ARS Pharmaceuticals (NASDAQ:SPRY) versus Xeris Biopharma (NASDAQ:XERS) Critical Review

Xeris Biopharma (NASDAQ:XERS) and ARS Pharmaceuticals (NASDAQ:SPRY) are both small-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Earnings and Valuation

This table compares Xeris Biopharma and ARS Pharmaceuticals”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xeris Biopharma	$203.07 million	5.67	-$54.84 million	($0.10)	-69.40
ARS Pharmaceuticals	$89.15 million	11.58	$8.00 million	($0.81)	-12.89

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

Volatility and Risk

Xeris Biopharma has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500. Comparatively, ARS Pharmaceuticals has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500.

Institutional and Insider Ownership

42.8% of Xeris Biopharma shares are owned by institutional investors. Comparatively, 68.2% of ARS Pharmaceuticals shares are owned by institutional investors. 6.5% of Xeris Biopharma shares are owned by insiders. Comparatively, 33.5% of ARS Pharmaceuticals 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.

Analyst Recommendations

This is a summary of current ratings and target prices for Xeris Biopharma and ARS Pharmaceuticals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xeris Biopharma	1	2	6	0	2.56
ARS Pharmaceuticals	1	1	5	1	2.75

Xeris Biopharma presently has a consensus target price of $9.50, suggesting a potential upside of 36.89%. ARS Pharmaceuticals has a consensus target price of $31.80, suggesting a potential upside of 204.60%. Given ARS Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts clearly believe ARS Pharmaceuticals is more favorable than Xeris Biopharma.

Profitability

This table compares Xeris Biopharma and ARS Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Xeris Biopharma	-5.88%	N/A	-4.66%
ARS Pharmaceuticals	-56.06%	-38.77%	-23.46%

Summary

ARS Pharmaceuticals beats Xeris Biopharma on 9 of the 15 factors compared between the two stocks.

About Xeris Biopharma

Xeris Biopharma Holdings, Inc., a biopharmaceutical company, engages in developing and commercializing therapies in Illinois. The company offers Gvoke, a ready-to-use liquid-stable glucagon for the treatment of severe hypoglycemia pediatric and adult patients; Keveyis, a therapy for the treatment of hyperkalemic, hypokalemic, and related variants of primary periodic paralysis; and Recorlev, a cortisol synthesis inhibitor proved for the treatment of endogenous hypercortisolemia in adult patients with Cushing's syndrome. It is also developing XP-8121, a once-weekly subcutaneous injection of levothyroxine that is in phase I clinical trial for the treatment of hypothyroidism; and non-aqueous XeriSol and XeriJect technologies for various therapies. The company was incorporated in 2005 and is headquartered in Chicago, Illinois.

About ARS Pharmaceuticals

ARS Pharmaceuticals, Inc., a biopharmaceutical company, develops treatments for severe allergic reactions. The company is developing neffy, a needle-free and low-dose intranasal epinephrine nasal spray for the emergency treatment of Type I allergic reactions, including anaphylaxis. It serves healthcare professionals, patients, and caregivers. ARS Pharmaceuticals, Inc. was founded in 2015 and is headquartered in San Diego, California.