Critical Review: Chiasma (CHMA) & Ocera Therapeutics (OCRX)
Chiasma (NASDAQ: CHMA) and Ocera Therapeutics (NASDAQ:OCRX) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, valuation, institutional ownership and analyst recommendations.
Institutional & Insider Ownership
50.4% of Chiasma shares are owned by institutional investors. Comparatively, 20.3% of Ocera Therapeutics shares are owned by institutional investors. 3.8% of Chiasma shares are owned by insiders. Comparatively, 7.2% of Ocera Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Chiasma and Ocera Therapeutics’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Ocera Therapeutics||$550,000.00||50.61||-$24.06 million||($1.05)||-1.00|
Ocera Therapeutics has higher revenue and earnings than Chiasma. Chiasma is trading at a lower price-to-earnings ratio than Ocera Therapeutics, indicating that it is currently the more affordable of the two stocks.
This table compares Chiasma and Ocera Therapeutics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
Chiasma has a beta of 1.38, suggesting that its stock price is 38% more volatile than the S&P 500. Comparatively, Ocera Therapeutics has a beta of 2.31, suggesting that its stock price is 131% more volatile than the S&P 500.
This is a summary of recent ratings and price targets for Chiasma and Ocera Therapeutics, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ocera Therapeutics has a consensus price target of $4.50, indicating a potential upside of 328.57%. Given Ocera Therapeutics’ stronger consensus rating and higher possible upside, analysts plainly believe Ocera Therapeutics is more favorable than Chiasma.
Ocera Therapeutics beats Chiasma on 8 of the 11 factors compared between the two stocks.
Chiasma Company Profile
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.
Ocera Therapeutics Company Profile
Ocera Therapeutics, Inc. is a clinical-stage biopharmaceutical company. The Company is focused on acute and chronic orphan liver diseases. The Company is focused on the development and commercialization of its clinical candidate, OCR-002, for the treatment of hepatic encephalopathy (HE). OCR-002 is a molecule, ornithine phenylacetate, which functions as an ammonia scavenger. It is conducting a randomized, placebo-controlled double blind Phase IIb clinical trial to evaluate the efficacy of intravenous administration of OCR-002 IV formulation in reducing the severity of HE symptoms among HE patients. The Company also conducted a Phase IIa investigator-sponsored trial of OCR-002 in Spain in patients with upper gastrointestinal bleeding associated with liver cirrhosis. It is developing an oral form of OCR-002 to provide continuity of care for HE patients, where the intravenous form is used for hospital-based acute care and the oral form for chronic maintenance care post discharge.
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