Head-To-Head Review: Strongbridge Biopharma PLC (SBBP) versus Chiasma (CHMA)
Strongbridge Biopharma PLC (NASDAQ: SBBP) and Chiasma (NASDAQ:CHMA) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, profitability, risk, valuation, earnings and analyst recommendations.
This table compares Strongbridge Biopharma PLC and Chiasma’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Strongbridge Biopharma PLC||N/A||-83.83%||-34.77%|
This is a summary of recent ratings for Strongbridge Biopharma PLC and Chiasma, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Strongbridge Biopharma PLC||0||0||3||0||3.00|
Strongbridge Biopharma PLC currently has a consensus price target of $13.33, indicating a potential upside of 113.33%. Given Strongbridge Biopharma PLC’s stronger consensus rating and higher possible upside, analysts clearly believe Strongbridge Biopharma PLC is more favorable than Chiasma.
Insider and Institutional Ownership
62.8% of Strongbridge Biopharma PLC shares are owned by institutional investors. Comparatively, 50.4% of Chiasma shares are owned by institutional investors. 3.8% of Chiasma shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Strongbridge Biopharma PLC and Chiasma’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Strongbridge Biopharma PLC||$1.53 million||144.34||-$39.43 million||($2.78)||-2.25|
Chiasma has higher revenue, but lower earnings than Strongbridge Biopharma PLC. Strongbridge Biopharma PLC is trading at a lower price-to-earnings ratio than Chiasma, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Strongbridge Biopharma PLC has a beta of 2.71, meaning that its stock price is 171% more volatile than the S&P 500. Comparatively, Chiasma has a beta of 1.38, meaning that its stock price is 38% more volatile than the S&P 500.
Strongbridge Biopharma PLC beats Chiasma on 6 of the 11 factors compared between the two stocks.
About Strongbridge Biopharma PLC
Strongbridge Biopharma plc is a global commercial-stage biopharmaceutical company. The Company is focused on the development and commercialization of therapies for a range of diseases. The Company’s commercial product, KEVEYIS (dichlorphenamide), is indicated for the treatment of hyperkalemic, hypokalemic and related variants of primary periodic paralysis. The United States Food and Drug Administration (FDA) has granted orphan drug designation for KEVEYIS. The Company has a clinical-stage pipeline of therapies for endocrine diseases. The Company’s lead compounds include COR-003 (levoketoconazole), a cortisol synthesis inhibitor, and COR-005 (veldoreotide), a somatostatin analog (SSA). The Company is studying COR-003 for the treatment of endogenous Cushing’s syndrome. It is investigating COR-005 for the treatment of acromegaly. Both COR-003 and COR-005 have received orphan designation from the FDA and the European Medicines Agency (EMA).
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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