Analyzing Ocera Therapeutics (OCRX) and Chiasma (CHMA)
Ocera Therapeutics (NASDAQ: OCRX) and Chiasma (NASDAQ:CHMA) are both small-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, profitability, earnings, dividends, valuation, risk and analyst recommendations.
This table compares Ocera Therapeutics and Chiasma’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
Ocera Therapeutics has a beta of 2.3, meaning that its share price is 130% more volatile than the S&P 500. Comparatively, Chiasma has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500.
Insider and Institutional Ownership
20.3% of Ocera Therapeutics shares are held by institutional investors. Comparatively, 50.4% of Chiasma shares are held by institutional investors. 7.2% of Ocera Therapeutics shares are held by company insiders. Comparatively, 3.8% of Chiasma shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
This is a summary of recent ratings and price targets for Ocera Therapeutics and Chiasma, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ocera Therapeutics presently has a consensus target price of $4.50, suggesting a potential upside of 324.53%. Given Ocera Therapeutics’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Ocera Therapeutics is more favorable than Chiasma.
Earnings & Valuation
This table compares Ocera Therapeutics and Chiasma’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Ocera Therapeutics||$550,000.00||51.09||-$24.06 million||($1.05)||-1.01|
Ocera Therapeutics has higher revenue and earnings than Chiasma. Chiasma is trading at a lower price-to-earnings ratio than Ocera Therapeutics, indicating that it is currently the more affordable of the two stocks.
Ocera Therapeutics beats Chiasma on 8 of the 11 factors compared between the two stocks.
About Ocera Therapeutics
Ocera Therapeutics, Inc. is a clinical-stage biopharmaceutical company. The Company is focused on acute and chronic orphan liver diseases. The Company is focused on the development and commercialization of its clinical candidate, OCR-002, for the treatment of hepatic encephalopathy (HE). OCR-002 is a molecule, ornithine phenylacetate, which functions as an ammonia scavenger. It is conducting a randomized, placebo-controlled double blind Phase IIb clinical trial to evaluate the efficacy of intravenous administration of OCR-002 IV formulation in reducing the severity of HE symptoms among HE patients. The Company also conducted a Phase IIa investigator-sponsored trial of OCR-002 in Spain in patients with upper gastrointestinal bleeding associated with liver cirrhosis. It is developing an oral form of OCR-002 to provide continuity of care for HE patients, where the intravenous form is used for hospital-based acute care and the oral form for chronic maintenance care post discharge.
Chiasma, Inc. is a biopharmaceutical company. The Company is engaged in developing and commercializing oral forms of therapies that are available only by injection. Using its Transient Permeability Enhancer (TPE) technology platform, the Company is developing oral therapies. The Company has completed a Phase III clinical trial of its TPE platform-based product candidate, oral octreotide capsules (trade named as MYCAPSSA) for the treatment of acromegaly, a condition that results in the body’s production of excess growth hormone. Octreotide is an analog of somatostatin, a natural inhibitor of growth hormone secretion. The Company is developing octreotide capsules as a liquid-filled solid gelatin capsule formulation, which is intended to be taken over twice a day. The Company’s TPE technology enhances the absorption through the intestinal wall of drugs. The Company also focuses on developing CH2 for Orphan indication.
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