Head to Head Contrast: Verona Pharma (NASDAQ:VRNA) and Eagle Pharmaceuticals (NASDAQ:EGRX)

Verona Pharma (NASDAQ:VRNAGet Free Report) and Eagle Pharmaceuticals (NASDAQ:EGRXGet Free Report) are both small-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, dividends, earnings, risk and profitability.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Verona Pharma and Eagle Pharmaceuticals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Verona Pharma 0 0 3 0 3.00
Eagle Pharmaceuticals 1 0 0 0 1.00

Verona Pharma currently has a consensus target price of $32.60, suggesting a potential upside of 89.53%. Eagle Pharmaceuticals has a consensus target price of $17.00, suggesting a potential upside of 203.57%. Given Eagle Pharmaceuticals’ higher probable upside, analysts plainly believe Eagle Pharmaceuticals is more favorable than Verona Pharma.

Institutional & Insider Ownership

9.9% of Verona Pharma shares are held by institutional investors. Comparatively, 82.9% of Eagle Pharmaceuticals shares are held by institutional investors. 3.9% of Verona Pharma shares are held by insiders. Comparatively, 28.9% of Eagle Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk & Volatility

Verona Pharma has a beta of 0.44, meaning that its share price is 56% less volatile than the S&P 500. Comparatively, Eagle Pharmaceuticals has a beta of 0.44, meaning that its share price is 56% less volatile than the S&P 500.

Earnings & Valuation

This table compares Verona Pharma and Eagle Pharmaceuticals’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Verona Pharma $458,000.00 2,839.88 -$68.70 million ($0.69) -24.93
Eagle Pharmaceuticals $316.61 million 0.23 $35.64 million $1.18 4.75

Eagle Pharmaceuticals has higher revenue and earnings than Verona Pharma. Verona Pharma 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 Verona Pharma and Eagle Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Verona Pharma N/A -19.42% -17.20%
Eagle Pharmaceuticals 6.04% 6.48% 3.86%

Summary

Eagle Pharmaceuticals beats Verona Pharma on 10 of the 13 factors compared between the two stocks.

About Verona Pharma

(Get Free Report)

Verona Pharma plc, a clinical stage biopharmaceutical company, focuses on development and commercialization of therapies for the treatment of respiratory diseases with unmet medical needs. The company's product candidate is ensifentrine, an inhaled and dual inhibitor of the phosphodiesterase (PDE) 3 and PDE4 enzymes that acts as both a bronchodilator and an anti-inflammatory agent in a single compound, which is in Phase 3 clinical trials for the treatment of chronic obstructive pulmonary disease, asthma, and cystic fibrosis. It is developing ensifentrine in three formulations, including nebulizer, dry powder inhaler, and pressurized metered-dose inhaler. Verona Pharma plc was incorporated in 2005 and is headquartered in London, the United Kingdom.

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.

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