Eagle Pharmaceuticals (NASDAQ: EGRX) and AbbVie (NYSE:ABBV) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.
This is a breakdown of recent recommendations and price targets for Eagle Pharmaceuticals and AbbVie, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Eagle Pharmaceuticals currently has a consensus price target of $72.50, suggesting a potential upside of 25.82%. AbbVie has a consensus price target of $83.75, suggesting a potential downside of 4.26%. Given Eagle Pharmaceuticals’ higher probable upside, equities research analysts clearly believe Eagle Pharmaceuticals is more favorable than AbbVie.
Volatility & Risk
Eagle Pharmaceuticals has a beta of 1.3, meaning that its stock price is 30% more volatile than the S&P 500. Comparatively, AbbVie has a beta of 1.48, meaning that its stock price is 48% more volatile than the S&P 500.
This table compares Eagle Pharmaceuticals and AbbVie’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
68.3% of AbbVie shares are owned by institutional investors. 19.5% of Eagle Pharmaceuticals shares are owned by company insiders. Comparatively, 0.2% of AbbVie shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
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 and Valuation
This table compares Eagle Pharmaceuticals and AbbVie’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Eagle Pharmaceuticals||$245.88 million||3.55||$83.99 million||$5.95||9.68|
|AbbVie||$26.71 billion||5.22||$11.57 billion||$4.07||21.49|
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.
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.
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).
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