Comparing Emergent Biosolutions (NYSE:EBS) & Immatics (NASDAQ:IMTX)

Immatics (NASDAQ:IMTX) and Emergent Biosolutions (NYSE:EBS) are both small-cap healthcare companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.

Volatility & Risk

Immatics has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500. Comparatively, Emergent Biosolutions has a beta of 2.28, meaning that its share price is 128% more volatile than the S&P 500.

Insider and Institutional Ownership

64.4% of Immatics shares are held by institutional investors. Comparatively, 78.4% of Emergent Biosolutions shares are held by institutional investors. 3.3% of Immatics shares are held by company insiders. Comparatively, 6.0% of Emergent Biosolutions shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Immatics and Emergent Biosolutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Immatics	-495.71%	-47.41%	-39.45%
Emergent Biosolutions	-22.95%	16.35%	6.17%

Valuation & Earnings

This table compares Immatics and Emergent Biosolutions”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Immatics	$41.70 million	25.34	-$222.26 million	($1.86)	-4.16
Emergent Biosolutions	$742.90 million	0.50	$52.60 million	($3.55)	-2.04

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for Immatics and Emergent Biosolutions, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Immatics	1	1	6	0	2.62
Emergent Biosolutions	2	1	3	0	2.17

Immatics currently has a consensus target price of $20.60, indicating a potential upside of 166.49%. Emergent Biosolutions has a consensus target price of $10.00, indicating a potential upside of 38.10%. Given Immatics’ stronger consensus rating and higher probable upside, equities analysts plainly believe Immatics is more favorable than Emergent Biosolutions.

Summary

Emergent Biosolutions beats Immatics on 9 of the 14 factors compared between the two stocks.

About Immatics

Immatics N.V., a clinical-stage biopharmaceutical company, focuses on the research and development of potential T cell redirecting immunotherapies for the treatment of cancer in the United States. The company is developing targeted immunotherapies with a focus on treating solid tumors through two distinct treatment modalities, such as TCR-engineered autologous or allogeneic adoptive cell therapies (ACT) and antibody-like TCR Bispecifics. Its products pipeline includes IMA203 that targets solid tumors, which is in Phase 1b clinical trial; IMA203CD8, a cell therapy product that is in Phase 1b clinical trial; IMA204 that targets tumor stroma, which is in preclinical stage; and IMA30x, an allogenic cellular therapy product candidate, which is in preclinical stage. The company also develops TCR Bispecifics products, including IMA401 and IMA402, which is in Phase 1a clinical trial. The company has a strategic collaboration agreement with MD Anderson Cancer Center to develop multiple T cell and TCR-based adoptive cellular therapies; Celgene Corporation to develop novel adoptive cell therapies targeting multiple cancers; and Genmab A/S to develop T cell engaging bispecific immunotherapies targeting multiple cancer indications. Immatics N.V. is headquartered in Tübingen, Germany.

About Emergent Biosolutions

Emergent BioSolutions Inc., a life sciences company, provides preparedness and response solutions for accidental, deliberate, and naturally occurring public health threats in the United States. The company offers NARCAN Nasal Spray for the emergency treatment of known or suspected opioid overdose; Vaxchora vaccine for the prevention of cholera; Vivotif vaccine for oral administration for the prevention of typhoid fever; Anthrasil for the treatment of inhalational anthrax; BioThrax, an anthrax vaccine; CYFENDUS for post-exposure prophylaxis of disease following suspected or confirmed exposure to Bacillus anthracis; and Raxibacumab injection for the treatment and prophylaxis of inhalational anthrax. It also provides ACAM2000, a smallpox vaccine; CNJ-016 to address complications from smallpox vaccination; TEMBEXA for the treatment of smallpox disease caused by variola virus in adult and pediatric patients; BAT for the treatment of symptomatic botulism; Ebanga for the treatment of Ebola; Reactive Skin Decontamination Lotion Kit to remove or neutralize chemical warfare agents from the skin; Trobigard, a atropine sulfate obidoxime chloride auto-injector. In addition, the company is developing CGRD-001 for the treatment of poisoning by organophosphorus nerve agents or organophosphorus compounds; EBS-LASV to prevent Lassa fever; EBS-MARV to prevent Marburg virus disease; EBS-SUDV to prevent Sudan virus disease; Pan-Ebola mAbs for the treatment of ebola virus; SIAN Antidote for initial treatment of certain or suspected acute cyanide poisoning; UniFlu for immunity against influenza A and B viruses; and WEVEE-VLP for equine encephalitis virus infections. Further, it provides contract development and manufacturing services comprising drug substance and product manufacturing, and packaging, as well as technology transfer, process, and analytical development services. The company was incorporated in 1998 and is headquartered in Gaithersburg, Maryland.