Enanta Pharmaceuticals (NASDAQ:ENTA – Get Free Report) and Cumberland Pharmaceuticals (NASDAQ:CPIX – Get Free Report) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, profitability, risk, analyst recommendations, valuation, earnings and institutional ownership.
Institutional and Insider Ownership
95.0% of Enanta Pharmaceuticals shares are held by institutional investors. Comparatively, 15.5% of Cumberland Pharmaceuticals shares are held by institutional investors. 13.6% of Enanta Pharmaceuticals shares are held by company insiders. Comparatively, 43.3% of Cumberland Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares Enanta Pharmaceuticals and Cumberland Pharmaceuticals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Enanta Pharmaceuticals | -171.57% | -73.02% | -28.70% |
| Cumberland Pharmaceuticals | -29.54% | -9.50% | -3.19% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Enanta Pharmaceuticals | 1 | 0 | 3 | 1 | 2.80 |
| Cumberland Pharmaceuticals | 0 | 0 | 0 | 0 | 0.00 |
Enanta Pharmaceuticals currently has a consensus price target of $19.50, suggesting a potential upside of 126.74%. Given Enanta Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts plainly believe Enanta Pharmaceuticals is more favorable than Cumberland Pharmaceuticals.
Valuation and Earnings
This table compares Enanta Pharmaceuticals and Cumberland Pharmaceuticals”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Enanta Pharmaceuticals | $67.64 million | 2.69 | -$133.82 million | ($5.48) | -1.57 |
| Cumberland Pharmaceuticals | $39.55 million | 0.50 | -$6.28 million | ($0.77) | -1.82 |
Cumberland Pharmaceuticals has lower revenue, but higher earnings than Enanta Pharmaceuticals. Cumberland Pharmaceuticals is trading at a lower price-to-earnings ratio than Enanta Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Enanta Pharmaceuticals has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500. Comparatively, Cumberland Pharmaceuticals has a beta of 0.22, meaning that its share price is 78% less volatile than the S&P 500.
Summary
Enanta Pharmaceuticals beats Cumberland Pharmaceuticals on 9 of the 15 factors compared between the two stocks.
About Enanta Pharmaceuticals
Enanta Pharmaceuticals, Inc., a biotechnology company, discovers and develops small molecule drugs for the treatment of viral infections and liver diseases. Its product pipeline comprises EDP-514, which is in phase 1b clinical development for the treatment of chronic infection with hepatitis B virus or HBV; EDP-938 and EDP-323, which is in phase II clinical development for the treatment of respiratory syncytial virus; EDP-235, which is in phase II clinical development for the treatment of human coronaviruses; and Glecaprevir, which is in the market for the treatment of chronic infection with hepatitis C virus or HCV. The company has a collaborative development and license agreement with Abbott Laboratories to develop, manufacture, and commercialize HCV NS3 and NS3/4A protease inhibitor compounds, including paritaprevir and glecaprevir. Enanta Pharmaceuticals, Inc. was incorporated in 1995 and is headquartered in Watertown, Massachusetts.
About Cumberland Pharmaceuticals
Cumberland Pharmaceuticals Inc., a specialty pharmaceutical company, focuses on the acquisition, development, and commercialization of prescription products for hospital acute care, gastroenterology, and oncology in the United States and internationally. The company offers Acetadote, an injection for the treatment of acetaminophen poisoning; Caldolor, an injection for the treatment of pain and fever; Kristalose, a prescription laxative oral solution for the treatment of constipation; Omeclamox-Pak for the treatment of Helicobacter pylori infection and duodenal ulcer disease; Vaprisol, an injection for treating euvolemic and hypervolemic hyponatremia; Sancuso, an injection for the treatment of chemotherapy treatment; and Vibativ, an injection for the treatment of certain serious bacterial infections, including hospital-acquired and ventilator-associated bacterial pneumonia, as well as complicated skin and skin structure infections. It develops RediTrex injection for the treatment of active rheumatoid, juvenile idiopathic, and severe psoriatic arthritis, as well as disabling psoriasis. In addition, the company is developing ifetroban, a product candidate that is in phase II clinical trial for the treatment of aspirin-exacerbated respiratory disease, systemic sclerosis, and duchenne muscular dystrophy; and has completed phase II clinical trial for the treatment of hepatorenal syndrome and portal hypertension. Further, it develops a clinical program for the use of ifetroban to treat progressive fibrosing interstitial lung diseases. The company was incorporated in 1999 and is headquartered in Nashville, Tennessee.
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