Osmotica Pharmaceuticals (NASDAQ:OSMT) and Urovant Sciences (NASDAQ:UROV) are both small-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Volatility and Risk

Osmotica Pharmaceuticals has a beta of 3.27, indicating that its share price is 227% more volatile than the S&P 500. Comparatively, Urovant Sciences has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Osmotica Pharmaceuticals and Urovant Sciences, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Osmotica Pharmaceuticals 0 1 3 0 2.75
Urovant Sciences 0 3 0 0 2.00

Osmotica Pharmaceuticals currently has a consensus target price of $9.00, indicating a potential upside of 102.70%. Urovant Sciences has a consensus target price of $16.17, indicating a potential upside of 0.23%. Given Osmotica Pharmaceuticals’ stronger consensus rating and higher possible upside, equities analysts plainly believe Osmotica Pharmaceuticals is more favorable than Urovant Sciences.

Profitability

This table compares Osmotica Pharmaceuticals and Urovant Sciences’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Osmotica Pharmaceuticals -73.47% -15.61% -4.38%
Urovant Sciences N/A -6,363.46% -156.89%

Institutional and Insider Ownership

11.9% of Osmotica Pharmaceuticals shares are owned by institutional investors. Comparatively, 20.3% of Urovant Sciences shares are owned by institutional investors. 5.3% of Osmotica Pharmaceuticals shares are owned by insiders. Comparatively, 2.7% of Urovant Sciences shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Osmotica Pharmaceuticals and Urovant Sciences’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Osmotica Pharmaceuticals $240.03 million 0.95 -$270.90 million $0.25 17.76
Urovant Sciences N/A N/A -$146.74 million ($4.71) -3.42

Urovant Sciences has lower revenue, but higher earnings than Osmotica Pharmaceuticals. Urovant Sciences is trading at a lower price-to-earnings ratio than Osmotica Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Summary

Osmotica Pharmaceuticals beats Urovant Sciences on 10 of the 13 factors compared between the two stocks.

Osmotica Pharmaceuticals Company Profile

Osmotica Pharmaceuticals plc, an integrated biopharmaceutical company, focuses on the development and commercialization of pharmaceutical products in the United States, Argentina, and Hungary. The company's promoted products include M-72, a methylphenidate hydrochloride extended-release tablet to treat attention deficit hyperactivity disorder (ADHD); Osmolex ER, an amantadine extended-release tablet for the treatment of Parkinson's and drug-induced extrapyramidal reactions in adults; Lorzone, a chlorzoxazone scored tablet for muscle spasms; ConZip, a tramadol hydrochloride extended-release capsule to treat pain; and Arbaclofen tablets which is in phase III clinical trial for the treatment of multiple sclerosis spasticity. It also provides women's health products, including Divigel for menopause, as well as OB Complete, a dietary supplement for prenatal, pregnancy, and postnatal periods; and RVL-1201, an oxymetazoline hydrochloride ophthalmic solution for the treatment of Blepharoptosis. In addition, the company's non-promoted products comprise methylphenidate ER tablets for ADHD; venlafaxine ER tablets to treat major depressive disorder and social anxiety disorder; hydromorphone ER for treating pain; nifedipine ER for hypertension; sodium benzoate/sodium phenylacetate for the treatment of hyperammonemia; oxybutynin ER for overactive bladder; and prescription prenatal vitamins for treating nutritional requirements during pregnancy, as well as Osmodex and other abbreviated new drug applications. Osmotica Pharmaceuticals plc is headquartered in Bridgewater, New Jersey.

Urovant Sciences Company Profile

Urovant Sciences Ltd., a clinical-stage biopharmaceutical company, focuses on developing and commercializing therapies for urologic conditions in the United States. The company's lead product candidate is vibegron, an oral small molecule beta-3 agonist for the treatment of overactive bladder (OAB), OAB in men with benign prostatic hyperplasia, and abdominal pain due to irritable bowel syndrome. It is also developing URO-902, a gene therapy for patients with OAB who have failed oral pharmacological therapy. The company was formerly known as Thalavant Sciences Ltd. and changed its name to Urovant Sciences Ltd. in January 2017. Urovant Sciences Ltd. was founded in 2016 and is based in London, the United Kingdom. Urovant Sciences Ltd. operates as a subsidiary of Sumitovant Biopharma Ltd.

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