Ardelyx (NASDAQ:ARDX) versus Collegium Pharmaceutical (NASDAQ:COLL) Head-To-Head Comparison

Collegium Pharmaceutical (NASDAQ:COLL) and Ardelyx (NASDAQ:ARDX) are both small-cap healthcare companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, valuation, earnings, profitability, institutional ownership and dividends.

Volatility & Risk

Collegium Pharmaceutical has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500. Comparatively, Ardelyx has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500.

Valuation and Earnings

This table compares Collegium Pharmaceutical and Ardelyx”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Collegium Pharmaceutical	$780.57 million	0.91	$62.87 million	$1.24	17.61
Ardelyx	$407.32 million	2.08	-$61.60 million	($0.22)	-15.45

Collegium Pharmaceutical has higher revenue and earnings than Ardelyx. Ardelyx is trading at a lower price-to-earnings ratio than Collegium Pharmaceutical, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Collegium Pharmaceutical and Ardelyx’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Collegium Pharmaceutical	5.93%	91.43%	15.57%
Ardelyx	-12.35%	-36.00%	-10.77%

Institutional and Insider Ownership

58.9% of Ardelyx shares are held by institutional investors. 1.9% of Collegium Pharmaceutical shares are held by insiders. Comparatively, 5.3% of Ardelyx shares are held 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.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Collegium Pharmaceutical and Ardelyx, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Collegium Pharmaceutical	1	2	5	0	2.50
Ardelyx	2	0	9	1	2.75

Collegium Pharmaceutical currently has a consensus target price of $48.50, indicating a potential upside of 122.07%. Ardelyx has a consensus target price of $13.90, indicating a potential upside of 308.82%. Given Ardelyx’s stronger consensus rating and higher possible upside, analysts plainly believe Ardelyx is more favorable than Collegium Pharmaceutical.

Summary

Collegium Pharmaceutical beats Ardelyx on 8 of the 15 factors compared between the two stocks.

About Collegium Pharmaceutical

Collegium Pharmaceutical, Inc., a specialty pharmaceutical company, engages in the development and commercialization of medicines for pain management. Its portfolio includes Xtampza ER, an abuse-deterrent, extended-release, and oral formulation of oxycodone for the management of pain severe enough to require daily, around-the-clock, long-term opioid treatment; Nucynta ER and Nucynta IR, which are extended-release and immediate-release formulations of tapentadol, indicated for the management of acute, severe, and persistent pain; Belbuca, a buccal film that contains buprenorphine; and Symproic, an oral formulation of naldemedine for the treatment of opioid-induced constipation in adult patients with chronic non-cancer pain. The company was formerly known as Collegium Pharmaceuticals, Inc. and changed its name to Collegium Pharmaceutical, Inc. in October 2003. Collegium Pharmaceutical, Inc. was incorporated in 2002 and is headquartered in Stoughton, Massachusetts.

About Ardelyx

Ardelyx, Inc., a biopharmaceutical company, discovers, develops, and commercializes medicines to treat gastrointestinal and cardiorenal therapeutic areas in the United States and internationally. The company’s lead product candidate is tenapanor for the treatment of patients with irritable bowel syndrome with constipation. It also develops XPHOZAH, which is in Phase III clinical trial to reduce serum phosphorus in adults with chronic kidney disease (CKD)on dialysis, or hyperphosphatemia; RDX013, a potassium secretagogue, for the treatment of elevated serum potassium, or hyperkalemia, a problem among patients with kidney and/or heart failure; and RDX020, for adult patients with metabolic acidosis, a serious electrolyte disorder. The company has agreements with Kyowa Kirin, Fosun Pharmaceutical Industrial Development Co. Ltd., and Knight Therapeutics, Inc. for the development and commercialization of tenapanor in their respective territories. The company was formerly known as Nteryx, Inc. and changed its name to Ardelyx, Inc. in June 2008. Ardelyx, Inc. was incorporated in 2007 and is headquartered in Waltham, Massachusetts.