Contrasting Enanta Pharmaceuticals (ENTA) and Biohaven Pharmaceutical (BHVN)

Enanta Pharmaceuticals (NASDAQ: ENTA) and Biohaven Pharmaceutical (NYSE:BHVN) are both small-cap healthcare companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, valuation, dividends, risk, profitability and institutional ownership.

Profitability

This table compares Enanta Pharmaceuticals and Biohaven Pharmaceutical’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Enanta Pharmaceuticals 17.23% 6.46% 6.11%
Biohaven Pharmaceutical N/A N/A N/A

Valuation & Earnings

This table compares Enanta Pharmaceuticals and Biohaven Pharmaceutical’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Enanta Pharmaceuticals $102.81 million 11.21 $17.71 million $0.80 75.34
Biohaven Pharmaceutical N/A N/A -$63.67 million ($5.22) -5.01

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

Analyst Recommendations

This is a breakdown of recent ratings for Enanta Pharmaceuticals and Biohaven Pharmaceutical, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enanta Pharmaceuticals 0 2 2 0 2.50
Biohaven Pharmaceutical 0 0 6 0 3.00

Enanta Pharmaceuticals presently has a consensus target price of $45.25, indicating a potential downside of 24.92%. Biohaven Pharmaceutical has a consensus target price of $38.00, indicating a potential upside of 45.43%. Given Biohaven Pharmaceutical’s stronger consensus rating and higher possible upside, analysts clearly believe Biohaven Pharmaceutical is more favorable than Enanta Pharmaceuticals.

Institutional & Insider Ownership

66.8% of Enanta Pharmaceuticals shares are held by institutional investors. Comparatively, 47.8% of Biohaven Pharmaceutical shares are held by institutional investors. 9.3% of Enanta Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Enanta Pharmaceuticals beats Biohaven Pharmaceutical on 9 of the 12 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.

Biohaven Pharmaceutical Company Profile

Biohaven Pharmaceutical Holding Company Ltd. is a United States-based biopharmaceutical company. The Company is engaged in the identification and development of clinical-stage compounds targeting orphan neurologic indications and other neurological pathways. It has a portfolio of multiple late-stage drug candidates. Its pipeline includes BHV-0223, which is a formulation of a glutamate-modulating agent; BHV-4157, which is a new chemical entity (NCE) that modulates glutamate, and BHV-5000, which is an in-licensed investigational agent of the Company targeting N-Methyl-D-Aspartate (NMDA) receptor antagonism. Its clinical compound, trigriluzole, is indicated for neurodegenerative diseases and cancer indications, among others. Its pipeline also includes BHV-3000 and BHV-3500, which are in-licensed by the Company for a neurologic indication. It focuses on advancing other mechanistic approaches in orphan and neuroscience indications, and is exploring licenses for additional compounds.

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