Enanta Pharmaceuticals (NASDAQ: ENTA) and Nabriva Therapeutics AG (NASDAQ:NBRV) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, earnings, valuation and dividends.

Insider and Institutional Ownership

66.1% of Enanta Pharmaceuticals shares are owned by institutional investors. Comparatively, 68.6% of Nabriva Therapeutics AG shares are owned by institutional investors. 9.3% of Enanta Pharmaceuticals shares are owned by company insiders. Comparatively, 2.8% of Nabriva Therapeutics AG shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Enanta Pharmaceuticals has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500. Comparatively, Nabriva Therapeutics AG has a beta of 1.71, meaning that its share price is 71% more volatile than the S&P 500.

Valuation and Earnings

This table compares Enanta Pharmaceuticals and Nabriva Therapeutics AG’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Enanta Pharmaceuticals $39.73 million 20.50 -$30.75 million ($1.07) -39.87
Nabriva Therapeutics AG $6.01 million 39.12 -$59.30 million ($2.45) -3.58

Enanta Pharmaceuticals has higher revenue and earnings than Nabriva Therapeutics AG. Enanta Pharmaceuticals is trading at a lower price-to-earnings ratio than Nabriva Therapeutics AG, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Enanta Pharmaceuticals and Nabriva Therapeutics AG, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enanta Pharmaceuticals 0 1 2 0 2.67
Nabriva Therapeutics AG 0 0 7 0 3.00

Enanta Pharmaceuticals presently has a consensus price target of $38.00, indicating a potential downside of 10.92%. Nabriva Therapeutics AG has a consensus price target of $16.86, indicating a potential upside of 92.43%. Given Nabriva Therapeutics AG’s stronger consensus rating and higher possible upside, analysts plainly believe Nabriva Therapeutics AG is more favorable than Enanta Pharmaceuticals.

Profitability

This table compares Enanta Pharmaceuticals and Nabriva Therapeutics AG’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Enanta Pharmaceuticals -51.85% -7.74% -7.39%
Nabriva Therapeutics AG N/A -90.54% -72.82%

Summary

Nabriva Therapeutics AG beats Enanta Pharmaceuticals on 7 of the 13 factors compared between the two stocks.

Enanta Pharmaceuticals Company Profile

Enanta Pharmaceuticals, Inc. is a research and development-focused biotechnology company. The Company uses chemistry-driven approach and drug discovery solutions to create small molecule drugs for the treatment of viral infections and liver diseases. Its research and development programs are focused on three disease targets: non-alcoholic steatohepatitis (NASH)/ primary biliary cholangitis (PBC), respiratory syncytial virus (RSV) and hepatitis B virus (HBV). It has discovered novel protease inhibitors that are members of the direct-acting-antiviral (DAA) inhibitor classes designed for use against the hepatitis C virus (HCV). These protease inhibitors, developed through its collaboration with AbbVie Inc. (AbbVie), include paritaprevir and glecaprevir (ABT-493). Its product candidates also include EDP-305, which is a farnesoid X receptor (FXR) agonist product candidate for NASH and PBC, and EDP-938, which is a clinical candidate for RSV.

Nabriva Therapeutics AG Company Profile

Nabriva Therapeutics plc is a clinical stage biopharmaceutical company. The Company is engaged in engaged in the research and development of novel anti-infectives to treat serious infections, with a focus on the pleuromutilin class of antibiotics. The Company’s medicinal chemistry has enabled targeted discovery of novel pleuromutilins, including both intravenous and oral formulations of its lead product candidate, lefamulin. Lefamulin is a novel semi-synthetic pleuromutilin antibiotic with the potential to be the first-in-class available for systemic administration in humans. Lefamulin is being evaluated in two global, registrational Phase III clinical trials in patients with moderate to severe community-acquired bacterial pneumonia (CABP).It seeks to further pursue development of lefamulin for additional indications, including the treatment of acute bacterial skin and skin structure infections (ABSSSI), and is developing a formulation of lefamulin appropriate for pediatric use.

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