Critical Review: XOMA (NASDAQ:XOMAP) vs. Eiger BioPharmaceuticals (NASDAQ:EIGR)

Eiger BioPharmaceuticals (NASDAQ:EIGR) and XOMA (NASDAQ:XOMAP) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, risk, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

62.5% of Eiger BioPharmaceuticals shares are held by institutional investors. 4.2% of Eiger BioPharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Eiger BioPharmaceuticals and XOMA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eiger BioPharmaceuticals	-590.80%	-332.49%	-99.77%
XOMA	N/A	N/A	N/A

Earnings & Valuation

This table compares Eiger BioPharmaceuticals and XOMA’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eiger BioPharmaceuticals	$15.77 million	0.00	-$96.78 million	($59.16)	N/A
XOMA	$4.76 million	N/A	N/A	N/A	N/A

XOMA has lower revenue, but higher earnings than Eiger BioPharmaceuticals.

Analyst Ratings

This is a summary of recent ratings and target prices for Eiger BioPharmaceuticals and XOMA, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eiger BioPharmaceuticals	0	0	2	0	3.00
XOMA	0	0	0	0	N/A

Eiger BioPharmaceuticals currently has a consensus price target of $120.00, indicating a potential upside of ∞. Given Eiger BioPharmaceuticals’ higher possible upside, equities analysts plainly believe Eiger BioPharmaceuticals is more favorable than XOMA.

Summary

Eiger BioPharmaceuticals beats XOMA on 5 of the 8 factors compared between the two stocks.

About Eiger BioPharmaceuticals

Eiger BioPharmaceuticals, Inc., a commercial-stage biopharmaceutical company, focuses on the development and commercialization of targeted therapies for rare and ultra-rare diseases in the United States and internationally. Its lead product candidate is Lonafarnib, an orally bioavailable, small molecule, which is in Phase III clinical trials to treat hepatitis delta virus infection. The company's product candidate also include Lambda, which targets type III interferon receptors that has completed Phase II clinical trials; Lonafarnib for the treatment of progeria and progeroid laminopathies; and Avexitide for the treatment of congenital hyperinsulinism, as well as has completed Phase II clinical trials to treat post-bariatric hypoglycemia. Eiger BioPharmaceuticals, Inc. was founded in 2008 and is headquartered in Palo Alto, California.

About XOMA

XOMA Corporation operates as a biotech royalty aggregator in the United States and the Asia Pacific. It has a portfolio of economic rights to future potential milestone and royalty payments associated with partnered commercial and pre-commercial therapeutic candidates. The company also focuses on early to mid-stage clinical assets primarily in Phase 1 and 2 with commercial sales potential that are licensed to partners; and acquires milestone and royalty revenue streams on late-stage clinical or commercial assets. It has a portfolio with various assets. XOMA Corporation was incorporated in 1981 and is headquartered in Emeryville, California.