Emergent Biosolutions (NYSE:EBS) and IVERIC bio (NASDAQ:ISEE) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, analyst recommendations, institutional ownership, profitability and risk.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Emergent Biosolutions and IVERIC bio, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Emergent Biosolutions 0 2 4 0 2.67
IVERIC bio 0 0 0 0 N/A

Emergent Biosolutions currently has a consensus price target of $70.33, suggesting a potential upside of 59.31%. Given Emergent Biosolutions’ higher probable upside, research analysts clearly believe Emergent Biosolutions is more favorable than IVERIC bio.

Profitability

This table compares Emergent Biosolutions and IVERIC bio’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Emergent Biosolutions 4.88% 11.73% 6.84%
IVERIC bio N/A -94.05% -44.30%

Institutional & Insider Ownership

86.4% of Emergent Biosolutions shares are held by institutional investors. Comparatively, 40.6% of IVERIC bio shares are held by institutional investors. 14.1% of Emergent Biosolutions shares are held by company insiders. Comparatively, 4.3% of IVERIC bio shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

Emergent Biosolutions has a beta of 1.61, meaning that its stock price is 61% more volatile than the S&P 500. Comparatively, IVERIC bio has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500.

Earnings and Valuation

This table compares Emergent Biosolutions and IVERIC bio’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Emergent Biosolutions $782.40 million 2.90 $62.70 million $2.33 18.95
IVERIC bio $209.98 million 0.23 $63.09 million ($1.67) -0.69

IVERIC bio has lower revenue, but higher earnings than Emergent Biosolutions. IVERIC bio is trading at a lower price-to-earnings ratio than Emergent Biosolutions, indicating that it is currently the more affordable of the two stocks.

Summary

Emergent Biosolutions beats IVERIC bio on 12 of the 13 factors compared between the two stocks.

About Emergent Biosolutions

Emergent BioSolutions Inc., a life sciences company, focuses on the provision of specialty products for civilian and military populations that address accidental, intentional, and naturally occurring public health threats (PHTs). Its products address PHTs, including chemical, biological, radiological, nuclear, and explosives; emerging infectious diseases; travelers' diseases; and opioids. The company offers BioThrax, an anthrax vaccine; ACAM2000, a smallpox vaccine; Vaxchora, a cholera vaccine; and Vivotif, a typhoid vaccine. It also provides NARCAN for the emergency treatment of known or suspected opioid overdose; RSDL (Reactive Skin Decontamination Lotion Kit), a medical device to remove or neutralize chemical warfare agents from the skin; and Trobigard for intramuscular self-injection of atropine sulfate and obidoxime chloride. In addition, the company offers raxibacumab for the treatment and prophylaxis of inhalational anthrax; Anthrasil to treat inhalational anthrax; BAT (Botulism Antitoxin Heptavalent) for treating botulinum disease; and VIGIV (vaccinia immune globulin intravenous) that addresses complications from smallpox vaccination. Further, it provides NuThrax, an anthrax vaccine; CHIKUNGUNYA, a chikungunya virus-like particle vaccine; ADENOVIRUS 4/7, a live attenuated vaccine; rVSV-Lassa, a vaccine for prevention of Lassa fever; rVSV-Marburg, a vaccine for prevention of Marburg hemorrhagic fever; rVSV-Sudan, vaccine for prevention of Sudan hemorrhagic fever; rVSV-QUAD, a vaccine for prevention of hemorrhagic fever; and rVSV-Ebola, a vaccine for prevention of Ebola hemorrhagic fever. Additionally, the company offers FLU-IGIV to treat Influenza A infection in hospitalized patients; and ZIKV-IG, a prophylaxis for Zika infections, as well as contract manufacturing services to third-party customers. Emergent BioSolutions Inc. was founded in 1998 and is headquartered in Gaithersburg, Maryland.

About IVERIC bio

IVERIC bio, Inc., a biopharmaceutical company, develops novel therapies to treat ophthalmic diseases with a focus on age-related and orphan retinal diseases. The company is developing Zimura, an inhibitor of complement factor C5, which is in Phase IIb clinical trials for the treatment of geographic atrophy (GA), a late-stage form of dry age-related macular degeneration (AMD) characterized by retinal cell death and degeneration of tissue in the central portion of the retina known as the macula; and autosomal recessive Stargardt disease (STGD1), which is an orphan inherited retinal disease (IRD). It is also developing High temperature requirement A serine peptidase 1 protein (HtrA1) inhibitors for the treatment of GA secondary to dry AMD and other age-related retinal diseases, such as wet AMD and idiopathic polypoidal choroidal vasculopathy. The company has a license agreement with the University of Florida Research Foundation (UFRF) and the University of Pennsylvania for the development and commercialization of novel adeno-associated virus (AAV) gene therapy product candidate for the treatment of rhodopsin-mediated autosomal dominant retinitis pigmentosa (RHO-adRP); and Best disease and other bestrophinopathies. It also has a research agreement with the University of Massachusetts Medical School to utilize the minigene therapy approach to create AAV gene therapy product candidates targeting Leber Congenital Amaurosis type 10 and STGD1; and to evaluate various AAV gene delivery methods for potential application in the eye. The company was formerly known as Ophthotech Corporation and changed its name to IVERIC bio, Inc. in April 2019. IVERIC bio, Inc. was founded in 2007 and is headquartered in New York, New York.

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