Imprimis Pharmaceuticals (NASDAQ:IMMY) and Vernalis (OTCMKTS:VNLPY) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, dividends, profitability, risk and valuation.

Valuation and Earnings

This table compares Imprimis Pharmaceuticals and Vernalis’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Imprimis Pharmaceuticals $26.77 million 4.82 -$11.98 million ($0.60) -9.23
Vernalis $27.38 million 0.00 -$27.34 million N/A N/A

Imprimis Pharmaceuticals has higher earnings, but lower revenue than Vernalis.

Profitability

This table compares Imprimis Pharmaceuticals and Vernalis’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Imprimis Pharmaceuticals -16.81% -231.16% -25.18%
Vernalis N/A N/A N/A

Risk and Volatility

Imprimis Pharmaceuticals has a beta of -1.06, suggesting that its stock price is 206% less volatile than the S&P 500. Comparatively, Vernalis has a beta of 2.88, suggesting that its stock price is 188% more volatile than the S&P 500.

Institutional & Insider Ownership

16.1% of Imprimis Pharmaceuticals shares are held by institutional investors. 13.8% of Imprimis Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and price targets for Imprimis Pharmaceuticals and Vernalis, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Imprimis Pharmaceuticals 0 0 2 0 3.00
Vernalis 0 0 0 0 N/A

Imprimis Pharmaceuticals currently has a consensus target price of $10.75, indicating a potential upside of 94.04%.

Summary

Vernalis beats Imprimis Pharmaceuticals on 5 of the 9 factors compared between the two stocks.

Imprimis Pharmaceuticals Company Profile

Imprimis Pharmaceuticals, Inc., an ophthalmology-focused pharmaceutical company, engages in the development, production, and sale of medications to physicians and patients in the United States. It offers ophthalmology focused compounding formulations; and sterile and non-sterile compounded medications. The company also develops and commercializes therapeutics for the ocular surface diseases. In addition, it provides patent-pending preservative-free topical eye drop drug candidates, including SURF-100, an immunosuppressive drug that inhibits t-cell proliferation and replication in the dry eye disease (DED); SURF-200 for the patients with episodic DED; and SURF-300, a combination of a low-dose of doxycycline and a proprietary powderized triglyceride Omega-3 for the refractory DED patients with chronic DED symptoms. The company was formerly known as Transdel Pharmaceuticals, Inc. and changed its name to Imprimis Pharmaceuticals, Inc. in February 2012. Imprimis Pharmaceuticals, Inc. was founded in 1998 and is headquartered in San Diego, California.

Vernalis Company Profile

Vernalis plc, a commercial stage pharmaceutical company, engages in the research, development, and commercialization of pharmaceutical products for various medical disorders. The company markets Tuzistra XR for the U.S. prescription cough-cold market; Moxatag, a once-a-day formulation of amoxicillin antibiotic for the treatment of tonsillitis and pharyngitis secondary to streptococcus pyogenes in adults and pediatric patients; and frovatriptan for the acute treatment of migraine. It is also has licensing agreement to develop and commercialize various products focused on the U.S. prescription cough-cold market. In addition, the company is developing V158866, a fatty acid amide hydrolase inhibitor for the treatment of pain; CPI-444, an adenosine A2A receptor antagonist, which is in Phase I/Ib clinical trial to treat patients with various solid tumors; and AUY922, an intravenous Hsp90 inhibitor for treating cancer, as well as CHR2797, an oral aminopeptidase inhibitor for acute myeloid leukemia and myelodysplastic syndrome under Phase II trial. Further, it is developing S55746, a selective Bcl-2 inhibitor that is in Phase I study for the treatment of cancer; V158411 molecule; and RPL554, a novel long-acting inhibitor under Phase II clinical trial for treating inflammatory respiratory diseases. The company has collaborations with Asahi Kasei Pharma; Endo Pharmaceuticals Inc.; Biogen Idec; Lundbeck A/S; Menarini International Operations Luxembourg SA; Novartis Institute for Biomedical Research Inc.; Novartis Pharma AG; Servier Research Group; GlaxoSmithKline plc; Genentech; and Tris Pharma Inc. Vernalis plc was incorporated in 1988 and is headquartered in Winnersh, the United Kingdom.

Receive News & Ratings for Imprimis Pharmaceuticals Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Imprimis Pharmaceuticals and related companies with MarketBeat.com's FREE daily email newsletter.