PolarityTE (NASDAQ:PTE) and Eiger BioPharmaceuticals (NASDAQ:EIGR) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.
Insider and Institutional Ownership
16.5% of PolarityTE shares are held by institutional investors. Comparatively, 68.8% of Eiger BioPharmaceuticals shares are held by institutional investors. 5.5% of PolarityTE shares are held by company insiders. Comparatively, 5.8% of Eiger BioPharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares PolarityTE and Eiger BioPharmaceuticals' revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
PolarityTE | $5.65 million | 13.62 | $-92,490,000.00 | ($3.70) | -0.35 |
Eiger BioPharmaceuticals | N/A | N/A | $-70,250,000.00 | ($3.08) | -2.93 |
Eiger BioPharmaceuticals has lower revenue, but higher earnings than PolarityTE. Eiger BioPharmaceuticals is trading at a lower price-to-earnings ratio than PolarityTE, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent recommendations and price targets for PolarityTE and Eiger BioPharmaceuticals, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
PolarityTE | 0 | 2 | 2 | 0 | 2.50 |
Eiger BioPharmaceuticals | 0 | 0 | 2 | 0 | 3.00 |
PolarityTE currently has a consensus price target of $4.00, indicating a potential upside of 214.96%. Eiger BioPharmaceuticals has a consensus price target of $25.00, indicating a potential upside of 176.85%. Given PolarityTE's higher possible upside, equities analysts clearly believe PolarityTE is more favorable than Eiger BioPharmaceuticals.
Risk & Volatility
PolarityTE has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500. Comparatively, Eiger BioPharmaceuticals has a beta of 1.54, meaning that its share price is 54% more volatile than the S&P 500.
Profitability
This table compares PolarityTE and Eiger BioPharmaceuticals' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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PolarityTE | -674.12% | -169.92% | -105.62% |
Eiger BioPharmaceuticals | N/A | -100.60% | -57.76% |
Summary
Eiger BioPharmaceuticals beats PolarityTE on 9 of the 12 factors compared between the two stocks.