Analyzing Enanta Pharmaceuticals (NASDAQ:ENTA) and CannTrust (OTCMKTS:CNTTF)

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

Earnings and Valuation

This table compares Enanta Pharmaceuticals and CannTrust”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Enanta Pharmaceuticals	$79.20 million	2.52	-$133.82 million	($5.45)	-1.73
CannTrust	$15.96 million	0.00	$7.39 million	$0.07	N/A

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

Risk & Volatility

Enanta Pharmaceuticals has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500. Comparatively, CannTrust has a beta of 4.52, suggesting that its share price is 352% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Enanta Pharmaceuticals	-160.27%	-63.75%	-27.09%
CannTrust	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Enanta Pharmaceuticals and CannTrust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Enanta Pharmaceuticals	1	1	2	1	2.60
CannTrust	0	0	0	0	0.00

Enanta Pharmaceuticals currently has a consensus target price of $20.00, suggesting a potential upside of 112.31%. Given Enanta Pharmaceuticals’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Enanta Pharmaceuticals is more favorable than CannTrust.

Insider and Institutional Ownership

95.0% of Enanta Pharmaceuticals shares are owned by institutional investors. Comparatively, 0.1% of CannTrust shares are owned by institutional investors. 13.6% of Enanta Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

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 CannTrust

CannTrust Holdings Inc. produces and distributes pharmaceutical grade medical cannabis products in Canada. It sells dried cannabis and oil extractions to the client based on the medication document provided by health care practitioner. The company has a partnership with Gold Coast University Hospital. CannTrust Holdings Inc. was incorporated in 2015 and is headquartered in Vaughan, Canada.