Emergent Biosolutions (NYSE: EBS) and Tetraphase Pharmaceuticals (NASDAQ:TTPH) are both medical companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, dividends, analyst recommendations, earnings and profitability.

Earnings & Valuation

This table compares Emergent Biosolutions and Tetraphase Pharmaceuticals’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Emergent Biosolutions $560.87 million 4.38 $82.59 million $1.69 29.39
Tetraphase Pharmaceuticals $5.14 million 26.50 -$77.48 million ($2.87) -0.92

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


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

Net Margins Return on Equity Return on Assets
Emergent Biosolutions 14.73% 13.66% 9.54%
Tetraphase Pharmaceuticals -1,382.33% -88.27% -77.53%

Risk and Volatility

Emergent Biosolutions has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500. Comparatively, Tetraphase Pharmaceuticals has a beta of 2.74, suggesting that its share price is 174% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Emergent Biosolutions and Tetraphase Pharmaceuticals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Emergent Biosolutions 0 1 3 0 2.75
Tetraphase Pharmaceuticals 0 3 5 0 2.63

Emergent Biosolutions currently has a consensus price target of $52.75, suggesting a potential upside of 6.20%. Tetraphase Pharmaceuticals has a consensus price target of $10.14, suggesting a potential upside of 284.20%. Given Tetraphase Pharmaceuticals’ higher possible upside, analysts plainly believe Tetraphase Pharmaceuticals is more favorable than Emergent Biosolutions.

Institutional & Insider Ownership

78.2% of Emergent Biosolutions shares are held by institutional investors. Comparatively, 56.3% of Tetraphase Pharmaceuticals shares are held by institutional investors. 16.5% of Emergent Biosolutions shares are held by company insiders. Comparatively, 5.5% of Tetraphase Pharmaceuticals shares are held 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.


Emergent Biosolutions beats Tetraphase Pharmaceuticals on 10 of the 14 factors compared between the two stocks.

About Emergent Biosolutions

Emergent BioSolutions Inc. is a life sciences company. The Company focuses on protecting and enhancing life by providing specialty products for civilian and military populations that address accidental, intentional and naturally emerging public health threats. It focuses on developing, manufacturing and commercializing medical countermeasures that address public health threats (PHTs). The PHTs operates through two categories: Chemical, Biological, Radiological and Nuclear, as well as explosive-related threats and emerging infectious diseases. It operates through four business units: Vaccines and Anti-infectives; Antibody Therapeutics; Devices, and Contract Manufacturing. Vaccines and Anti-infectives business unit consists of BioThrax, which is for the general use prophylaxis and post-exposure prophylaxis of anthrax disease. Devices business unit consists of marketed products, such as Reactive Skin Decontamination Lotion Kit (RSDL) and Trobigard (atropine sulfate, obidoxime chloride).

About Tetraphase Pharmaceuticals

Tetraphase Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company. The Company uses its chemistry technology to create antibiotics for multidrug-resistant infections. The Company is developing its lead product candidate, eravacycline, a fully synthetic tetracycline derivative, as a spectrum intravenous (IV) and oral antibiotic for use as a first-line empiric monotherapy for the treatment of multidrug-resistant infections, including multidrug-resistant gram-negative infections. The Company also develops TP-6076 for multidrug-resistant gram-negative infections. Eravacycline is a fluorocycline antibiotic. The Company is conducting a global Phase III clinical program for eravacycline called Investigating Gram-Negative Infections Treated with Eravacycline (IGNITE). TP-271 is a fully synthetic fluorocycline being developed for respiratory disease caused by bacterial biothreat pathogens in healthy volunteers.

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