Spectrum Pharmaceuticals (NASDAQ: SPPI) and Oncobiologics (NYSE:ONS) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, earnings, institutional ownership, profitability and dividends.

Profitability

This table compares Spectrum Pharmaceuticals and Oncobiologics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Spectrum Pharmaceuticals -59.33% -30.95% -16.67%
Oncobiologics -1,757.25% N/A -123.55%

Earnings and Valuation

This table compares Spectrum Pharmaceuticals and Oncobiologics’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Spectrum Pharmaceuticals $132.03 million 5.61 -$44.85 million ($0.99) -9.53
Oncobiologics $1.40 million 15.86 -$41.02 million N/A N/A

Oncobiologics has higher revenue, but lower earnings than Spectrum Pharmaceuticals.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Spectrum Pharmaceuticals and Oncobiologics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Spectrum Pharmaceuticals 0 0 4 0 3.00
Oncobiologics 0 1 1 0 2.50

Spectrum Pharmaceuticals currently has a consensus target price of $11.00, suggesting a potential upside of 16.65%. Oncobiologics has a consensus target price of $9.00, suggesting a potential upside of 900.00%. Given Oncobiologics’ higher probable upside, analysts clearly believe Oncobiologics is more favorable than Spectrum Pharmaceuticals.

Insider and Institutional Ownership

66.1% of Spectrum Pharmaceuticals shares are held by institutional investors. 13.3% of Spectrum Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Spectrum Pharmaceuticals beats Oncobiologics on 7 of the 11 factors compared between the two stocks.

About Spectrum Pharmaceuticals

Spectrum Pharmaceuticals, Inc. is a biotechnology company. The Company operates through developing and commercializing oncology and hematology drug products segment. It has a product portfolio consisting of both commercial stage and development stage products that address various cancer types. The Company has six approved oncology/hematology products that target different types of cancer, including non-Hodgkin’s lymphoma (NHL), advanced metastatic colorectal cancer (mCRC), acute lymphoblastic leukemia (ALL) and multiple myeloma (MM). It also has three drugs in mid-to-late stage development, which include ROLONTIS for chemotherapy-induced neutropenia; QAPZOLA for immediate intravesical instillation in post-transurethral resection of bladder tumors in patients with non-muscle invasive bladder cancer (NMIBC), and POZIOTINIB, a pan-human epidermal growth factor receptor (HER) inhibitor used in the treatment of patients with a range of solid tumors, including breast and lung cancer.

About Oncobiologics

Oncobiologics, Inc. is a clinical-stage biopharmaceutical company. The Company is focused on identifying, developing, manufacturing and commercializing biosimilar therapeutics. It is focused on monoclonal antibodies (mAbs) in the disease areas of immunology and oncology. The Company offers BioSymphony Platform. The Company has identified approximately eight biosimilar product candidates, of which two product candidates are ONS-3010 and ONS-1045. ONS-3010 is an adalimumab (Humira) biosimilar. The Company has initiated Phase III preparatory activities for ONS-3010. Its second product candidate, ONS-1045, is a bevacizumab (Avastin) biosimilar. The Company’s other preclinical product candidate, ONS-1050, a trastuzumab (Herceptin) biosimilar, interferes with the human epidermal growth factor receptor 2 (HER2). ONS-4010 is a biosimilar to denosumab (Prolia/Xgeva), which is a human mAb. Its other biosimilar product, ONS-1055, is a biosimilar to cetuximab (Erbitux).

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