Financial Survey: Savara (NASDAQ:SVRA) vs. Enanta Pharmaceuticals (NASDAQ:ENTA)

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

Volatility & Risk

Enanta Pharmaceuticals has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500. Comparatively, Savara has a beta of 0.34, meaning that its stock price is 66% less volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Enanta Pharmaceuticals	$65.32 million	6.40	-$81.89 million	($3.20)	-4.50
Savara	N/A	N/A	-$95.88 million	($0.53)	-11.26

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

Institutional and Insider Ownership

95.0% of Enanta Pharmaceuticals shares are held by institutional investors. Comparatively, 87.9% of Savara shares are held by institutional investors. 11.5% of Enanta Pharmaceuticals shares are held by company insiders. Comparatively, 5.3% of Savara shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Enanta Pharmaceuticals	-106.80%	-78.58%	-23.18%
Savara	N/A	-86.60%	-65.44%

Analyst Ratings

This is a breakdown of current ratings and price targets for Enanta Pharmaceuticals and Savara, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Enanta Pharmaceuticals	1	0	6	0	2.71
Savara	1	1	6	1	2.78

Enanta Pharmaceuticals presently has a consensus target price of $20.33, indicating a potential upside of 41.11%. Savara has a consensus target price of $8.86, indicating a potential upside of 48.36%. Given Savara’s stronger consensus rating and higher probable upside, analysts plainly believe Savara is more favorable than Enanta Pharmaceuticals.

Summary

Enanta Pharmaceuticals beats Savara on 8 of the 13 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 Savara

Savara Inc., formerly Mast Therapeutics, Inc., is a clinical-stage pharmaceutical company. The Company is focused on the development and commercialization of novel therapies for the treatment of patients with rare respiratory diseases. Its pipeline includes AeroVanc, Molgradex and AIR001. AeroVanc is an inhaled formulation of vancomycin, which the Company is developing for the treatment of persistent methicillin-resistant Staphylococcus aureus, lung infection in cystic fibrosis patients. Molgradex is an inhaled formulation of recombinant human granulocyte-macrophage colony-stimulating factor. It is developing Molgradex for the treatment of autoimmune pulmonary alveolar proteinosis, a rare lung disease. AIR001 is a sodium nitrite solution for inhalation via nebulization. AIR001 is in Phase II clinical development for the treatment of heart failure with preserved ejection fraction, also known as diastolic heart failure or heart failure with preserved systolic function.