Analyzing Emergent BioSolutions (NYSE:EBS) & Vectura Group (OTCMKTS:VEGPF)

Vectura Group (OTCMKTS:VEGPF) and Emergent BioSolutions (NYSE:EBS) are both small-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, earnings, institutional ownership, valuation and dividends.

Profitability

This table compares Vectura Group and Emergent BioSolutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vectura Group	N/A	N/A	N/A
Emergent BioSolutions	-18.55%	-9.91%	-3.31%

Analyst Recommendations

This is a summary of current ratings and price targets for Vectura Group and Emergent BioSolutions, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vectura Group	0	0	0	0	0.00
Emergent BioSolutions	0	0	3	0	3.00

Emergent BioSolutions has a consensus price target of $14.33, suggesting a potential upside of 23.42%. Given Emergent BioSolutions’ stronger consensus rating and higher probable upside, analysts clearly believe Emergent BioSolutions is more favorable than Vectura Group.

Volatility and Risk

Vectura Group has a beta of 0.37, indicating that its share price is 63% less volatile than the S&P 500. Comparatively, Emergent BioSolutions has a beta of 1.6, indicating that its share price is 60% more volatile than the S&P 500.

Institutional & Insider Ownership

78.4% of Emergent BioSolutions shares are owned by institutional investors. 1.2% of Emergent BioSolutions shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Vectura Group and Emergent BioSolutions”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vectura Group	$244.76 million	4.37	$157.16 million	$0.26	6.81
Emergent BioSolutions	$1.05 billion	0.60	-$760.50 million	($4.10)	-2.83

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

About Vectura Group

Vectura Group Plc engages in the provision of pharmaceutical development. Its activities include research, development, and commercialization of novel therapeutic products. The company operates through the following segments: Switzerland, United Kingdom, Germany, United States of America, and France. Vectura Group was founded by David Anthony Gough in 1997 and is headquartered in Chippenham, the United Kingdom.

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.