Reviewing Enanta Pharmaceuticals (NASDAQ:ENTA) and Cumberland Pharmaceuticals (NASDAQ:CPIX)

Cumberland Pharmaceuticals (NASDAQ:CPIXGet Free Report) and Enanta Pharmaceuticals (NASDAQ:ENTAGet Free Report) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.

Profitability

This table compares Cumberland Pharmaceuticals and Enanta Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cumberland Pharmaceuticals -29.54% -9.50% -3.19%
Enanta Pharmaceuticals -171.57% -68.68% -28.06%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Cumberland Pharmaceuticals and Enanta Pharmaceuticals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cumberland Pharmaceuticals 0 0 0 0 0.00
Enanta Pharmaceuticals 1 0 3 1 2.80

Enanta Pharmaceuticals has a consensus price target of $19.50, indicating a potential upside of 120.84%. Given Enanta Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts clearly believe Enanta Pharmaceuticals is more favorable than Cumberland Pharmaceuticals.

Earnings and Valuation

This table compares Cumberland Pharmaceuticals and Enanta Pharmaceuticals”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cumberland Pharmaceuticals $39.55 million 0.49 -$6.28 million ($0.77) -1.78
Enanta Pharmaceuticals $67.64 million 2.77 -$133.82 million ($5.48) -1.61

Cumberland Pharmaceuticals has higher earnings, but lower revenue 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.

Insider & Institutional Ownership

15.5% of Cumberland Pharmaceuticals shares are held by institutional investors. Comparatively, 95.0% of Enanta Pharmaceuticals shares are held by institutional investors. 43.3% of Cumberland Pharmaceuticals shares are held by insiders. Comparatively, 13.6% of Enanta Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Cumberland Pharmaceuticals has a beta of 0.22, meaning that its share price is 78% less volatile than the S&P 500. Comparatively, Enanta Pharmaceuticals has a beta of 0.56, meaning that its share price is 44% 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 Cumberland Pharmaceuticals

(Get Free Report)

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.

About Enanta Pharmaceuticals

(Get Free Report)

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.

Receive News & Ratings for Cumberland Pharmaceuticals Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Cumberland Pharmaceuticals and related companies with MarketBeat.com's FREE daily email newsletter.