Supernus Pharmaceuticals (NASDAQ: SUPN) and Eagle Pharmaceuticals (NASDAQ:EGRX) are both medical companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Analyst Recommendations

This is a breakdown of current ratings for Supernus Pharmaceuticals and Eagle Pharmaceuticals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Supernus Pharmaceuticals 0 3 3 0 2.50
Eagle Pharmaceuticals 1 0 3 0 2.50

Supernus Pharmaceuticals currently has a consensus price target of $47.50, suggesting a potential upside of 13.77%. Eagle Pharmaceuticals has a consensus price target of $72.50, suggesting a potential upside of 21.24%. Given Eagle Pharmaceuticals’ higher probable upside, analysts plainly believe Eagle Pharmaceuticals is more favorable than Supernus Pharmaceuticals.

Valuation & Earnings

This table compares Supernus Pharmaceuticals and Eagle Pharmaceuticals’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Supernus Pharmaceuticals $252.59 million 8.38 $82.36 million $1.95 21.41
Eagle Pharmaceuticals $245.88 million 3.69 $83.99 million $5.95 10.05

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

Insider & Institutional Ownership

95.4% of Supernus Pharmaceuticals shares are held by institutional investors. 6.7% of Supernus Pharmaceuticals shares are held by company insiders. Comparatively, 19.5% of Eagle Pharmaceuticals 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.

Risk and Volatility

Supernus Pharmaceuticals has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500. Comparatively, Eagle Pharmaceuticals has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500.

Profitability

This table compares Supernus Pharmaceuticals and Eagle Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Supernus Pharmaceuticals 41.10% 30.73% 19.48%
Eagle Pharmaceuticals 39.32% 66.30% 48.44%

Summary

Eagle Pharmaceuticals beats Supernus Pharmaceuticals on 7 of the 12 factors compared between the two stocks.

Supernus Pharmaceuticals Company Profile

Supernus Pharmaceuticals, Inc. is a pharmaceutical company focused on developing and commercializing products for the treatment of central nervous system diseases. The Company offers Oxtellar XR (extended-release oxcarbazepine) and Trokendi XR (extended-release topiramate), its two treatments for patients with epilepsy. In addition, it is developing multiple product candidates in psychiatry to address unmet medical needs and market opportunities for the treatment of impulsive aggression (IA) and for the treatment of attention deficit hyperactivity disorder (ADHD). It is developing SPN-810 (molindone hydrochloride) to treat IA in patients having ADHD. It is developing SPN-812 (viloxazine hydrochloride) as a candidate to treat patients having ADHD. The Company’s neurology portfolio consists of Oxtellar XR and Trokendi XR, which are the first once-daily extended release oxcarbazepine and topiramate products, respectively, indicated for epilepsy in the United States market.

Eagle Pharmaceuticals Company Profile

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.

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