ESSA Pharma (NASDAQ:EPIX) & Eli Lilly and Company (NYSE:LLY) Critical Review

ESSA Pharma (NASDAQ:EPIXGet Free Report) and Eli Lilly and Company (NYSE:LLYGet Free Report) are both medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, earnings, profitability and analyst recommendations.

Insider and Institutional Ownership

75.1% of ESSA Pharma shares are owned by institutional investors. Comparatively, 82.5% of Eli Lilly and Company shares are owned by institutional investors. 14.7% of ESSA Pharma shares are owned by company insiders. Comparatively, 0.1% of Eli Lilly and Company shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations for ESSA Pharma and Eli Lilly and Company, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ESSA Pharma 0 0 2 0 3.00
Eli Lilly and Company 0 3 16 0 2.84

ESSA Pharma presently has a consensus price target of $16.50, indicating a potential upside of 126.03%. Eli Lilly and Company has a consensus price target of $728.05, indicating a potential downside of 3.08%. Given ESSA Pharma’s stronger consensus rating and higher possible upside, equities analysts clearly believe ESSA Pharma is more favorable than Eli Lilly and Company.

Profitability

This table compares ESSA Pharma and Eli Lilly and Company’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ESSA Pharma N/A -17.41% -17.04%
Eli Lilly and Company 15.36% 51.22% 9.94%

Valuation & Earnings

This table compares ESSA Pharma and Eli Lilly and Company’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ESSA Pharma N/A N/A -$26.58 million ($0.59) -12.37
Eli Lilly and Company $34.12 billion 20.92 $5.24 billion $5.80 129.52

Eli Lilly and Company has higher revenue and earnings than ESSA Pharma. ESSA Pharma is trading at a lower price-to-earnings ratio than Eli Lilly and Company, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

ESSA Pharma has a beta of 1.62, suggesting that its stock price is 62% more volatile than the S&P 500. Comparatively, Eli Lilly and Company has a beta of 0.34, suggesting that its stock price is 66% less volatile than the S&P 500.

Summary

Eli Lilly and Company beats ESSA Pharma on 9 of the 13 factors compared between the two stocks.

About ESSA Pharma

(Get Free Report)

ESSA Pharma Inc., a clinical stage pharmaceutical company, focuses the development of small molecule drugs for the treatment of prostate cancer. The company's lead candidate EPI-7386, an androgen receptor based resistance mechanisms that develop in patients with castration-resistant prostate cancer and metastatic castration-resistant prostate cancer. It has collaboration agreements with Bayer Consumer Care AG; Janssen Research & Development, LLC; and Astellas Pharma Inc. ESSA Pharma Inc. was incorporated in 2009 and is headquartered in Vancouver, Canada.

About Eli Lilly and Company

(Get Free Report)

Eli Lilly and Company discovers, develops, and markets human pharmaceuticals worldwide. The company offers Basaglar, Humalog, Humalog Mix 75/25, Humalog U-100, Humalog U-200, Humalog Mix 50/50, insulin lispro, insulin lispro protamine, insulin lispro mix 75/25, Humulin, Humulin 70/30, Humulin N, Humulin R, and Humulin U-500 for diabetes; Jardiance, Mounjaro, and Trulicity for type 2 diabetes; and Zepbound for obesity. It also provides oncology products, including Alimta, Cyramza, Erbitux, Jaypirca, Retevmo, Tyvyt, and Verzenio. In addition, the company offers Olumiant for rheumatoid arthritis, atopic dermatitis, severe alopecia areata, and COVID-19; Taltz for plaque psoriasis, psoriatic arthritis, ankylosing spondylitis, and non-radiographic axial spondylarthritis; Omvoh for ulcerative colitis; Cymbalta for depressive disorder, diabetic peripheral neuropathic pain, generalized anxiety disorder, fibromyalgia, and chronic musculoskeletal pain; Ebglyss for severe atopic dermatitis; and Emgality for migraine prevention and episodic cluster headache. Further, it provides Cialis for erectile dysfunction and benign prostatic hyperplasia; and Forteo for osteoporosis. It has collaborations with Incyte Corporation; Boehringer Ingelheim Pharmaceuticals, Inc.; F. Hoffmann-La Roche Ltd and Genentech, Inc.; Biologics, Inc., AbCellera Biologics Inc.; and Chugai Pharmaceutical Co., Ltd. The company was founded in 1876 and is headquartered in Indianapolis, Indiana.

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