Journey Medical (NASDAQ:DERM – Get Free Report) and Heron Therapeutics (NASDAQ:HRTX – Get Free Report) are both small-cap healthcare companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, risk, analyst recommendations and profitability.
Valuation & Earnings
This table compares Journey Medical and Heron Therapeutics”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Journey Medical | $61.86 million | 3.59 | -$11.43 million | ($0.22) | -35.73 |
| Heron Therapeutics | $154.90 million | 0.42 | -$20.19 million | ($0.19) | -1.81 |
Institutional & Insider Ownership
7.2% of Journey Medical shares are owned by institutional investors. Comparatively, 80.0% of Heron Therapeutics shares are owned by institutional investors. 14.5% of Journey Medical shares are owned by company insiders. Comparatively, 6.1% of Heron Therapeutics 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.
Risk and Volatility
Journey Medical has a beta of 1.09, meaning that its share price is 9% more volatile than the S&P 500. Comparatively, Heron Therapeutics has a beta of 1.61, meaning that its share price is 61% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings for Journey Medical and Heron Therapeutics, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Journey Medical | 1 | 1 | 2 | 0 | 2.25 |
| Heron Therapeutics | 1 | 3 | 1 | 0 | 2.00 |
Journey Medical presently has a consensus price target of $14.00, suggesting a potential upside of 78.12%. Heron Therapeutics has a consensus price target of $2.00, suggesting a potential upside of 481.56%. Given Heron Therapeutics’ higher probable upside, analysts clearly believe Heron Therapeutics is more favorable than Journey Medical.
Profitability
This table compares Journey Medical and Heron Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Journey Medical | -8.95% | -20.23% | -6.60% |
| Heron Therapeutics | -22.52% | -293.02% | -10.00% |
Summary
Journey Medical beats Heron Therapeutics on 8 of the 14 factors compared between the two stocks.
About Journey Medical
Journey Medical Corporation focuses on the development and commercialization of pharmaceutical products for the treatment of dermatological conditions in the United States. The company's marketed products include Qbrexza, a medicated cloth towelette for the treatment of primary axillary hyperhidrosis; Accutane, an oral isotretinoin drug to treat severe recalcitrant nodular acne; and Amzeeq, a topical formulation of minocycline for the treatment of inflammatory lesions of non-nodular moderate to severe acne vulgaris. It also offers Zilxi, a topical minocycline treatment for inflammatory lesions of rosacea; Exelderm cream and solution an antifungal intended for topical use; Targadox, an oral doxycycline drug for adjunctive therapy for severe acne; and Luxamend, a water-based emulsion formulated to provide a moist healing environment for superficial wounds; minor cuts or scrapes; dermal ulcers; donor sites; first- and second-degree burns, including sunburns; and radiation dermatitis. In addition, the company sells sulconazole nitrate cream and solution indicated for the treatment of tinea cruris, tinea corporis, and tinea versicolor; and doxycycline hyclate tablets, as an adjunctive therapy for severe acne. The company was formerly known as Coronado Dermatology, Inc. and changed its name to Journey Medical Corporation. Journey Medical Corporation was incorporated in 2014 and is headquartered in Scottsdale, Arizona. Journey Medical Corporation is a subsidiary of Fortress Biotech, Inc.
About Heron Therapeutics
Heron Therapeutics, Inc., a commercial-stage biotechnology company, focuses on enhancing the lives of patients by developing and commercializing therapeutic that enhances medical care. The company's product candidates utilize its proprietary Biochronomer, a drug delivery technology, which delivers therapeutic levels of a range of short-acting pharmacological agents over a period from days to weeks with a single administration. It offers SUSTOL (granisetron), an extended-release injection for the prevention of acute and delayed nausea and vomiting associated with moderately emetogenic chemotherapy, or anthracycline and cyclophosphamide combination chemotherapy regimens; and CINVANTI, an intravenous formulation of aprepitant, a substance P/neurokinin-1 receptor antagonist for the prevention of acute and delayed nausea and vomiting associated with highly emetogenic cancer chemotherapy, as well as nausea and vomiting associated with moderately emetogenic cancer chemotherapy. The company is also developing ZYNRELEF, a dual-acting local anesthetic that delivers a fixed-dose combination of the local anesthetic bupivacaine and a low dose of the nonsteroidal anti-inflammatory drug meloxicam; and APONVIE, an intravenous formulation of a substance P/neurokinin-1 receptor antagonist indicated for the prevention of postoperative nausea and vomiting in adults. The company was formerly known as A.P. Pharma, Inc. and changed its name to Heron Therapeutics, Inc. in January 2014. Heron Therapeutics, Inc. was founded in 1983 and is headquartered in San Diego, California.
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