ESSA Pharma (NASDAQ:EPIX) and NewLink Genetics (NASDAQ:NLNK) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, risk and analyst recommendations.
Insider & Institutional Ownership
60.6% of ESSA Pharma shares are owned by institutional investors. Comparatively, 38.3% of NewLink Genetics shares are owned by institutional investors. 12.3% of NewLink Genetics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This is a breakdown of recent ratings and recommmendations for ESSA Pharma and NewLink Genetics, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
ESSA Pharma currently has a consensus price target of $0.70, suggesting a potential downside of 72.00%. NewLink Genetics has a consensus price target of $5.20, suggesting a potential upside of 184.15%. Given NewLink Genetics’ higher possible upside, analysts plainly believe NewLink Genetics is more favorable than ESSA Pharma.
Earnings & Valuation
This table compares ESSA Pharma and NewLink Genetics’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|ESSA Pharma||N/A||N/A||-$4.72 million||($8.00)||-0.31|
|NewLink Genetics||$28.71 million||2.37||-$71.95 million||($2.30)||-0.80|
ESSA Pharma has higher earnings, but lower revenue than NewLink Genetics. NewLink Genetics is trading at a lower price-to-earnings ratio than ESSA Pharma, indicating that it is currently the more affordable of the two stocks.
This table compares ESSA Pharma and NewLink Genetics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
ESSA Pharma has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, NewLink Genetics has a beta of 1.41, indicating that its stock price is 41% more volatile than the S&P 500.
NewLink Genetics beats ESSA Pharma on 7 of the 12 factors compared between the two stocks.
About ESSA Pharma
ESSA Pharma Inc., a clinical stage pharmaceutical company, focuses on the development of novel therapeutics for the treatment of prostate cancer. It is developing EPI-506 that is in Phase 1/2 clinical trials for the treatment of prostate cancer. The company was founded in 2009 and is headquartered in Vancouver, Canada.
About NewLink Genetics
NewLink Genetics Corporation, a late clinical-stage immuno-oncology company, focuses on discovering and developing novel immunotherapeutic products for the treatment of patients with cancer. It is developing NLG2103, a combination of indoximod and standard of care checkpoint inhibitors, which is in Phase II clinical trial for treating patients with advanced melanoma; and Indigo301, a combination of indoximod with a checkpoint inhibitor that is in Phase III clinical trial for treating patients with advanced unresectable or metastatic melanoma, as well as combination of indoximod with other cancer therapeutics for patients with melanoma, pancreatic cancer, pediatric brain tumors, and acute myeloid leukemia. The company is also developing NLG802, a prodrug of indoximod, which has completed Phase I clinical trial; and NLG919, a clinical stage indoleamine-2, 3-dioxygenase pathway inhibitor. In addition, it is developing tergenpumatucel-L and dorgenmeltucel-L that are in Phase II clinical trials for treating patients with advanced lung cancer and melanoma; and CRLX101 and CRLX301, which are in early clinical development to treat patients with advanced solid malignancies. The company has strategic collaboration agreement with AstraZeneca to evaluate the combination of indoximod and durvalumab, an anti-PD-L1 monoclonal antibody for treating patients with metastatic pancreatic cancer; Genentech Inc. for the development and commercialization of NLG919, as well as a research collaboration for the discovery of next generation IDO/TDO inhibitors; and Merck Sharpe and Dohme Corp. to research, develop, and commercialize rVSV G-ZEBOV GP, an Ebola vaccine product candidate. NewLink Genetics Corporation was founded in 1999 and is headquartered in Ames, Iowa.
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