Pulmatrix (NASDAQ:PULM – Get Free Report) and Emergent BioSolutions (NYSE:EBS – Get Free Report) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.
Profitability
This table compares Pulmatrix and Emergent BioSolutions’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Pulmatrix | -95.18% | -46.86% | -28.14% |
Emergent BioSolutions | -53.26% | -34.38% | -11.71% |
Insider and Institutional Ownership
11.8% of Pulmatrix shares are held by institutional investors. Comparatively, 78.4% of Emergent BioSolutions shares are held by institutional investors. 3.6% of Pulmatrix shares are held by company insiders. Comparatively, 1.2% of Emergent BioSolutions shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Earnings & Valuation
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Pulmatrix | $7.30 million | 1.05 | -$14.12 million | ($2.41) | -0.87 |
Emergent BioSolutions | $1.07 billion | 0.44 | -$760.50 million | ($11.01) | -0.81 |
Pulmatrix has higher earnings, but lower revenue than Emergent BioSolutions. Pulmatrix 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 summary of recent ratings and recommmendations for Pulmatrix and Emergent BioSolutions, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Pulmatrix | 0 | 0 | 0 | 0 | N/A |
Emergent BioSolutions | 1 | 0 | 2 | 0 | 2.33 |
Emergent BioSolutions has a consensus price target of $12.00, indicating a potential upside of 34.08%. Given Emergent BioSolutions’ higher probable upside, analysts clearly believe Emergent BioSolutions is more favorable than Pulmatrix.
Risk and Volatility
Pulmatrix has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500. Comparatively, Emergent BioSolutions has a beta of 1.6, suggesting that its share price is 60% more volatile than the S&P 500.
Summary
Emergent BioSolutions beats Pulmatrix on 9 of the 13 factors compared between the two stocks.
About Pulmatrix
Pulmatrix, Inc., a clinical stage biotechnology company, focused on development of novel inhaled therapeutic products to prevent and treat respiratory and other diseases with unmet medical needs in the United States. The company offers iSPERSE, an engineered dry powder delivery platform, which enables delivery of small or large molecule drugs to the lungs by inhalation for local or systemic applications. It engages in developing PUR1800, a narrow spectrum kinase inhibitor completed Phase 1b clinical trials for the treatment of acute exacerbations in chronic obstructive pulmonary disease; PUR1900 for the treatment of allergic bronchopulmonary aspergillosis in patients with asthma and cystic fibrosis; and PUR3100, an iSPERSE formulation of dihydroergotamine which is in Phase 1 for the treatment of acute migraine. It has a license agreement with RespiVert Ltd. for access to a portfolio of kinase inhibitor drug candidates. The company was founded in 2003 and is headquartered in Bedford, Massachusetts.
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.
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