Critical Analysis: Egalet Corporation (EGLT) & Spark Therapeutics (ONCE)
Egalet Corporation (NASDAQ: EGLT) and Spark Therapeutics (NASDAQ:ONCE) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.
This table compares Egalet Corporation and Spark Therapeutics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
32.6% of Egalet Corporation shares are held by institutional investors. Comparatively, 91.0% of Spark Therapeutics shares are held by institutional investors. 3.8% of Egalet Corporation shares are held by insiders. Comparatively, 7.3% of Spark Therapeutics shares are held by 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.
Volatility & Risk
Egalet Corporation has a beta of 0.29, indicating that its stock price is 71% less volatile than the S&P 500. Comparatively, Spark Therapeutics has a beta of 3.38, indicating that its stock price is 238% more volatile than the S&P 500.
Valuation & Earnings
This table compares Egalet Corporation and Spark Therapeutics’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Egalet Corporation||$22.53 million||1.63||-$79.77 million||($4.03)||-0.35|
|Spark Therapeutics||$20.36 million||126.20||-$165.64 million||($6.39)||-12.87|
Egalet Corporation has higher revenue and earnings than Spark Therapeutics. Spark Therapeutics is trading at a lower price-to-earnings ratio than Egalet Corporation, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations for Egalet Corporation and Spark Therapeutics, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Egalet Corporation currently has a consensus target price of $7.10, suggesting a potential upside of 407.14%. Spark Therapeutics has a consensus target price of $86.17, suggesting a potential upside of 4.80%. Given Egalet Corporation’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Egalet Corporation is more favorable than Spark Therapeutics.
Spark Therapeutics beats Egalet Corporation on 7 of the 13 factors compared between the two stocks.
Egalet Corporation Company Profile
Egalet Corporation is a specialty pharmaceutical company. The Company is engaged in developing, manufacturing and commercializing treatments for pain and other conditions. The Company’s products include OXAYDO and SPRIX Nasal Spray. The Company is developing two late-stage product candidates, ARYMO ER and Egalet-002 using Guardian Technology. The Company’s product SPRIX Nasal Spray, which contains ketorolac tromethamine is a non-steroidal anti-inflammatory drug (NSAID) indicated in adult patients for the short-term management of moderate to moderately severe pain that requires analgesia at the opioid level. The Company’s product OXAYDO is an approved immediate-release (IR) oxycodone product formulated to deter abuse through snorting. The Company’s product candidate, ARYMO ER is an abuse-deterrent (AD), extended-release (ER), oral morphine formulation. The Company’s product candidate, Egalet-002, is an abuse-deterrent, extended-release, oral oxycodone formulation.
Spark Therapeutics Company Profile
Spark Therapeutics, Inc. is a gene therapy company. The Company focuses on treating orphan diseases. It has a pipeline of product candidates targeting multiple rare blinding conditions, hematologic disorders and neurodegenerative diseases. Its pipeline includes a product candidate targeting choroideremia (CHM), which is in a Phase I/II clinical trial and a product candidate for hemophilia A, which is in a Phase I/II clinical trial. Its product investigational candidate, voretigene neparvovec, is intended to treat a genetic blinding condition or inherited retinal disease (IRD). The programs targeting hematologic disorders include SPK-FIX, for which the lead product candidate, SPK-9001, is in a Phase I/II clinical trial for the treatment of hemophilia B, as well as SPK-FVIII for the treatment of hemophilia A. In its SPK-FVIII program for the treatment of hemophilia A, the Company has initiated a dose-escalating Phase I/II clinical trial for its lead product candidate, SPK-8011.
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