Cerulean Pharma (NASDAQ: DARE) and MyoKardia (NASDAQ:MYOK) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, profitability, risk and analyst recommendations.

Profitability

This table compares Cerulean Pharma and MyoKardia’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cerulean Pharma N/A -244.69% -99.67%
MyoKardia -44.65% -16.35% -12.16%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Cerulean Pharma and MyoKardia, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cerulean Pharma 0 1 2 0 2.67
MyoKardia 0 0 4 0 3.00

Cerulean Pharma currently has a consensus price target of $3.33, indicating a potential downside of 2.53%. MyoKardia has a consensus price target of $48.25, indicating a potential upside of 16.13%. Given MyoKardia’s stronger consensus rating and higher possible upside, analysts plainly believe MyoKardia is more favorable than Cerulean Pharma.

Earnings and Valuation

This table compares Cerulean Pharma and MyoKardia’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cerulean Pharma N/A N/A N/A N/A N/A
MyoKardia $43.35 million 34.01 -$18.78 million ($0.69) -60.22

Cerulean Pharma has higher revenue, but lower earnings than MyoKardia.

Institutional & Insider Ownership

78.6% of Cerulean Pharma shares are owned by institutional investors. Comparatively, 48.4% of MyoKardia shares are owned by institutional investors. 28.6% of Cerulean Pharma shares are owned by insiders. Comparatively, 46.1% of MyoKardia shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Cerulean Pharma has a beta of 2.56, meaning that its share price is 156% more volatile than the S&P 500. Comparatively, MyoKardia has a beta of 5.03, meaning that its share price is 403% more volatile than the S&P 500.

Summary

MyoKardia beats Cerulean Pharma on 8 of the 10 factors compared between the two stocks.

About Cerulean Pharma

Dare Bioscience, Inc., formerly Cerulean Pharma Inc., is a healthcare company. The Company is focused on the development and commercialization of products in women’s reproductive health. Its lead product candidate is Ovaprene, a clinical stage, non-hormonal contraceptive ring. The Company is developing Ovaprene to provide protection over multiple weeks of use and require no intervention at the time of intercourse. Ovaprene has a custom intravaginal ring design, with a permeable mesh in the center of the ring that creates a partial barrier to sperm, and a mechanism to release locally acting spermiostatic agents through the ring. The combination of these two complementary approaches produces attractive contraceptive efficacy outcomes that are consistent with the effective barrier option, the diaphragm, and short-acting hormonal options, such as oral pill, patches and vaginal ring.

About MyoKardia

MyoKardia, Inc. is a clinical-stage biopharmaceutical company. The Company focuses on the treatment of heritable cardiomyopathies, a group of rare, genetically-driven forms of heart failure that result from biomechanical defects in cardiac muscle contraction. The Company is engaged in the business of developing and commercializing therapeutics. The Company has used its precision medicine platform to generate an initial pipeline of over four therapeutic programs for the chronic treatment of two forms of heritable cardiomyopathy-hypertrophic cardiomyopathy (HCM), and dilated cardiomyopathy (DCM). Additionally, the Company has three preclinical programs, HCM-2, DCM-2 and LUS-1. Its lead product candidate, MYK-461, is an orally-administered small molecule designed to reduce excessive cardiac muscle contractility leading to HCM.

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