Eiger Biopharmaceuticals (NASDAQ: EIGR) and Mesoblast (NASDAQ:MESO) are both small-cap healthcare companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, profitability, earnings, analyst recommendations and dividends.

Insider & Institutional Ownership

47.1% of Eiger Biopharmaceuticals shares are held by institutional investors. Comparatively, 2.9% of Mesoblast shares are held by institutional investors. 28.8% of Eiger Biopharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Eiger Biopharmaceuticals and Mesoblast’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Eiger Biopharmaceuticals N/A N/A -$47.08 million ($5.30) -2.51
Mesoblast $2.41 million 203.97 -$76.81 million ($0.82) -7.00

Eiger Biopharmaceuticals has higher earnings, but lower revenue than Mesoblast. Mesoblast is trading at a lower price-to-earnings ratio than Eiger Biopharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Eiger Biopharmaceuticals and Mesoblast, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eiger Biopharmaceuticals 0 0 7 0 3.00
Mesoblast 0 2 4 0 2.67

Eiger Biopharmaceuticals presently has a consensus price target of $32.86, suggesting a potential upside of 147.05%. Mesoblast has a consensus price target of $14.25, suggesting a potential upside of 148.26%. Given Mesoblast’s higher probable upside, analysts plainly believe Mesoblast is more favorable than Eiger Biopharmaceuticals.

Profitability

This table compares Eiger Biopharmaceuticals and Mesoblast’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Eiger Biopharmaceuticals N/A -169.16% -95.71%
Mesoblast -2,006.86% -12.04% -9.60%

Risk and Volatility

Eiger Biopharmaceuticals has a beta of 2.54, suggesting that its share price is 154% more volatile than the S&P 500. Comparatively, Mesoblast has a beta of 2.44, suggesting that its share price is 144% more volatile than the S&P 500.

Summary

Eiger Biopharmaceuticals beats Mesoblast on 8 of the 13 factors compared between the two stocks.

About Eiger Biopharmaceuticals

Eiger BioPharmaceuticals, Inc., formerly Celladon Corporation, is a clinical-stage biopharmaceutical company. The Company is focused on the development and commercialization of products for the treatment of orphan diseases. Its pipeline includes Sarasar (lonafarnib) for hepatitis delta virus (HDV), exendin (9-39) for severe hypoglycemia, and Bestatin (ubenimex) for pulmonary arterial hypertension (PAH) and lymphedema. Lonafarnib is an orally active inhibitor of farnesyl transferase that inhibits the prenylation step of HDV replication inside liver cells and blocks the ability of the virus to multiply. It is conducting over three Phase II clinical trials, which include LOnafarnib With and without Ritonavir (LOWR) HDV-2 (Ankara, Turkey), LOWR HDV-3 (NIH) and LOWR HDV-4 (Hannover, Germany). Exendin is in Phase II clinical studies for the treatment of hypoglycemia associated with bariatric surgery. Ubenimex is in Phase II clinical studies for the treatment of PAH and lymphedema.

About Mesoblast

Mesoblast Limited is engaged in developing cell-based medicines. The Company has leveraged its technology platform, which is based on specialized cells known as mesenchymal lineage adult stem cells, to establish a portfolio of late-stage product candidates. Its allogeneic, off-the-shelf cell product candidates target advanced stages of diseases with high, unmet medical needs, including cardiovascular conditions, orthopedic disorders, immunologic and inflammatory disorders and oncologic/hematologic conditions.

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