Aileron Therapeutics (NASDAQ:ALRN) & Eagle Pharmaceuticals (NASDAQ:EGRX) Head to Head Contrast

Eagle Pharmaceuticals (NASDAQ:EGRXGet Free Report) and Aileron Therapeutics (NASDAQ:ALRNGet Free Report) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Profitability

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

Net Margins Return on Equity Return on Assets
Eagle Pharmaceuticals N/A N/A N/A
Aileron Therapeutics N/A -95.55% -31.15%

Insider and Institutional Ownership

85.4% of Eagle Pharmaceuticals shares are held by institutional investors. Comparatively, 90.9% of Aileron Therapeutics shares are held by institutional investors. 28.9% of Eagle Pharmaceuticals shares are held by company insiders. Comparatively, 5.6% of Aileron Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Eagle Pharmaceuticals has a beta of 0.45, suggesting that its stock price is 55% less volatile than the S&P 500. Comparatively, Aileron Therapeutics has a beta of 2.11, suggesting that its stock price is 111% more volatile than the S&P 500.

Earnings and Valuation

This table compares Eagle Pharmaceuticals and Aileron Therapeutics’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Eagle Pharmaceuticals $316.61 million 0.16 $35.64 million $1.18 3.39
Aileron Therapeutics N/A N/A -$15.73 million ($3.19) -1.03

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for Eagle Pharmaceuticals and Aileron Therapeutics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eagle Pharmaceuticals 1 0 0 0 1.00
Aileron Therapeutics 0 0 1 1 3.50

Eagle Pharmaceuticals presently has a consensus price target of $17.00, indicating a potential upside of 325.00%. Aileron Therapeutics has a consensus price target of $19.00, indicating a potential upside of 475.76%. Given Aileron Therapeutics’ stronger consensus rating and higher possible upside, analysts plainly believe Aileron Therapeutics is more favorable than Eagle Pharmaceuticals.

Summary

Eagle Pharmaceuticals beats Aileron Therapeutics on 7 of the 13 factors compared between the two stocks.

About Eagle Pharmaceuticals

(Get Free Report)

Eagle Pharmaceuticals, Inc., a pharmaceutical company, focuses on developing and commercializing product candidates to treat diseases of the central nervous system or metabolic critical care, and oncology in the United States. The company offers Ryanodex for malignant hyperthermia; and Belrapzo and Bendeka for chronic lymphocytic leukemia and indolent B-cell non-Hodgkin's lymphoma. Its product candidates also include EP-4104, a dantrolene sodium to treat organophosphate exposure; PEMFEXY, a ready-to-use/dilute liquid form of pemetrexed for non-small cell lung cancer and mesothelioma; EA-114 (fulvestrant) for HR+/HER- breast cancer; and Vasopressin injection, which is indicated to enhance blood pressure in adults with vasodilatory shock. The company has license and collaboration agreements with Combioxin, SA for the development and commercialization rights to CAL02, an antitoxin agent for the treatment of severe pneumonia in combination with traditional antibacterial drugs; and AOP Orphan Pharmaceuticals GmbH for the commercial rights of Landiolol, a novel therapeutic product candidate for the short-term reduction of ventricular rate in patients with supraventricular tachycardia, including atrial fibrillation and atrial flutter. It has a strategic collaboration with Tyme Technologies, Inc. for the development of SM-88 to treat breast cancer (HR+/HER2-) and high-risk metastatic sarcomas. Eagle Pharmaceuticals, Inc. was incorporated in 2007 and is headquartered in Woodcliff Lake, New Jersey.

About Aileron Therapeutics

(Get Free Report)

Aileron Therapeutics, Inc., a biopharmaceutical company, focuses on developing medicines to address unmet medical needs in orphan pulmonary and fibrosis indications in the United States. The company's lead product candidate is LTI-03, a peptide, which is in Phase 1b clinical trial for the treatment of idiopathic pulmonary fibrosis (IPF). Its second product candidate is LTI-01, a proenzyme that has completed Phase 1b and Phase 2a clinical trials in LPE patients for the treatment of loculated pleural effusion. The company's pipeline also includes preclinical programs targeting cystic fibrosis and a peptide program focused on the caveolin-1 protein for systemic fibrosis indications. The company was formerly known as Renegade Therapeutics, Inc. and changed its name to Aileron Therapeutics, Inc. in February 2007. Aileron Therapeutics, Inc. was incorporated in 2001 and is headquartered in Austin, Texas.

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