Alimera Sciences (NASDAQ: ALIM) and Chiasma (NASDAQ:CHMA) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, profitabiliy, risk, dividends, institutional ownership and valuation.

Institutional and Insider Ownership

43.6% of Alimera Sciences shares are held by institutional investors. Comparatively, 52.2% of Chiasma shares are held by institutional investors. 14.0% of Alimera Sciences shares are held by insiders. Comparatively, 3.2% of Chiasma shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Alimera Sciences and Chiasma’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Alimera Sciences $35.15 million 2.58 -$21.82 million ($0.50) -2.80
Chiasma N/A N/A -$42.61 million ($2.09) -0.72

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

Risk & Volatility

Alimera Sciences has a beta of 2.16, suggesting that its share price is 116% more volatile than the S&P 500. Comparatively, Chiasma has a beta of 1.45, suggesting that its share price is 45% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Alimera Sciences and Chiasma, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alimera Sciences 0 0 2 0 3.00
Chiasma 1 0 0 0 1.00

Alimera Sciences presently has a consensus target price of $3.50, indicating a potential upside of 150.00%. Given Alimera Sciences’ stronger consensus rating and higher possible upside, analysts plainly believe Alimera Sciences is more favorable than Chiasma.

Profitability

This table compares Alimera Sciences and Chiasma’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Alimera Sciences -81.83% N/A -44.73%
Chiasma N/A -47.94% -41.80%

Summary

Alimera Sciences beats Chiasma on 9 of the 12 factors compared between the two stocks.

About Alimera Sciences

Alimera Sciences, Inc. (Alimera) is a pharmaceutical company. The Company is engaged in the research, development and commercialization of prescription ophthalmic pharmaceuticals. The Company operates through two segments: U.S. and International. The Company focuses on diseases affecting the back of the eye or retina. The Company’s product is ILUVIEN, which is developed to treat diabetic macular edema (DME). DME is a disease of the retina that affects individuals with diabetes and can lead to severe vision loss and blindness. In the United States, ILUVIEN is indicated for the treatment of DME in patients who have been treated with a course of corticosteroids and did not have a rise in intraocular pressure (IOP). In the European Economic Area (EEA) countries, ILUVIEN is indicated for the treatment of vision impairment associated with DME considered insufficiently responsive to available therapies.

About Chiasma

Chiasma, Inc. is a biopharmaceutical company. The Company is engaged in developing and commercializing oral forms of therapies that are available only by injection. Using its Transient Permeability Enhancer (TPE) technology platform, the Company is developing oral therapies. The Company has completed a Phase III clinical trial of its TPE platform-based product candidate, oral octreotide capsules (trade named as MYCAPSSA) for the treatment of acromegaly, a condition that results in the body’s production of excess growth hormone. Octreotide is an analog of somatostatin, a natural inhibitor of growth hormone secretion. The Company is developing octreotide capsules as a liquid-filled solid gelatin capsule formulation, which is intended to be taken over twice a day. The Company’s TPE technology enhances the absorption through the intestinal wall of drugs. The Company also focuses on developing CH2 for Orphan indication.

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