Reviewing Tonix Pharmaceuticals (NASDAQ:TNXP) & Emergent Biosolutions (NYSE:EBS)

Tonix Pharmaceuticals (NASDAQ:TNXP) and Emergent Biosolutions (NYSE:EBS) are both small-cap healthcare companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Volatility & Risk

Tonix Pharmaceuticals has a beta of 1.74, suggesting that its share price is 74% more volatile than the S&P 500. Comparatively, Emergent Biosolutions has a beta of 2.34, suggesting that its share price is 134% more volatile than the S&P 500.

Valuation and Earnings

This table compares Tonix Pharmaceuticals 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
Tonix Pharmaceuticals	$29.10 million	5.72	-$124.02 million	($12.94)	-0.75
Emergent Biosolutions	$742.90 million	0.47	$52.60 million	($3.55)	-1.91

Emergent Biosolutions has higher revenue and earnings than Tonix Pharmaceuticals. Emergent Biosolutions is trading at a lower price-to-earnings ratio than Tonix Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Tonix Pharmaceuticals and Emergent Biosolutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tonix Pharmaceuticals	-548.64%	-68.99%	-61.31%
Emergent Biosolutions	-22.95%	16.35%	6.17%

Institutional and Insider Ownership

82.3% of Tonix Pharmaceuticals shares are owned by institutional investors. Comparatively, 78.4% of Emergent Biosolutions shares are owned by institutional investors. 2.0% of Tonix Pharmaceuticals shares are owned by insiders. Comparatively, 6.0% of Emergent Biosolutions shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations for Tonix Pharmaceuticals and Emergent Biosolutions, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tonix Pharmaceuticals	1	0	0	2	3.00
Emergent Biosolutions	2	1	3	0	2.17

Tonix Pharmaceuticals presently has a consensus target price of $24.50, suggesting a potential upside of 152.58%. Emergent Biosolutions has a consensus target price of $10.00, suggesting a potential upside of 47.82%. Given Tonix Pharmaceuticals’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Tonix Pharmaceuticals is more favorable than Emergent Biosolutions.

Summary

Emergent Biosolutions beats Tonix Pharmaceuticals on 9 of the 15 factors compared between the two stocks.

About Tonix Pharmaceuticals

Tonix Pharmaceuticals Holding Corp., a biopharmaceutical company, focuses on developing, discovering, commercializing, and licensing therapeutics to treat and prevent human disease and alleviate suffering. It markets Zembrace SymTouch and Tosymra for the treatment of acute migraine with or without aura in adults. Its portfolio focuses on central nervous system disorders, as well as rare disease, immunology, and infectious disease product candidates. The company’s priority is to submit a New Drug Application (NDA) to the FDA for TNX-102 SL (cyclobenzaprine HCl sublingual tablet), which has completed two positive Phase 3 studies for the management of fibromyalgia. TNX-102 SL is also being developed to treat fibromyalgia-type Long COVID, a chronic post-acute COVID-19 condition. Its TNX-1300 (cocaine esterase) is a biologic designed to treat cocaine intoxication and has been granted breakthrough therapy designation by the FDA. The company’s rare disease development portfolio comprises TNX-2900, an intranasal potentiated oxytocin for the treatment of Prader-Willi syndrome (PWS). Its immunology portfolio includes TNX-1500, which is a biologic to address organ transplant rejection and autoimmune diseases. The company’s infectious disease pipeline includes TNX-801, a vaccine in development to prevent smallpox and mpox. TNX-801 also serves as the live virus vaccine platform or recombinant pox vaccine platform for other infectious diseases, including TNX-1800 and TNX-1850, in development as a vaccine to protect against COVID-19. Its infectious disease development portfolio also comprises TNX-3900, and TNX-4200 are orally available CD45 antagonists in preclinical development. Tonix Pharmaceuticals Holding Corp. has collaboration agreement with Bilthoven Biologicals to advance TNX-801 mpox vaccine candidate; and with X-Chem, Inc. to develop broad-spectrum antivirals. The company was founded in 2007 and is headquartered in Chatham, New Jersey.

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.