Ocera Therapeutics (NASDAQ: OCRX) and Strongbridge Biopharma PLC (NASDAQ:SBBP) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.
Earnings and Valuation
This table compares Ocera Therapeutics and Strongbridge Biopharma PLC’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Ocera Therapeutics||$550,000.00||49.65||-$24.06 million||($1.05)||-0.98|
|Strongbridge Biopharma PLC||$1.53 million||162.82||-$39.43 million||($2.78)||-2.54|
This is a breakdown of recent ratings and target prices for Ocera Therapeutics and Strongbridge Biopharma PLC, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Strongbridge Biopharma PLC||0||0||3||0||3.00|
Ocera Therapeutics presently has a consensus target price of $4.50, indicating a potential upside of 336.89%. Strongbridge Biopharma PLC has a consensus target price of $13.33, indicating a potential upside of 89.13%. Given Ocera Therapeutics’ higher possible upside, equities research analysts plainly believe Ocera Therapeutics is more favorable than Strongbridge Biopharma PLC.
Institutional & Insider Ownership
20.9% of Ocera Therapeutics shares are owned by institutional investors. 6.1% of Ocera Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Risk & Volatility
Ocera Therapeutics has a beta of 2.28, indicating that its stock price is 128% more volatile than the S&P 500. Comparatively, Strongbridge Biopharma PLC has a beta of 2.62, indicating that its stock price is 162% more volatile than the S&P 500.
This table compares Ocera Therapeutics and Strongbridge Biopharma PLC’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Strongbridge Biopharma PLC||N/A||-83.83%||-34.77%|
Strongbridge Biopharma PLC beats Ocera Therapeutics on 7 of the 12 factors compared between the two stocks.
About Ocera Therapeutics
Ocera Therapeutics, Inc. is a clinical-stage biopharmaceutical company. The Company is focused on acute and chronic orphan liver diseases. The Company is focused on the development and commercialization of its clinical candidate, OCR-002, for the treatment of hepatic encephalopathy (HE). OCR-002 is a molecule, ornithine phenylacetate, which functions as an ammonia scavenger. It is conducting a randomized, placebo-controlled double blind Phase IIb clinical trial to evaluate the efficacy of intravenous administration of OCR-002 IV formulation in reducing the severity of HE symptoms among HE patients. The Company also conducted a Phase IIa investigator-sponsored trial of OCR-002 in Spain in patients with upper gastrointestinal bleeding associated with liver cirrhosis. It is developing an oral form of OCR-002 to provide continuity of care for HE patients, where the intravenous form is used for hospital-based acute care and the oral form for chronic maintenance care post discharge.
About Strongbridge Biopharma PLC
Strongbridge Biopharma plc is a global commercial-stage biopharmaceutical company. The Company is focused on the development and commercialization of therapies for a range of diseases. The Company’s commercial product, KEVEYIS (dichlorphenamide), is indicated for the treatment of hyperkalemic, hypokalemic and related variants of primary periodic paralysis. The United States Food and Drug Administration (FDA) has granted orphan drug designation for KEVEYIS. The Company has a clinical-stage pipeline of therapies for endocrine diseases. The Company’s lead compounds include COR-003 (levoketoconazole), a cortisol synthesis inhibitor, and COR-005 (veldoreotide), a somatostatin analog (SSA). The Company is studying COR-003 for the treatment of endogenous Cushing’s syndrome. It is investigating COR-005 for the treatment of acromegaly. Both COR-003 and COR-005 have received orphan designation from the FDA and the European Medicines Agency (EMA).
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