Horizon Pharma (HZNP) versus Emergent Biosolutions (NYSE:EBS) Head to Head Comparison

Horizon Pharma (NASDAQ: HZNP) and Emergent Biosolutions (NYSE:EBS) are both healthcare companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, valuation and dividends.

Profitability

This table compares Horizon Pharma and Emergent Biosolutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Horizon Pharma -45.28% 20.22% 5.35%
Emergent Biosolutions 15.60% 15.20% 9.67%

Earnings & Valuation

This table compares Horizon Pharma and Emergent Biosolutions’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Horizon Pharma $981.12 million 2.52 -$166.83 million ($3.04) -4.96
Emergent Biosolutions $488.78 million 3.98 $51.77 million $1.60 29.36

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

Volatility & Risk

Horizon Pharma has a beta of 1.3, suggesting that its stock price is 30% more volatile than the S&P 500. Comparatively, Emergent Biosolutions has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Horizon Pharma and Emergent Biosolutions, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Horizon Pharma 0 1 10 0 2.91
Emergent Biosolutions 0 0 2 0 3.00

Horizon Pharma presently has a consensus price target of $19.18, suggesting a potential upside of 27.12%. Emergent Biosolutions has a consensus price target of $45.00, suggesting a potential downside of 4.21%. Given Horizon Pharma’s higher probable upside, analysts clearly believe Horizon Pharma is more favorable than Emergent Biosolutions.

Insider and Institutional Ownership

86.6% of Horizon Pharma shares are owned by institutional investors. Comparatively, 88.4% of Emergent Biosolutions shares are owned by institutional investors. 3.2% of Horizon Pharma shares are owned by insiders. Comparatively, 16.5% of Emergent Biosolutions shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Emergent Biosolutions beats Horizon Pharma on 9 of the 14 factors compared between the two stocks.

About Horizon Pharma

Horizon Pharma Public Limited Company is a biopharmaceutical company. The Company is focused on identifying, developing, acquiring and commercializing differentiated and accessible medicines that address unmet medical needs. As of December 31, 2016, the Company marketed 11 medicines through its orphan, rheumatology and primary care business units. The Company’s marketed medicines are ACTIMMUNE (interferon gamma-1b), BUPHENYL (sodium phenylbutyrate) Tablets and Powder, DUEXIS (ibuprofen/famotidine), KRYSTEXXA (pegloticase), MIGERGOT (ergotamine tartrate & caffeine suppositories), PENNSAID (diclofenac sodium topical solution) 2% weight per weight (w/w), or PENNSAID 2%, PROCYSBI (cysteamine bitartrate) delayed-release capsules, QUINSAIR (aerosolized form of levofloxacin), RAVICTI (glycerol phenylbutyrate) Oral Liquid, RAYOS (prednisone) delayed-release tablets and VIMOVO (naproxen/esomeprazole magnesium).

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).

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