Analyzing Xenon Pharmaceuticals (NASDAQ:XENE) and Emisphere Technologies (OTCMKTS:EMIS)

Xenon Pharmaceuticals (NASDAQ:XENE) and Emisphere Technologies (OTCMKTS:EMIS) are both medical companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, risk, analyst recommendations, valuation, institutional ownership and profitability.

Analyst Recommendations

This is a summary of recent ratings and target prices for Xenon Pharmaceuticals and Emisphere Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xenon Pharmaceuticals	0	0	11	1	3.08
Emisphere Technologies	0	0	0	0	N/A

Xenon Pharmaceuticals currently has a consensus target price of $57.45, indicating a potential upside of 39.42%. Given Xenon Pharmaceuticals’ higher probable upside, equities analysts clearly believe Xenon Pharmaceuticals is more favorable than Emisphere Technologies.

Valuation & Earnings

This table compares Xenon Pharmaceuticals and Emisphere Technologies”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xenon Pharmaceuticals	$9.43 million	329.81	-$182.39 million	($2.71)	-15.21
Emisphere Technologies	N/A	N/A	N/A	N/A	N/A

Emisphere Technologies has lower revenue, but higher earnings than Xenon Pharmaceuticals.

Profitability

This table compares Xenon Pharmaceuticals and Emisphere Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Xenon Pharmaceuticals	N/A	-24.16%	-23.15%
Emisphere Technologies	N/A	N/A	N/A

Institutional and Insider Ownership

95.4% of Xenon Pharmaceuticals shares are owned by institutional investors. 5.5% of Xenon Pharmaceuticals shares are owned by company insiders. Comparatively, 72.9% of Emisphere Technologies shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Xenon Pharmaceuticals beats Emisphere Technologies on 5 of the 8 factors compared between the two stocks.

About Xenon Pharmaceuticals

Xenon Pharmaceuticals Inc., a clinical-stage biopharmaceutical company, engages in developing therapeutics to treat patients with neurological disorders in Canada. Its clinical development pipeline includes XEN496, a Kv7 potassium channel opener that is Phase III clinical trials for the treatment of KCNQ2 developmental and epileptic encephalopathy; and XEN1101, a Kv7 potassium channel opener, which is in Phase II clinical trial for the treatment of epilepsy and other neurological disorders. The company's product candidates also comprise NBI-921352, a selective Nav1.6 sodium channel inhibitor that is in Phase II clinical trials for the treatment of SCN8A developmental and epileptic encephalopathy, and other indications, including adult focal epilepsy. It has a license and collaboration agreement with the Neurocrine Biosciences, Inc. to develop treatments for epilepsy. The company was incorporated in 1996 and is headquartered in Burnaby, Canada.

About Emisphere Technologies

Emisphere Technologies, Inc. operates as a commercial stage pharmaceutical and drug delivery company in the United States. The company offers oral Eligen B12 Rx, an oral formulation prescription medical food for use by B12 deficient individuals. It is also developing GLP-1, which is in Phase III clinical trial for the treatment of type 2 diabetes and related conditions. The company's preclinical programs focus on the development of oral formulations for the treatment of diabetes; and products in the areas of cardiovascular, appetite suppression, and pain, as well as in the development and expansion of nutritional supplement products. It has license agreements with Novo Nordisk A/S to develop and commercialize oral formulations of GLP-1 receptor agonists in combination with Emisphere carriers, as well as to develop and commercialize oral formulations of Novo Nordisk's insulin using the company's Eligen Technology. The company was formerly known as Clinical Technologies Associates, Inc. and changed its name to Emisphere Technologies, Inc. in 1991. Emisphere Technologies, Inc. was founded in 1986 and is based in Roseland, New Jersey.