Eyegate Pharmaceuticals (NASDAQ: EYEG) and Innoviva (NASDAQ:INVA) are both small-cap healthcare companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, dividends, analyst recommendations, profitability, risk, institutional ownership and valuation.

Valuation & Earnings

This table compares Eyegate Pharmaceuticals and Innoviva’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Eyegate Pharmaceuticals $670,000.00 16.94 -$13.34 million ($1.17) -0.56
Innoviva $217.22 million 8.30 $134.14 million $1.12 14.90

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Eyegate Pharmaceuticals and Innoviva, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eyegate Pharmaceuticals 0 0 2 0 3.00
Innoviva 1 3 1 0 2.00

Eyegate Pharmaceuticals currently has a consensus target price of $3.00, indicating a potential upside of 354.55%. Innoviva has a consensus target price of $13.40, indicating a potential downside of 19.71%. Given Eyegate Pharmaceuticals’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Eyegate Pharmaceuticals is more favorable than Innoviva.

Profitability

This table compares Eyegate Pharmaceuticals and Innoviva’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Eyegate Pharmaceuticals -2,480.28% -1,494.75% -100.47%
Innoviva 61.76% -48.93% 35.25%

Insider and Institutional Ownership

11.9% of Eyegate Pharmaceuticals shares are held by institutional investors. Comparatively, 74.2% of Innoviva shares are held by institutional investors. 24.6% of Eyegate Pharmaceuticals shares are held by company insiders. Comparatively, 1.6% of Innoviva shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Innoviva beats Eyegate Pharmaceuticals on 8 of the 13 factors compared between the two stocks.

Eyegate Pharmaceuticals Company Profile

Eyegate Pharmaceuticals, Inc. is a clinical-stage specialty pharmaceutical company. The Company is focused on developing and commercializing therapeutics and drug delivery systems for treating diseases of the eye. The Company’s lead product, EGP-437, incorporates a reformulated topically active corticosteroid, dexamethasone phosphate, which is delivered into the ocular tissues through its drug delivery system, the EyeGate II Delivery System. The Company is developing EGP-437 for the treatment of various inflammatory conditions of the eye, including uveitis, a debilitating form of intraocular inflammation of the anterior portion of the uvea, such as the iris and/or ciliary body, and macular edema, an abnormal thickening of the macula associated with the accumulation of excess fluids in the extracellular space of the neurosensory retina. The EyeGate II Delivery System is designed to deliver optimal quantities of drugs to the anterior or posterior segments of the eye.

Innoviva Company Profile

Innoviva, Inc., formerly Theravance, Inc., is engaged in the development, commercialization and financial management of bio-pharmaceuticals. It focuses on the respiratory assets partnered with Glaxo Group Limited (GSK), including RELVAR/BREO ELLIPTA (fluticasone furoate (FF)/vilanterol (VI)) and ANORO ELLIPTA (umeclidinium bromide/vilanterol (UMEC/VI)). Under the Long-Acting Beta2 Agonist (LABA) Collaboration Agreement and the Strategic Alliance Agreement with GSK, the Company is eligible to receive the annual royalties from GSK on sales of RELVAR/BREO ELLIPTA. For other products combined with a LABA from the LABA collaboration, such as ANORO ELLIPTA, royalties are upward tiering and range from 6.5% to 10%. RELVAR/BREO is a once-a-day combination inhaled respiratory medicine consisting of a LABA (VI) and an inhaled corticosteroid (ICS), FF. ANORO ELLIPTA a once-daily medicine combining a long-acting muscarinic antagonist (LAMA), umeclidinium bromide (UMEC), with a LABA.

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