Chiasma (NASDAQ: CHMA) and ChemoCentryx (NASDAQ:CCXI) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, risk, institutional ownership, earnings, dividends and analyst recommendations.

Earnings & Valuation

This table compares Chiasma and ChemoCentryx’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Chiasma N/A N/A -$29.42 million ($1.27) -1.65
ChemoCentryx $26.31 million 13.64 -$30.76 million ($0.62) -11.89

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

Profitability

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

Net Margins Return on Equity Return on Assets
Chiasma N/A -35.96% -31.97%
ChemoCentryx N/A -62.62% -20.58%

Insider and Institutional Ownership

50.4% of Chiasma shares are owned by institutional investors. Comparatively, 50.1% of ChemoCentryx shares are owned by institutional investors. 3.2% of Chiasma shares are owned by insiders. Comparatively, 26.8% of ChemoCentryx shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Chiasma and ChemoCentryx, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chiasma 1 0 0 0 1.00
ChemoCentryx 0 1 1 0 2.50

Volatility & Risk

Chiasma has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500. Comparatively, ChemoCentryx has a beta of 1.59, meaning that its share price is 59% more volatile than the S&P 500.

Summary

ChemoCentryx beats Chiasma on 7 of the 10 factors compared between the two stocks.

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.

About ChemoCentryx

ChemoCentryx, Inc. is a biopharmaceutical company. The Company is engaged in developing new medications targeted at inflammatory disorders, autoimmune diseases and cancer. Each of its drug candidates focuses on a specific chemoattractant receptor that selectively blocks its negative inflammatory or suppressive response, leaving the rest of the immune system intact. Its late stage compounds include Avacopan (CCX168) and CCX140. Avacopan (CCX168) is an orally administered complement inhibitor targeting the C5a receptor (C5aR), and is being developed for orphan and rare diseases, including anti-neutrophil cytoplasmic auto-antibody associated vasculitis (AAV); atypical hemolytic uremic syndrome (aHUS), and complement 3 glomerulopathy (C3G). CCX140 is an orally administered inhibitor of the chemokine receptor known as C-C chemokine receptor type 2 (CCR2), in development for diabetic nephropathy (DN), a form of chronic kidney disease (CKD), and for focal segmental glomerulosclerosis (FSGS).

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