Analyzing Enanta Pharmaceuticals (NASDAQ:ENTA) & Addex Therapeutics (NASDAQ:ADXN)
by Scott Moore · The Cerbat GemAddex Therapeutics (NASDAQ:ADXN – Get Free Report) and Enanta Pharmaceuticals (NASDAQ:ENTA – Get Free Report) are both small-cap healthcare companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.
Risk and Volatility
Addex Therapeutics has a beta of 1.47, indicating that its stock price is 47% more volatile than the S&P 500. Comparatively, Enanta Pharmaceuticals has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500.
Valuation and Earnings
This table compares Addex Therapeutics and Enanta Pharmaceuticals”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Addex Therapeutics | $210,000.00 | 19.09 | -$8.12 million | ($5.94) | -0.55 |
| Enanta Pharmaceuticals | $65.26 million | 5.49 | -$81.89 million | ($2.41) | -5.10 |
Addex Therapeutics has higher earnings, but lower revenue than Enanta Pharmaceuticals. Enanta Pharmaceuticals is trading at a lower price-to-earnings ratio than Addex Therapeutics, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Addex Therapeutics and Enanta Pharmaceuticals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Addex Therapeutics | N/A | -134.76% | -106.00% |
| Enanta Pharmaceuticals | -96.89% | -61.84% | -20.70% |
Insider & Institutional Ownership
16.1% of Addex Therapeutics shares are owned by institutional investors. Comparatively, 95.0% of Enanta Pharmaceuticals shares are owned by institutional investors. 15.0% of Addex Therapeutics shares are owned by company insiders. Comparatively, 11.5% of Enanta Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of recent recommendations for Addex Therapeutics and Enanta Pharmaceuticals, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Addex Therapeutics | 1 | 0 | 0 | 0 | 1.00 |
| Enanta Pharmaceuticals | 1 | 0 | 5 | 0 | 2.67 |
Enanta Pharmaceuticals has a consensus price target of $21.00, suggesting a potential upside of 70.87%. Given Enanta Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts clearly believe Enanta Pharmaceuticals is more favorable than Addex Therapeutics.
Summary
Enanta Pharmaceuticals beats Addex Therapeutics on 8 of the 14 factors compared between the two stocks.
About Addex Therapeutics
Addex Therapeutics Ltd discovers, develops, and commercializes small-molecule pharmaceutical products for central nervous system (CNS) disorders in Switzerland. The company focuses on the discovery of G-protein coupled receptors and enzymes. Its lead programs include Dipraglurant for the treatment of Parkinson's disease levodopa-induced dyskinesia and dystonia, and post-stroke/TBI recovery; ADX71149, a novel orally active metabotropic glutamate receptor subtype 2 positive allosteric modulator (mGlu2 PAM) for the treatment of epilepsy; and GABAB PAM for the treatment of pain, anxiety, overactive bladder, and addiction, as well as substance use disorder. Addex Therapeutics Ltd has license and collaboration agreement with Janssen Pharmaceuticals Inc. for the discovery, development, and commercialization of novel mGlu2 PAM compounds for the treatment of CNS and related diseases; license and research agreement with Indivior PLC discovery, development, and commercialization of novel GABAB PAM compounds for the treatment of addiction and other CNS diseases; and The CharcotMarieTooth Association to evaluate the role of GABAB PAM compounds in preclinical models of CMT1A. The company was formerly known as Addex Pharmaceuticals Ltd. Addex Therapeutics Ltd was founded in 2002 and is based in Geneva, Switzerland.
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.