Head-To-Head Contrast: Ocular Therapeutix (NASDAQ:OCUL) and Ascend Wellness (OTCMKTS:AAWH)

Ascend Wellness (OTCMKTS:AAWH) and Ocular Therapeutix (NASDAQ:OCUL) are both small-cap healthcare companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, earnings, risk, dividends, analyst recommendations, institutional ownership and valuation.

Volatility and Risk

Ascend Wellness has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500. Comparatively, Ocular Therapeutix has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500.

Valuation and Earnings

This table compares Ascend Wellness and Ocular Therapeutix”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ascend Wellness	$500.58 million	0.16	-$118.19 million	($0.57)	-0.71
Ocular Therapeutix	$51.95 million	28.83	-$265.94 million	($1.42)	-4.80

Ascend Wellness has higher revenue and earnings than Ocular Therapeutix. Ocular Therapeutix is trading at a lower price-to-earnings ratio than Ascend Wellness, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Ascend Wellness and Ocular Therapeutix’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ascend Wellness	-23.31%	N/A	-10.85%
Ocular Therapeutix	-579.10%	-59.89%	-45.99%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Ascend Wellness and Ocular Therapeutix, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ascend Wellness	0	1	0	0	2.00
Ocular Therapeutix	1	1	8	1	2.82

Ocular Therapeutix has a consensus target price of $23.33, suggesting a potential upside of 242.13%. Given Ocular Therapeutix’s stronger consensus rating and higher possible upside, analysts plainly believe Ocular Therapeutix is more favorable than Ascend Wellness.

Institutional and Insider Ownership

17.3% of Ascend Wellness shares are held by institutional investors. Comparatively, 59.2% of Ocular Therapeutix shares are held by institutional investors. 21.9% of Ascend Wellness shares are held by company insiders. Comparatively, 3.1% of Ocular Therapeutix shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Ascend Wellness beats Ocular Therapeutix on 8 of the 14 factors compared between the two stocks.

About Ascend Wellness

Ascend Wellness Holdings, Inc. engages in the cultivation, manufacture, and distribution of cannabis consumer packaged goods in the United States. The company offers flower, pre-rolls, concentrates, vapes, edibles, tinctures, and other cannabis-related products under the Common Goods, SimplyHerb, Ozone, Ozone Reserve, Royale, Tunnel Vision, Miss Grass, Lowell Smokes, Edie Parker, 1906, and AiroPro brands. It also owns, operates, and manages cannabis cultivation facilities and dispensaries. The company sells its products through company-owned retail stores and third-party licensed retail cannabis stores. Ascend Wellness Holdings, Inc. was incorporated in 2018 and is headquartered in New York, New York.

About Ocular Therapeutix

Ocular Therapeutix, Inc., a biopharmaceutical company, focuses on the formulation, development, and commercialization of therapies for diseases and conditions of the eye using its bioresorbable hydrogel-based formulation technology in the United States. The company markets DEXTENZA, a dexamethasone ophthalmic insert to treat post-surgical ocular inflammation and pain following ophthalmic surgery, as well as allergic conjunctivitis. It is developing AXPAXLI, an axitinib intravitreal implant that is in phase 3 trials for the treatment of wet age-related macular degeneration and other retinal diseases; PAXTRAVA, a travoprost intracameral implant, which is in phase 2 clinical trials for the treatment of open-angle glaucoma or ocular hypertension; OTX-CSI, a cyclosporine intracanalicular insert that has completed phase 2 clinical trials for the treatment of dry eye disease; and OTX-DED, a dexamethasone intracanalicular insert, which is in phase 2 clinical trials for the short-term treatment of the signs and symptoms of dry eye disease. In addition, the company offers modulator for intermediate and late dry age-related macular degeneration; and gene delivery for inherited retinal degenerations and protein biofactory indications. The company has a strategic collaboration with Regeneron Pharmaceuticals, Inc. (Regeneron) for the development and commercialization of products using the company’s sustained-release hydrogel in combination with Regeneron’s large molecule VEGF-targeting compounds for the treatment of retinal diseases; and AffaMed Therapeutics Limited for the development and commercialization of DEXTENZA and OTX-TIC. Ocular Therapeutix, Inc. was incorporated in 2006 and is headquartered in Bedford, Massachusetts.