Head to Head Review: Roivant Sciences (NASDAQ:ROIV) vs. Emergent Biosolutions (NYSE:EBS)

Emergent Biosolutions (NYSE:EBSGet Free Report) and Roivant Sciences (NASDAQ:ROIVGet Free Report) are both healthcare companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, institutional ownership, earnings, risk and valuation.

Profitability

This table compares Emergent Biosolutions and Roivant Sciences’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Emergent Biosolutions -22.95% 16.35% 6.17%
Roivant Sciences -3,534.96% -22.94% -21.53%

Analyst Recommendations

This is a breakdown of current ratings for Emergent Biosolutions and Roivant Sciences, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Emergent Biosolutions 2 1 3 0 2.17
Roivant Sciences 1 1 11 1 2.86

Emergent Biosolutions currently has a consensus target price of $10.00, indicating a potential upside of 45.67%. Roivant Sciences has a consensus target price of $41.42, indicating a potential upside of 2.20%. Given Emergent Biosolutions’ higher possible upside, equities analysts clearly believe Emergent Biosolutions is more favorable than Roivant Sciences.

Institutional & Insider Ownership

78.4% of Emergent Biosolutions shares are held by institutional investors. Comparatively, 64.8% of Roivant Sciences shares are held by institutional investors. 6.0% of Emergent Biosolutions shares are held by company insiders. Comparatively, 8.8% of Roivant Sciences shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility and Risk

Emergent Biosolutions has a beta of 2.34, meaning that its share price is 134% more volatile than the S&P 500. Comparatively, Roivant Sciences has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500.

Valuation and Earnings

This table compares Emergent Biosolutions and Roivant Sciences”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Emergent Biosolutions $742.90 million 0.47 $52.60 million ($3.55) -1.93
Roivant Sciences $8.26 million 3,544.27 -$299.77 million ($0.53) -76.47

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

Summary

Emergent Biosolutions beats Roivant Sciences on 9 of the 15 factors compared between the two stocks.

About Emergent Biosolutions

(Get Free Report)

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.

About Roivant Sciences

(Get Free Report)

Roivant Sciences Ltd., a commercial-stage biopharmaceutical company, engages in the development and commercialization of medicines for inflammation and immunology areas. The company provides Vants, a model to develop and commercialize its medicines and technologies focusing on biopharmaceutical businesses, discovery-stage companies, and health technology startups. It develops VTAMA, a novel topical for the treatment of psoriasis and atopic dermatitis; batoclimab and IMVT-1402, the fully human monoclonal antibodies targeting the neonatal Fc receptor across various IgG-mediated autoimmune indications; and RVT-3101, an anti-TL1A antibody for ulcerative colitis and Crohn's disease. The company was founded in 2014 and is based in London, the United Kingdom.

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