Critical Contrast: Xeris Biopharma (NASDAQ:XERS) and Theravance Biopharma (NASDAQ:TBPH)

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

Earnings and Valuation

This table compares Xeris Biopharma and Theravance Biopharma”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xeris Biopharma	$291.85 million	3.92	$550,000.00	($0.01)	-663.00
Theravance Biopharma	$107.46 million	8.16	$105.89 million	$2.03	8.38

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

Profitability

This table compares Xeris Biopharma and Theravance Biopharma’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Xeris Biopharma	0.19%	-5.33%	0.16%
Theravance Biopharma	98.54%	16.76%	9.23%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Xeris Biopharma and Theravance Biopharma, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xeris Biopharma	0	3	4	0	2.57
Theravance Biopharma	0	4	2	2	2.75

Xeris Biopharma presently has a consensus price target of $10.80, suggesting a potential upside of 62.90%. Theravance Biopharma has a consensus price target of $21.83, suggesting a potential upside of 28.28%. Given Xeris Biopharma’s higher possible upside, equities research analysts clearly believe Xeris Biopharma is more favorable than Theravance Biopharma.

Institutional & Insider Ownership

42.8% of Xeris Biopharma shares are held by institutional investors. Comparatively, 99.1% of Theravance Biopharma shares are held by institutional investors. 6.5% of Xeris Biopharma shares are held by company insiders. Comparatively, 6.9% of Theravance Biopharma shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

Xeris Biopharma has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500. Comparatively, Theravance Biopharma has a beta of 0.19, meaning that its stock price is 81% less volatile than the S&P 500.

Summary

Theravance Biopharma beats Xeris Biopharma on 11 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 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.