Financial Review: Sarepta Therapeutics (NASDAQ:SRPT) and Emergent Biosolutions (NYSE:EBS)

Sarepta Therapeutics (NASDAQ:SRPT) and Emergent Biosolutions (NYSE:EBS) are both healthcare companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, institutional ownership and earnings.

Valuation & Earnings

This table compares Sarepta Therapeutics and Emergent Biosolutions”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sarepta Therapeutics	$2.20 billion	0.83	-$713.41 million	($1.37)	-12.58
Emergent Biosolutions	$742.90 million	0.42	$52.60 million	($5.10)	-1.20

Emergent Biosolutions has lower revenue, but higher earnings than Sarepta Therapeutics. Sarepta Therapeutics is trading at a lower price-to-earnings ratio than Emergent Biosolutions, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Sarepta Therapeutics has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500. Comparatively, Emergent Biosolutions has a beta of 2.37, meaning that its stock price is 137% more volatile than the S&P 500.

Insider & Institutional Ownership

86.7% of Sarepta Therapeutics shares are held by institutional investors. Comparatively, 78.4% of Emergent Biosolutions shares are held by institutional investors. 6.9% of Sarepta Therapeutics shares are held by company insiders. Comparatively, 6.0% of Emergent Biosolutions shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Sarepta Therapeutics and Emergent Biosolutions, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sarepta Therapeutics	7	5	6	0	1.94
Emergent Biosolutions	2	1	3	0	2.17

Sarepta Therapeutics presently has a consensus target price of $23.40, indicating a potential upside of 35.73%. Emergent Biosolutions has a consensus target price of $10.00, indicating a potential upside of 64.07%. Given Emergent Biosolutions’ stronger consensus rating and higher possible upside, analysts plainly believe Emergent Biosolutions is more favorable than Sarepta Therapeutics.

Profitability

This table compares Sarepta Therapeutics and Emergent Biosolutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sarepta Therapeutics	-13.48%	-1.60%	-0.66%
Emergent Biosolutions	-40.16%	-0.43%	-0.15%

Summary

Sarepta Therapeutics beats Emergent Biosolutions on 7 of the 13 factors compared between the two stocks.

About Sarepta Therapeutics

Sarepta Therapeutics, Inc., a commercial-stage biopharmaceutical company, focuses on the discovery and development of RNA-targeted therapeutics, gene therapies, and other genetic therapeutic modalities for the treatment of rare diseases. It offers EXONDYS 51 injection to treat duchenne muscular dystrophy (duchenne) in patients with confirmed mutation of the dystrophin gene that is amenable to exon 51 skipping; VYONDYS 53 for the treatment of duchenne in patients with confirmed mutation of the dystrophin gene that is amenable to exon 53 skipping; AMONDYS 45 for the treatment of duchenne in patients with confirmed mutation of the dystrophin gene; and ELEVIDYS, an adeno-associated virus based gene therapy for the treatment of ambulatory pediatric patients aged 4 through 5 years with duchenne with a confirmed mutation in the duchenne gene. The company is also developing SRP-5051, a peptide conjugated PMO that binds exon 51 of dystrophin pre-mRNA; and SRP-9003, a limb-girdle muscular dystrophies gene therapy program. It has collaboration and license agreements with F. Hoffman-La Roche Ltd; Nationwide Children's Hospital; Genevant Sciences; University of Florida; Dyno Therapeutics; Hansa Biopharma; Duke University; Genethon; and StrideBio. The company was incorporated in 1980 and is headquartered in Cambridge, Massachusetts.

About Emergent Biosolutions

Emergent BioSolutions Inc., a life sciences company, provides preparedness and response solutions for accidental, deliberate, and naturally occurring public health threats in the United States. The company offers NARCAN Nasal Spray for the emergency treatment of known or suspected opioid overdose; Vaxchora vaccine for the prevention of cholera; Vivotif vaccine for oral administration for the prevention of typhoid fever; Anthrasil for the treatment of inhalational anthrax; BioThrax, an anthrax vaccine; CYFENDUS for post-exposure prophylaxis of disease following suspected or confirmed exposure to Bacillus anthracis; and Raxibacumab injection for the treatment and prophylaxis of inhalational anthrax. It also provides ACAM2000, a smallpox vaccine; CNJ-016 to address complications from smallpox vaccination; TEMBEXA for the treatment of smallpox disease caused by variola virus in adult and pediatric patients; BAT for the treatment of symptomatic botulism; Ebanga for the treatment of Ebola; Reactive Skin Decontamination Lotion Kit to remove or neutralize chemical warfare agents from the skin; Trobigard, a atropine sulfate obidoxime chloride auto-injector. In addition, the company is developing CGRD-001 for the treatment of poisoning by organophosphorus nerve agents or organophosphorus compounds; EBS-LASV to prevent Lassa fever; EBS-MARV to prevent Marburg virus disease; EBS-SUDV to prevent Sudan virus disease; Pan-Ebola mAbs for the treatment of ebola virus; SIAN Antidote for initial treatment of certain or suspected acute cyanide poisoning; UniFlu for immunity against influenza A and B viruses; and WEVEE-VLP for equine encephalitis virus infections. Further, it provides contract development and manufacturing services comprising drug substance and product manufacturing, and packaging, as well as technology transfer, process, and analytical development services. The company was incorporated in 1998 and is headquartered in Gaithersburg, Maryland.