Critical Analysis: ESSA Pharma (NASDAQ:EPIX) & Avid Bioservices (CDMO)
ESSA Pharma (NASDAQ:EPIX) and Avid Bioservices (NASDAQ:CDMO) are both small-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, earnings, analyst recommendations, valuation and risk.
Risk and Volatility
ESSA Pharma has a beta of 1.61, suggesting that its stock price is 61% more volatile than the S&P 500. Comparatively, Avid Bioservices has a beta of 2.37, suggesting that its stock price is 137% more volatile than the S&P 500.
This is a breakdown of current ratings and recommmendations for ESSA Pharma and Avid Bioservices, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
ESSA Pharma presently has a consensus price target of $0.70, suggesting a potential downside of 80.71%. Avid Bioservices has a consensus price target of $8.33, suggesting a potential upside of 54.89%. Given Avid Bioservices’ higher probable upside, analysts clearly believe Avid Bioservices is more favorable than ESSA Pharma.
This table compares ESSA Pharma and Avid Bioservices’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
66.5% of ESSA Pharma shares are owned by institutional investors. Comparatively, 21.7% of Avid Bioservices shares are owned by institutional investors. 0.9% of Avid Bioservices 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.
Earnings & Valuation
This table compares ESSA Pharma and Avid Bioservices’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|ESSA Pharma||N/A||N/A||-$4.72 million||($8.00)||-0.45|
|Avid Bioservices||$53.62 million||5.62||-$21.81 million||($0.50)||-10.76|
ESSA Pharma has higher earnings, but lower revenue than Avid Bioservices. Avid Bioservices is trading at a lower price-to-earnings ratio than ESSA Pharma, indicating that it is currently the more affordable of the two stocks.
Avid Bioservices beats ESSA Pharma on 8 of the 12 factors compared between the two stocks.
About ESSA Pharma
ESSA Pharma Inc., a clinical stage pharmaceutical company, focuses on the development of novel therapeutics for the treatment of prostate cancer. It is developing EPI-506 that is in Phase 1/2 clinical trials for the treatment of prostate cancer. The company was founded in 2009 and is headquartered in Vancouver, Canada.
About Avid Bioservices
Avid Bioservices, Inc., a biologics contract development and manufacturing company, focuses on the development and current Good Manufacturing Practices (cGMP) manufacture of biopharmaceutical products derived from mammalian cell culture. It provides a range of process development, cGMP clinical, and commercial manufacturing services for the biotechnology and biopharmaceutical industries. The company produces monoclonal antibodies and recombinant proteins in batch, fed-batch, and perfusion modes; and offers services, including cGMP clinical and commercial product manufacturing, purification, bulk packaging, stability testing and regulatory strategy, submission, and support. It also provides various process development services, such as cell line development and optimization, cell culture and feed optimization, analytical methods development, and product characterization. The company was formerly known as Peregrine Pharmaceuticals, Inc. and changed its name to Avid Bioservices, Inc. in January 2018. Avid Bioservices, Inc. was founded in 1981 and is headquartered in Tustin, California.
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