Sucampo Pharmaceuticals (NASDAQ: SCMP) and Synergy Pharmaceuticals (NASDAQ:SGYP) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, profitabiliy, dividends, institutional ownership, earnings and valuation.

Earnings & Valuation

This table compares Sucampo Pharmaceuticals and Synergy Pharmaceuticals’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Sucampo Pharmaceuticals $239.13 million 1.90 $128.05 million $0.61 16.07
Synergy Pharmaceuticals $97,999.00 9,342.37 -$180.11 million ($1.06) -3.84

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

Profitability

This table compares Sucampo Pharmaceuticals and Synergy Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sucampo Pharmaceuticals 11.36% 43.27% 13.33%
Synergy Pharmaceuticals N/A -404.54% -158.66%

Volatility & Risk

Sucampo Pharmaceuticals has a beta of 1.4, indicating that its stock price is 40% more volatile than the S&P 500. Comparatively, Synergy Pharmaceuticals has a beta of 1016.65, indicating that its stock price is 101,565% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Sucampo Pharmaceuticals and Synergy Pharmaceuticals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sucampo Pharmaceuticals 0 1 5 0 2.83
Synergy Pharmaceuticals 1 0 8 0 2.78

Sucampo Pharmaceuticals presently has a consensus price target of $17.17, indicating a potential upside of 75.17%. Synergy Pharmaceuticals has a consensus price target of $12.06, indicating a potential upside of 196.38%. Given Synergy Pharmaceuticals’ higher possible upside, analysts clearly believe Synergy Pharmaceuticals is more favorable than Sucampo Pharmaceuticals.

Institutional and Insider Ownership

57.6% of Sucampo Pharmaceuticals shares are held by institutional investors. Comparatively, 67.6% of Synergy Pharmaceuticals shares are held by institutional investors. 4.1% of Sucampo Pharmaceuticals shares are held by insiders. Comparatively, 3.6% of Synergy Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Sucampo Pharmaceuticals beats Synergy Pharmaceuticals on 8 of the 13 factors compared between the two stocks.

About Sucampo Pharmaceuticals

Sucampo Pharmaceuticals, Inc. is a biopharmaceutical company. The Company is focused on the development and commercialization of pharmaceutical products. Its primary focus areas are gastroenterology, ophthalmology and oncology-related disorders. Its product candidates include VTS-270, Lubiprostone (AMITIZA), Unoprostone is opropyl (RESCULA) and CPP-1X/sulindac combination product. VTS-270 is an investigational drug under clinical study for the treatment of Niemann-Pick Disease Type C-1, an ultra-orphan, progressive and fatal disease. AMITIZA is a ClC-2 chloride channel activator, which has been approved for three indications that cover distinct patient types: chronic idiopathic constipation, irritable bowel syndrome with constipation, and opioid-induced constipation. RESCULA is a Big Potassium channel activator used to lower intraocular pressure. CPP-1X/sulindac combination product is meant for the treatment of familial adenomatous polyposis (FAP).

About Synergy Pharmaceuticals

Synergy Pharmaceuticals Inc. is a biopharmaceutical company focused on the development and commercialization of gastrointestinal (GI) therapies. The Company’s product candidates include TRULANCE (plecanatide) and dolcanatide. The Company is engaged in the discovery, research and development efforts around analogs of uroguanylin for the treatment of GI diseases and disorders. TRULANCE is designed to replicate the function of uroguanylin. Dolcanatide is being evaluated for inflammatory bowel disease (IBD). TRULANCE is approved in the United States under the trademark name TRULANCE, for the treatment of adults with chronic idiopathic constipation (CIC). In addition, it is developing TRULANCE for the treatment of adults with irritable bowel syndrome with constipation (IBS-C). Dolcanatide is designed to be an analog of uroguanylin with enhanced resistance to standard digestive breakdown by proteases in the intestine.

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