Theravance Biopharma (NASDAQ:TBPH – Get Free Report) and ARS Pharmaceuticals (NASDAQ:SPRY – Get Free Report) are both small-cap healthcare companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, dividends, risk, profitability, analyst recommendations, earnings and institutional ownership.
Risk and Volatility
Theravance Biopharma has a beta of 0.25, indicating that its stock price is 75% less volatile than the S&P 500. Comparatively, ARS Pharmaceuticals has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500.
Valuation & Earnings
This table compares Theravance Biopharma and ARS Pharmaceuticals”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Theravance Biopharma | $104.31 million | 8.48 | $105.89 million | $1.01 | 16.86 |
| ARS Pharmaceuticals | $84.28 million | 4.64 | -$171.30 million | ($2.18) | -1.80 |
Theravance Biopharma has higher revenue and earnings than ARS Pharmaceuticals. ARS Pharmaceuticals is trading at a lower price-to-earnings ratio than Theravance Biopharma, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
99.1% of Theravance Biopharma shares are owned by institutional investors. Comparatively, 68.2% of ARS Pharmaceuticals shares are owned by institutional investors. 7.6% of Theravance Biopharma shares are owned by insiders. Comparatively, 33.8% of ARS Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent recommendations for Theravance Biopharma and ARS Pharmaceuticals, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Theravance Biopharma | 0 | 8 | 0 | 0 | 2.00 |
| ARS Pharmaceuticals | 1 | 1 | 4 | 0 | 2.50 |
Theravance Biopharma presently has a consensus target price of $19.40, suggesting a potential upside of 13.92%. ARS Pharmaceuticals has a consensus target price of $25.00, suggesting a potential upside of 536.13%. Given ARS Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts clearly believe ARS Pharmaceuticals is more favorable than Theravance Biopharma.
Profitability
This table compares Theravance Biopharma and ARS Pharmaceuticals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Theravance Biopharma | 51.58% | -0.77% | -0.46% |
| ARS Pharmaceuticals | -184.24% | -256.67% | -69.63% |
Summary
Theravance Biopharma beats ARS Pharmaceuticals on 9 of the 14 factors compared between the two stocks.
About Theravance Biopharma
Theravance Biopharma, Inc. is a diversified biopharmaceutical company primarily focused on the discovery, development and commercialization of organ-selective medicines. Its purpose is to pioneer a new generation of small molecule drugs designed to better meet patient needs. Its research is focused in the areas of inflammation and immunology.
In pursuit of its purpose, Theravance Biopharma applies insights and innovation at each stage of its business and utilizes its internal capabilities and those of partners around the world. The Company applies organ-selective expertise to target disease biologically, to discover and develop medicines that may expand the therapeutic index with the goal of maximizing efficacy and limiting systemic side effects. These efforts leverage years of experience in developing lung-selective medicines to treat respiratory disease, including FDA-approved YUPELRI® (revefenacin) inhalation solution indicated for the maintenance treatment of patients with chronic obstructive pulmonary disease (COPD). Its pipeline of internally discovered programs is targeted to address significant patient needs.
Theravance Biopharma has an economic interest in potential future payments from Glaxo Group Limited or one of its affiliates (GSK) pursuant to its agreements with Innoviva, Inc. relating to certain programs, including TRELEGY.
For more information, please visit www.theravance.com.
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.
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