Eagle Pharmaceuticals (EGRX) versus Advanced Accelerator Applications (AAAP) Critical Analysis

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

Risk & Volatility

Eagle Pharmaceuticals has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500. Comparatively, Advanced Accelerator Applications has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500.

Insider and Institutional Ownership

42.0% of Advanced Accelerator Applications shares are held by institutional investors. 19.5% of Eagle Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for Eagle Pharmaceuticals and Advanced Accelerator Applications, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eagle Pharmaceuticals 1 0 3 0 2.50
Advanced Accelerator Applications 0 1 4 0 2.80

Eagle Pharmaceuticals currently has a consensus price target of $72.50, indicating a potential upside of 20.61%. Advanced Accelerator Applications has a consensus price target of $56.50, indicating a potential upside of 0.05%. Given Eagle Pharmaceuticals’ higher probable upside, equities analysts clearly believe Eagle Pharmaceuticals is more favorable than Advanced Accelerator Applications.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Eagle Pharmaceuticals $245.88 million 3.71 $83.99 million $5.95 10.10
Advanced Accelerator Applications $148.26 million 16.79 -$20.01 million ($0.88) -64.17

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

Profitability

This table compares Eagle Pharmaceuticals and Advanced Accelerator Applications’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Eagle Pharmaceuticals 39.32% 66.30% 48.44%
Advanced Accelerator Applications -33.83% -16.05% -11.18%

Summary

Eagle Pharmaceuticals beats Advanced Accelerator Applications on 9 of the 13 factors compared between the two stocks.

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.

Advanced Accelerator Applications Company Profile

Advanced Accelerator Applications S.A. is a radiopharmaceutical company. The Company develops, produces and commercializes molecular nuclear medicine (MNM), diagnostic and therapeutic products. MNM uses trace amounts of radioactive compounds to create functional images of organs and lesions and to treat diseases, such as cancer. The Company has a portfolio of nine diagnostic positron emission tomography (PET) and single-photon emission computed tomography (SPECT) products. PET and SPECT are imaging techniques in molecular nuclear diagnostics (MND) with applications in clinical oncology, cardiology, neurology and inflammatory/infectious diseases. Its commercial products include Gluscan/Gluscan 500/Barnascan, FluoroChol, MIBITEC/Adamibi, DOPAVIEW, Leukokit, Neurolite, SomaKit and NETSPOT. Additional MND product candidates include Annexin V-128, a SPECT product candidate for the imaging of apoptotic and necrotic lesions with potential applications in a range of indications.

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