DURECT Corporation (NASDAQ: DRRX) and Kythera Biopharmaceuticals (NASDAQ:KYTH) are both medical companies, but which is the better business? We will compare the two companies based on the strength of their dividends, profitabiliy, valuation, institutional ownership, risk, earnings and analyst recommendations.

Valuation and Earnings

This table compares DURECT Corporation and Kythera Biopharmaceuticals’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
DURECT Corporation $14.98 million 15.26 -$32.18 million ($0.25) -6.44
Kythera Biopharmaceuticals N/A N/A N/A N/A N/A

Kythera Biopharmaceuticals has higher revenue, but lower earnings than DURECT Corporation.

Profitability

This table compares DURECT Corporation and Kythera Biopharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DURECT Corporation -221.01% -436.77% -91.37%
Kythera Biopharmaceuticals -12,900.69% -93.97% -72.56%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for DURECT Corporation and Kythera Biopharmaceuticals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DURECT Corporation 0 0 3 0 3.00
Kythera Biopharmaceuticals 0 0 0 0 N/A

DURECT Corporation currently has a consensus target price of $3.17, suggesting a potential upside of 96.69%. Given DURECT Corporation’s higher probable upside, research analysts plainly believe DURECT Corporation is more favorable than Kythera Biopharmaceuticals.

Insider & Institutional Ownership

52.7% of DURECT Corporation shares are held by institutional investors. 10.3% of DURECT Corporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

DURECT Corporation beats Kythera Biopharmaceuticals on 6 of the 8 factors compared between the two stocks.

DURECT Corporation Company Profile

Durect Corporation is a biopharmaceutical company with research and development programs. The Company’s products candidates include DUR-928, oral for metabolic/lipid disorders, and DUR-928, injectable for acute organ injuries. Its other product candidates include POSIMIR (controlled release injection of bupivacaine), REMOXY (oral controlled release oxycodone), ORADUR-ADHD, ELADUR (controlled release injection of bupivicane), Relday (risperidone), ORADUR-based opioid (hydromorphone) and SABER-based ophthalmic. The Company’s ALZET product line consists of miniature, implantable osmotic pumps and accessories used for experimental research in mice, rats and other laboratory animals. The Company also manufactures and sells osmotic pumps used in laboratory research and design; and develops and manufactures a range of standard and custom biodegradable polymers and excipients for pharmaceutical and medical device clients for use as raw materials in their products.

Kythera Biopharmaceuticals Company Profile

KYTHERA Biopharmaceuticals, Inc. (KYTHERA) is a clinical-stage biopharmaceutical company engaged in the discovery, development and commercialization of prescription products for the aesthetic medicine market. The Company’s initial focus is on the facial aesthetics market. The Company’s product candidate is ATX101, an injectable drug in late-stage clinical development for the treatment of submental fullness associated with submental fat, which commonly presents as an undesirable double chin. ATX101 is a formulation of a purified synthetic version of deoxycholic acid. The Company has completed Phase III clinical trials for ATX101 and has made regulatory filings outside the United States, in Canada, Switzerland and Australia.

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