Lannett (NYSE: LCI) and Eyegate Pharmaceuticals (NASDAQ:EYEG) are both small-cap healthcare companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, profitability, valuation, dividends and risk.
This table compares Lannett and Eyegate Pharmaceuticals’ net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Institutional and Insider Ownership
99.3% of Lannett shares are owned by institutional investors. Comparatively, 11.9% of Eyegate Pharmaceuticals shares are owned by institutional investors. 14.7% of Lannett shares are owned by insiders. Comparatively, 24.6% of Eyegate Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Lannett and Eyegate Pharmaceuticals’ gross revenue, earnings per share (EPS) and valuation.
||Earnings Per Share
Lannett has higher revenue and earnings than Eyegate Pharmaceuticals. Eyegate Pharmaceuticals is trading at a lower price-to-earnings ratio than Lannett, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and target prices for Lannett and Eyegate Pharmaceuticals, as reported by MarketBeat.
||Strong Buy Ratings
Lannett presently has a consensus price target of $20.80, suggesting a potential upside of 21.99%. Eyegate Pharmaceuticals has a consensus price target of $3.00, suggesting a potential upside of 370.22%. Given Eyegate Pharmaceuticals’ stronger consensus rating and higher possible upside, analysts plainly believe Eyegate Pharmaceuticals is more favorable than Lannett.
Lannett beats Eyegate Pharmaceuticals on 8 of the 12 factors compared between the two stocks.
Lannett Company Profile
Lannett Company, Inc. develops, manufactures, markets and distributes generic versions of brand pharmaceutical products. The Company manufactures and/or distributes prescription products with the exception of a small portfolio of over-the-counter products manufactured by its subsidiary, Silarx Pharmaceuticals, Inc. As of June 30, 2016, the Company’s products included Acetazolamide Tablets; Butalbital, Acetaminophen and Caffeine Tablets; Butalbital, Aspirin and Caffeine Capsules; C-Topical Solution; Digoxin Tablets; Glycolax Rx; Isosorbide Mononitrate CR; Levothyroxine Sodium Tablets; Methylphenidate HCL CD; Methylphenidate ER; Nifedipine CR; Omeprazole DR; Oxbutynin ER; Pantoprazole DR; Pilocarpine HCl Tablets; Triamterene w/Hydrochlorothiazide Capsules, and Ursodiol Capsules. The Company has additional products under development, which are orally administered solid oral-dosage products (tablet/capsule) or oral solutions, nasal, topicals or parentarels, as well as other dosage forms.
Eyegate Pharmaceuticals Company Profile
Eyegate Pharmaceuticals, Inc. is a clinical-stage specialty pharmaceutical company. The Company is focused on developing and commercializing therapeutics and drug delivery systems for treating diseases of the eye. The Company’s lead product, EGP-437, incorporates a reformulated topically active corticosteroid, dexamethasone phosphate, which is delivered into the ocular tissues through its drug delivery system, the EyeGate II Delivery System. The Company is developing EGP-437 for the treatment of various inflammatory conditions of the eye, including uveitis, a debilitating form of intraocular inflammation of the anterior portion of the uvea, such as the iris and/or ciliary body, and macular edema, an abnormal thickening of the macula associated with the accumulation of excess fluids in the extracellular space of the neurosensory retina. The EyeGate II Delivery System is designed to deliver optimal quantities of drugs to the anterior or posterior segments of the eye.
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