Critical Contrast: AbbVie (ABBV) versus Eagle Pharmaceuticals (EGRX)
AbbVie (NYSE: ABBV) and Eagle Pharmaceuticals (NASDAQ:EGRX) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.
Volatility and Risk
AbbVie has a beta of 1.48, suggesting that its share price is 48% more volatile than the S&P 500. Comparatively, Eagle Pharmaceuticals has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500.
Institutional & Insider Ownership
68.3% of AbbVie shares are held by institutional investors. 0.2% of AbbVie shares are held by company insiders. Comparatively, 19.5% of Eagle Pharmaceuticals shares are held 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 summary of recent ratings and recommmendations for AbbVie and Eagle Pharmaceuticals, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
AbbVie currently has a consensus target price of $83.75, indicating a potential downside of 4.19%. Eagle Pharmaceuticals has a consensus target price of $72.50, indicating a potential upside of 26.33%. Given Eagle Pharmaceuticals’ higher probable upside, analysts clearly believe Eagle Pharmaceuticals is more favorable than AbbVie.
This table compares AbbVie and Eagle Pharmaceuticals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
AbbVie pays an annual dividend of $2.56 per share and has a dividend yield of 2.9%. Eagle Pharmaceuticals does not pay a dividend. AbbVie pays out 62.9% of its earnings in the form of a dividend. Eagle Pharmaceuticals has increased its dividend for 44 consecutive years.
Earnings & Valuation
This table compares AbbVie and Eagle Pharmaceuticals’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|AbbVie||$26.71 billion||5.22||$11.57 billion||$4.07||21.48|
|Eagle Pharmaceuticals||$245.88 million||3.54||$83.99 million||$5.95||9.65|
AbbVie has higher revenue and earnings than Eagle Pharmaceuticals. Eagle Pharmaceuticals is trading at a lower price-to-earnings ratio than AbbVie, indicating that it is currently the more affordable of the two stocks.
AbbVie beats Eagle Pharmaceuticals on 10 of the 17 factors compared between the two stocks.
AbbVie Inc. (AbbVie) is a research-based biopharmaceutical company. The Company is engaged in the discovery, development, manufacture and sale of a range of pharmaceutical products. Its products are focused on treating conditions, such as chronic autoimmune diseases in rheumatology, gastroenterology and dermatology; oncology, including blood cancers; virology, including hepatitis C virus (HCV) and human immunodeficiency virus (HIV); neurological disorders, such as Parkinson’s disease and multiple sclerosis; metabolic diseases, including thyroid disease and complications associated with cystic fibrosis, and other serious health conditions. It offers products in various categories, including HUMIRA (adalimumab), Oncology products, Virology Products, Additional Virology products, Metabolics/Hormones products, Endocrinology products and other products, which include Duopa and Duodopa (carbidopa and levodopa), Anesthesia products and ZINBRYTA (daclizumab).
About Eagle Pharmaceuticals
Eagle Pharmaceuticals, Inc. is a specialty pharmaceutical company. The Company focuses on developing and commercializing injectable products in the critical care and oncology areas. The Company’s product portfolio includes products, including Argatroban; Ryanodex; docetaxel injection, non-alcohol formulation; and Bendeka. Its advanced candidates include EP-3101 (bendamustine Resistance Temperature Detectors (RTD)) (EP-3101), EP-4104 (dantrolene sodium for exertional heat stroke (EHS)) (EP-4104), EGL-4104-C-1702 (dantrolene sodium for drug induced hyperthermia), EP-5101 (pemetrexed) (EP-5101) and EGL-5385-C-1701 (fulvestrant). Its product portfolio focuses on oncology, critical care and orphan diseases. Bendamustine is an alkylating agent approved for use in chronic lymphocytic leukemia (CLL), and indolent B-cell non-Hodgkin’s lymphoma (NHL), that has progressed during or within six months of treatment with rituximab or a rituximab-containing regimen.
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