Voyager Therapeutics (NASDAQ: VYGR) and Heron Therapeutics (NASDAQ:HRTX) are both small-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, profitability, dividends and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations for Voyager Therapeutics and Heron Therapeutics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Voyager Therapeutics 0 1 7 0 2.88
Heron Therapeutics 0 0 11 0 3.00

Voyager Therapeutics currently has a consensus price target of $24.83, suggesting a potential upside of 9.11%. Heron Therapeutics has a consensus price target of $32.00, suggesting a potential upside of 87.13%. Given Heron Therapeutics’ stronger consensus rating and higher possible upside, analysts clearly believe Heron Therapeutics is more favorable than Voyager Therapeutics.

Valuation & Earnings

This table compares Voyager Therapeutics and Heron Therapeutics’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Voyager Therapeutics $8.31 million 73.68 -$59.32 million ($2.30) -9.90
Heron Therapeutics $13.42 million 68.98 -$174.14 million ($4.26) -4.01

Voyager Therapeutics has higher revenue, but lower earnings than Heron Therapeutics. Voyager Therapeutics is trading at a lower price-to-earnings ratio than Heron Therapeutics, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

40.7% of Voyager Therapeutics shares are owned by institutional investors. 8.0% of Voyager Therapeutics shares are owned by insiders. Comparatively, 19.9% of Heron Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Voyager Therapeutics and Heron Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Voyager Therapeutics -712.22% -46.15% -32.66%
Heron Therapeutics N/A -451.80% -152.23%

Volatility and Risk

Voyager Therapeutics has a beta of 4.49, indicating that its share price is 349% more volatile than the S&P 500. Comparatively, Heron Therapeutics has a beta of 2.12, indicating that its share price is 112% more volatile than the S&P 500.

Summary

Voyager Therapeutics beats Heron Therapeutics on 7 of the 13 factors compared between the two stocks.

About Voyager Therapeutics

Voyager Therapeutics, Inc. is a clinical-stage gene therapy company. The Company focuses on developing treatments for patients suffering from severe diseases of the central nervous system (CNS). The Company’s pipeline consists of programs for CNS indications, including advanced Parkinson’s disease; a monogenic form of amyotrophic lateral sclerosis (ALS); Huntington’s disease; Friedreich’s ataxia; frontotemporal dementia/Alzheimer’s disease, and severe chronic pain. The Company’s clinical candidate, VY-AADC01, is an adeno-associated virus (AAV) gene therapy product candidate, for the treatment of advanced Parkinson’s disease. VY-AADC01 consists of the AAV2 capsid, which has been used in multiple AAV gene therapy clinical trials for various diseases, and the cytomegalovirus promoter that drives expression of the aromatic L-amino acid decarboxylase (AADC) transgene. Its pipeline also includes VY-SOD101, VY-FXN01, VY-HTT01, VY-TAU01 and VY-NAV01.

About Heron Therapeutics

Heron Therapeutics, Inc. is a biotechnology company engaged in developing pharmaceutical products for patients suffering from cancer or pain. The Company’s product candidates include SUSTOL, HTX-019 and HTX-011. All of its product candidates utilize science and technology platforms, including its Biochronomer drug delivery technology. The Company’s SUSTOL (granisetron) injection, extended release is being developed for the prevention of both acute and delayed chemotherapy-induced nausea and vomiting (CINV) associated with moderately emetogenic chemotherapy (MEC) or highly emetogenic chemotherapy (HEC). HTX-019, which is an intravenous formulation of aprepitant, a neurokinin-1 (NK1) receptor antagonist, is being developed for the prevention of CINV. HTX-011, a long-acting formulation of the local anesthetic bupivacaine in a fixed-dose combination with the anti-inflammatory meloxicam, is being developed for the prevention of post-operative pain. HTX-011 is in Phase II clinical trials.

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