Enanta Pharmaceuticals (NASDAQ:ENTA) versus ReNeuron Group (OTCMKTS:RNUGF) Critical Review

Enanta Pharmaceuticals (NASDAQ:ENTA) and ReNeuron Group (OTCMKTS:RNUGF) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their risk, profitability, dividends, institutional ownership, valuation, earnings and analyst recommendations.

Profitability

This table compares Enanta Pharmaceuticals and ReNeuron Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Enanta Pharmaceuticals	-125.36%	-93.76%	-26.13%
ReNeuron Group	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Enanta Pharmaceuticals and ReNeuron Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Enanta Pharmaceuticals	1	0	6	0	2.71
ReNeuron Group	0	0	0	0	0.00

Enanta Pharmaceuticals presently has a consensus target price of $20.33, indicating a potential upside of 32.12%. Given Enanta Pharmaceuticals’ stronger consensus rating and higher possible upside, equities analysts clearly believe Enanta Pharmaceuticals is more favorable than ReNeuron Group.

Volatility and Risk

Enanta Pharmaceuticals has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500. Comparatively, ReNeuron Group has a beta of -0.62, indicating that its stock price is 162% less volatile than the S&P 500.

Valuation & Earnings

This table compares Enanta Pharmaceuticals and ReNeuron Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Enanta Pharmaceuticals	$65.32 million	6.80	-$81.89 million	($3.83)	-4.02
ReNeuron Group	$640,000.00	N/A	-$6.52 million	N/A	N/A

ReNeuron Group has lower revenue, but higher earnings than Enanta Pharmaceuticals.

Insider & Institutional Ownership

95.0% of Enanta Pharmaceuticals shares are held by institutional investors. 13.9% of Enanta Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Enanta Pharmaceuticals beats ReNeuron Group on 7 of the 11 factors compared between the two stocks.

About Enanta Pharmaceuticals

Enanta Pharmaceuticals, Inc., a biotechnology company, discovers and develops small molecule drugs for the treatment of viral infections and liver diseases. Its product pipeline comprises EDP-514, which is in phase 1b clinical development for the treatment of chronic infection with hepatitis B virus or HBV; EDP-938 and EDP-323, which is in phase II clinical development for the treatment of respiratory syncytial virus; EDP-235, which is in phase II clinical development for the treatment of human coronaviruses; and Glecaprevir, which is in the market for the treatment of chronic infection with hepatitis C virus or HCV. The company has a collaborative development and license agreement with Abbott Laboratories to develop, manufacture, and commercialize HCV NS3 and NS3/4A protease inhibitor compounds, including paritaprevir and glecaprevir. Enanta Pharmaceuticals, Inc. was incorporated in 1995 and is headquartered in Watertown, Massachusetts.

About ReNeuron Group

ReNeuron Group plc researches, develops, and commercializes cell-based therapies in the United Kingdom. The company engages in the development of CTX stem cell therapy candidate for treating stroke disability; and human retinal progenitor cell therapy that is in Phase 2 clinical trial for treating retinitis pigmentosa, a blindness-causing disease. It also develops CTX-derived exosomes that are in the pre-clinical stage, which are Nano-sized vesicles secreted by stem cells. In addition, the company licenses ReNcell products. It has a collaboration agreement with University College London to conduct research into the generation of immune cells from induced pluripotent stem cells for anti-cancer cell therapies. The company was founded in 1997 and is headquartered in Pencoed, the United Kingdom.