Critical Contrast: Pulmatrix (NASDAQ:PULM) versus Emergent BioSolutions (NYSE:EBS)

Pulmatrix (NASDAQ:PULM) and Emergent BioSolutions (NYSE:EBS) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, risk, dividends, earnings, institutional ownership, analyst recommendations and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Pulmatrix	-95.18%	-46.86%	-28.14%
Emergent BioSolutions	-53.26%	-34.38%	-11.71%

Valuation & Earnings

This table compares Pulmatrix 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
Pulmatrix	$7.30 million	1.07	-$14.12 million	($2.41)	-0.89
Emergent BioSolutions	$1.07 billion	0.37	-$760.50 million	($11.01)	-0.68

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

Analyst Ratings

This is a summary of current recommendations and price targets for Pulmatrix and Emergent BioSolutions, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pulmatrix	0	0	0	0	N/A
Emergent BioSolutions	1	0	2	0	2.33

Emergent BioSolutions has a consensus target price of $12.00, suggesting a potential upside of 60.21%. Given Emergent BioSolutions’ higher possible upside, analysts plainly believe Emergent BioSolutions is more favorable than Pulmatrix.

Insider & Institutional Ownership

11.8% of Pulmatrix shares are held by institutional investors. Comparatively, 78.4% of Emergent BioSolutions shares are held by institutional investors. 3.6% of Pulmatrix shares are held by insiders. Comparatively, 1.2% of Emergent BioSolutions shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Pulmatrix has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500. Comparatively, Emergent BioSolutions has a beta of 1.6, indicating that its stock price is 60% more volatile than the S&P 500.

Summary

Emergent BioSolutions beats Pulmatrix on 9 of the 13 factors compared between the two stocks.

About Pulmatrix

Pulmatrix, Inc., a clinical stage biotechnology company, focused on development of novel inhaled therapeutic products to prevent and treat respiratory and other diseases with unmet medical needs in the United States. The company offers iSPERSE, an engineered dry powder delivery platform, which enables delivery of small or large molecule drugs to the lungs by inhalation for local or systemic applications. It engages in developing PUR1800, a narrow spectrum kinase inhibitor completed Phase 1b clinical trials for the treatment of acute exacerbations in chronic obstructive pulmonary disease; PUR1900 for the treatment of allergic bronchopulmonary aspergillosis in patients with asthma and cystic fibrosis; and PUR3100, an iSPERSE formulation of dihydroergotamine which is in Phase 1 for the treatment of acute migraine. It has a license agreement with RespiVert Ltd. for access to a portfolio of kinase inhibitor drug candidates. The company was founded in 2003 and is headquartered in Bedford, 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.