Cambrex Corporation (NYSE: CBM) and Marinus Pharmaceuticals (NASDAQ:MRNS) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, risk, dividends, analyst recommendations, institutional ownership and earnings.

Insider & Institutional Ownership

98.3% of Cambrex Corporation shares are held by institutional investors. Comparatively, 28.8% of Marinus Pharmaceuticals shares are held by institutional investors. 2.5% of Cambrex Corporation shares are held by insiders. Comparatively, 6.4% of Marinus Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Cambrex Corporation has a beta of 2.25, suggesting that its stock price is 125% more volatile than the S&P 500. Comparatively, Marinus Pharmaceuticals has a beta of 2.04, suggesting that its stock price is 104% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Cambrex Corporation and Marinus Pharmaceuticals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cambrex Corporation 0 0 3 0 3.00
Marinus Pharmaceuticals 0 0 1 0 3.00

Cambrex Corporation presently has a consensus target price of $65.67, suggesting a potential upside of 31.33%. Marinus Pharmaceuticals has a consensus target price of $3.00, suggesting a potential downside of 3.85%. Given Cambrex Corporation’s higher probable upside, equities research analysts plainly believe Cambrex Corporation is more favorable than Marinus Pharmaceuticals.

Valuation & Earnings

This table compares Cambrex Corporation and Marinus Pharmaceuticals’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cambrex Corporation $515.45 million 3.17 $167.23 million $2.76 18.12
Marinus Pharmaceuticals N/A N/A -$22.16 million ($1.11) -2.81

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

Profitability

This table compares Cambrex Corporation and Marinus Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cambrex Corporation 17.70% 24.25% 16.45%
Marinus Pharmaceuticals N/A -107.40% -75.54%

Summary

Cambrex Corporation beats Marinus Pharmaceuticals on 10 of the 11 factors compared between the two stocks.

Cambrex Corporation Company Profile

Cambrex Corporation (Cambrex) is a life sciences company. It provides products and services for the development and commercialization of generic therapeutics. It operates through four segments, which are manufacturing facilities that have been aggregated as a single segment. Its manufacturing facilities are owned by the subsidiaries, including Cambrex Charles City, Inc., Cambrex Karlskoga AB and Cambrex Profarmaco Milano S.r.l. Its products consist of active pharmaceutical ingredients (APIs) and pharmaceutical intermediates. It delivers services, such as custom organic synthesis and process development; current good manufacturing practices (cGMP) manufacturing of API and intermediates from grams to hundreds of kilograms; cGMP analytical services; controlled substance research and development (R&D) and manufacture, Schedule II-V, and contract research. It has API R&D and cGMP facilities in the United States and Europe. It supplies over 90 generic APIs.

Marinus Pharmaceuticals Company Profile

Marinus Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company. The Company focuses on developing and commercializing therapeutics to treat epilepsy and neuropsychiatric disorders. Its clinical-stage product candidate, ganaxolone, is a modulator being developed in various dose forms, including intravenous, oral capsule and oral liquid, intended to provide more treatment options to adult and pediatric patient populations in both acute and chronic care settings. Ganaxolone acts on the GABAA receptor, a target in the brain known for both anti seizure and anti anxiety effects through positive allosteric modulation. The Company is developing ganaxolone for multiple epilepsy and other neuropsychiatric indications, including adjunctive, or add-on, therapy for the treatment of drug-resistant focal onset seizures; status epilepticus; Fragile X Syndrome, and PCDH19 pediatric epilepsy.

Receive News & Ratings for Cambrex Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Cambrex Corporation and related companies with MarketBeat.com's FREE daily email newsletter.