Eagle Pharmaceuticals (NASDAQ:EGRX) and Madrigal Pharmaceuticals (NASDAQ:MDGL) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, institutional ownership, risk, analyst recommendations, profitability, earnings and valuation.
Insider and Institutional Ownership
95.1% of Eagle Pharmaceuticals shares are held by institutional investors. Comparatively, 74.2% of Madrigal Pharmaceuticals shares are held by institutional investors. 21.1% of Eagle Pharmaceuticals shares are held by company insiders. Comparatively, 41.9% of Madrigal Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Eagle Pharmaceuticals and Madrigal Pharmaceuticals' top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Eagle Pharmaceuticals | $195.89 million | 2.99 | $14.31 million | $1.38 | 32.08 |
Madrigal Pharmaceuticals | N/A | N/A | $-83,950,000.00 | ($5.45) | -22.89 |
Eagle Pharmaceuticals has higher revenue and earnings than Madrigal Pharmaceuticals. Madrigal Pharmaceuticals is trading at a lower price-to-earnings ratio than Eagle Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Eagle Pharmaceuticals has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500. Comparatively, Madrigal Pharmaceuticals has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings for Eagle Pharmaceuticals and Madrigal Pharmaceuticals, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Eagle Pharmaceuticals | 0 | 1 | 0 | 0 | 2.00 |
Madrigal Pharmaceuticals | 0 | 3 | 7 | 0 | 2.70 |
Eagle Pharmaceuticals presently has a consensus price target of $46.00, suggesting a potential upside of 3.91%. Madrigal Pharmaceuticals has a consensus price target of $167.60, suggesting a potential upside of 34.33%. Given Madrigal Pharmaceuticals' stronger consensus rating and higher possible upside, analysts plainly believe Madrigal Pharmaceuticals is more favorable than Eagle Pharmaceuticals.
Profitability
This table compares Eagle Pharmaceuticals and Madrigal Pharmaceuticals' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Eagle Pharmaceuticals | 2.65% | 8.50% | 5.44% |
Madrigal Pharmaceuticals | N/A | -47.64% | -43.21% |
Summary
Eagle Pharmaceuticals beats Madrigal Pharmaceuticals on 8 of the 13 factors compared between the two stocks.