Collegium Pharmaceutical (NASDAQ: COLL) and Aquinox Pharmaceuticals (NASDAQ:AQXP) are both small-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, risk, valuation and profitability.

Insider & Institutional Ownership

83.1% of Collegium Pharmaceutical shares are owned by institutional investors. Comparatively, 95.2% of Aquinox Pharmaceuticals shares are owned by institutional investors. 25.8% of Collegium Pharmaceutical shares are owned by insiders. Comparatively, 2.7% of Aquinox Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Collegium Pharmaceutical and Aquinox Pharmaceuticals’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Collegium Pharmaceutical $7.44 million 38.75 -$97.95 million ($3.66) -2.66
Aquinox Pharmaceuticals N/A N/A N/A ($1.89) -7.74

Aquinox Pharmaceuticals has higher revenue, but lower earnings than Collegium Pharmaceutical. Aquinox Pharmaceuticals is trading at a lower price-to-earnings ratio than Collegium Pharmaceutical, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Collegium Pharmaceutical and Aquinox Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Collegium Pharmaceutical -1,319.39% -93.73% -74.81%
Aquinox Pharmaceuticals N/A -29.54% -27.88%

Risk & Volatility

Collegium Pharmaceutical has a beta of -0.16, meaning that its stock price is 116% less volatile than the S&P 500. Comparatively, Aquinox Pharmaceuticals has a beta of -17.03, meaning that its stock price is 1,803% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Collegium Pharmaceutical and Aquinox Pharmaceuticals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Collegium Pharmaceutical 0 0 5 0 3.00
Aquinox Pharmaceuticals 0 0 4 0 3.00

Collegium Pharmaceutical currently has a consensus price target of $22.20, indicating a potential upside of 127.69%. Aquinox Pharmaceuticals has a consensus price target of $24.67, indicating a potential upside of 68.60%. Given Collegium Pharmaceutical’s higher possible upside, equities research analysts clearly believe Collegium Pharmaceutical is more favorable than Aquinox Pharmaceuticals.

About Collegium Pharmaceutical

Collegium Pharmaceutical, Inc. is a specialty pharmaceutical company. The Company is engaged in developing and commercializing abuse-deterrent products that incorporate its DETERx platform technology for the treatment of chronic pain and other diseases. Its products include Xtampza ER and ONSOLIS. Its DETERx platform provides extended-release drug delivery, while safeguarding against common methods of abuse and tampering, including crushing, chewing, and heating and injecting. Xtampza ER is designed to provide adequate pain control while maintaining its extended-release drug release profile after being subjected to common methods of abuse and accidental misuse. ONSOLIS is a Transmucosal Immediate-Release Fentanyl (TIRF) film indicated for the management of breakthrough pain in cancer patients (BTPc), 18 years of age and older, who are already receiving and who are tolerant to opioid therapy for their underlying persistent cancer pain.

About Aquinox Pharmaceuticals

Aquinox Pharmaceuticals, Inc. is a clinical-stage pharmaceutical company discovering and developing targeted therapeutics in disease areas of inflammation and immuno-oncology. The Company’s primary focus is anti-inflammatory product candidates targeting the Src Homology 2 (SH2)-containing inositol-5-phosphatase 1 (SHIP1) enzyme, which is a regulator of a cellular signaling pathway in immune cells, known as the phosphatidylinositol-4,5-bisphosphate 3-kinase (PI3K) pathway. Its product candidate, AQX-1125, is a small molecule activator of SHIP1 suitable for oral, once daily dosing. The Company is developing AQX-1125 as a treatment in interstitial cystitis/bladder pain syndrome (IC/BPS), a chronic inflammatory disease of the bladder. AQX-1125 is a SHIP1 activator that has demonstrated preliminary safety, anti-inflammatory potential and drug properties in multiple preclinical studies.

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