Alimera Sciences (NASDAQ: ALIM) and Strongbridge Biopharma (NASDAQ:SBBP) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, risk, dividends and institutional ownership.
Insider and Institutional Ownership
41.8% of Alimera Sciences shares are held by institutional investors. Comparatively, 64.0% of Strongbridge Biopharma shares are held by institutional investors. 14.7% of Alimera Sciences shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This table compares Alimera Sciences and Strongbridge Biopharma’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
Alimera Sciences has a beta of 2.16, indicating that its share price is 116% more volatile than the S&P 500. Comparatively, Strongbridge Biopharma has a beta of 2.6, indicating that its share price is 160% more volatile than the S&P 500.
This is a breakdown of recent recommendations and price targets for Alimera Sciences and Strongbridge Biopharma, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Alimera Sciences presently has a consensus price target of $4.00, suggesting a potential upside of 212.50%. Strongbridge Biopharma has a consensus price target of $14.67, suggesting a potential upside of 83.33%. Given Alimera Sciences’ higher possible upside, research analysts clearly believe Alimera Sciences is more favorable than Strongbridge Biopharma.
Earnings and Valuation
This table compares Alimera Sciences and Strongbridge Biopharma’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Alimera Sciences||$34.33 million||2.58||-$33.17 million||($0.31)||-4.13|
|Strongbridge Biopharma||N/A||N/A||-$48.59 million||($3.40)||-2.35|
Alimera Sciences has higher revenue and earnings than Strongbridge Biopharma. Alimera Sciences is trading at a lower price-to-earnings ratio than Strongbridge Biopharma, indicating that it is currently the more affordable of the two stocks.
Alimera Sciences beats Strongbridge Biopharma on 7 of the 11 factors compared between the two stocks.
About Alimera Sciences
Alimera Sciences, Inc. (Alimera) is a pharmaceutical company. The Company is engaged in the research, development and commercialization of prescription ophthalmic pharmaceuticals. The Company operates through two segments: U.S. and International. The Company focuses on diseases affecting the back of the eye or retina. The Company’s product is ILUVIEN, which is developed to treat diabetic macular edema (DME). DME is a disease of the retina that affects individuals with diabetes and can lead to severe vision loss and blindness. In the United States, ILUVIEN is indicated for the treatment of DME in patients who have been treated with a course of corticosteroids and did not have a rise in intraocular pressure (IOP). In the European Economic Area (EEA) countries, ILUVIEN is indicated for the treatment of vision impairment associated with DME considered insufficiently responsive to available therapies.
About Strongbridge Biopharma
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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