13.34 million||($1.18)||-0.57|
Lannett has higher revenue and earnings than Eyegate Pharmaceuticals. Eyegate Pharmaceuticals is trading at a lower price-to-earnings ratio than Lannett, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations and price targets for Eyegate Pharmaceuticals and Lannett, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Eyegate Pharmaceuticals currently has a consensus price target of $3.00, suggesting a potential upside of 344.64%. Lannett has a consensus price target of $20.80, suggesting a potential upside of 15.88%. Given Eyegate Pharmaceuticals’ stronger consensus rating and higher possible upside, equities analysts plainly believe Eyegate Pharmaceuticals is more favorable than Lannett.
Risk & Volatility
Eyegate Pharmaceuticals has a beta of 2.91, indicating that its stock price is 191% more volatile than the S&P 500. Comparatively, Lannett has a beta of 2.51, indicating that its stock price is 151% more volatile than the S&P 500.
Lannett beats Eyegate Pharmaceuticals on 8 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.
Lannett Company Profile
Lannett Company, Inc. develops, manufactures, markets and distributes generic versions of brand pharmaceutical products. The Company manufactures and/or distributes prescription products with the exception of a small portfolio of over-the-counter products manufactured by its subsidiary, Silarx Pharmaceuticals, Inc. As of June 30, 2016, the Company’s products included Acetazolamide Tablets; Butalbital, Acetaminophen and Caffeine Tablets; Butalbital, Aspirin and Caffeine Capsules; C-Topical Solution; Digoxin Tablets; Glycolax Rx; Isosorbide Mononitrate CR; Levothyroxine Sodium Tablets; Methylphenidate HCL CD; Methylphenidate ER; Nifedipine CR; Omeprazole DR; Oxbutynin ER; Pantoprazole DR; Pilocarpine HCl Tablets; Triamterene w/Hydrochlorothiazide Capsules, and Ursodiol Capsules. The Company has additional products under development, which are orally administered solid oral-dosage products (tablet/capsule) or oral solutions, nasal, topicals or parentarels, as well as other dosage forms.
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