Collegium Pharmaceutical (NASDAQ: COLL) and Emergent Biosolutions (NYSE:EBS) are both small-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.

Institutional & Insider Ownership

83.1% of Collegium Pharmaceutical shares are held by institutional investors. Comparatively, 85.7% of Emergent Biosolutions shares are held by institutional investors. 25.8% of Collegium Pharmaceutical shares are held by company insiders. Comparatively, 16.5% of Emergent Biosolutions shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Collegium Pharmaceutical and Emergent Biosolutions’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Collegium Pharmaceutical $7.44 million 39.50 -$97.95 million ($3.66) -2.72
Emergent Biosolutions $512.21 million 3.27 $159.99 million $1.46 27.81

Emergent Biosolutions has higher revenue and earnings than Collegium Pharmaceutical. Collegium Pharmaceutical is trading at a lower price-to-earnings ratio than Emergent Biosolutions, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Collegium Pharmaceutical has a beta of -0.11, suggesting that its stock price is 111% less volatile than the S&P 500. Comparatively, Emergent Biosolutions has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500.

Profitability

This table compares Collegium Pharmaceutical and Emergent Biosolutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Collegium Pharmaceutical -1,319.39% -93.73% -74.81%
Emergent Biosolutions 13.42% 14.50% 9.00%

Analyst Recommendations

This is a summary of recent recommendations for Collegium Pharmaceutical and Emergent Biosolutions, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Collegium Pharmaceutical 0 0 5 0 3.00
Emergent Biosolutions 0 1 2 0 2.67

Collegium Pharmaceutical presently has a consensus price target of $20.00, suggesting a potential upside of 101.21%. Emergent Biosolutions has a consensus price target of $45.00, suggesting a potential upside of 10.84%. Given Collegium Pharmaceutical’s stronger consensus rating and higher probable upside, equities analysts plainly believe Collegium Pharmaceutical is more favorable than Emergent Biosolutions.

Summary

Emergent Biosolutions beats Collegium Pharmaceutical on 8 of the 13 factors compared between the two stocks.

Collegium Pharmaceutical Company Profile

Collegium Pharmaceutical, Inc. is a specialty pharmaceutical company. The Company is engaged in developing and commercializing abuse-deterrent products that incorporate its DETERx platform technology for the treatment of chronic pain and other diseases. Its products include Xtampza ER and ONSOLIS. Its DETERx platform provides extended-release drug delivery, while safeguarding against common methods of abuse and tampering, including crushing, chewing, and heating and injecting. Xtampza ER is designed to provide adequate pain control while maintaining its extended-release drug release profile after being subjected to common methods of abuse and accidental misuse. ONSOLIS is a Transmucosal Immediate-Release Fentanyl (TIRF) film indicated for the management of breakthrough pain in cancer patients (BTPc), 18 years of age and older, who are already receiving and who are tolerant to opioid therapy for their underlying persistent cancer pain.

Emergent Biosolutions Company Profile

Emergent BioSolutions Inc. is a life sciences company. The Company focuses on protecting and enhancing life by providing specialty products for civilian and military populations that address accidental, intentional and naturally emerging public health threats. It focuses on developing, manufacturing and commercializing medical countermeasures that address public health threats (PHTs). The PHTs operates through two categories: Chemical, Biological, Radiological and Nuclear, as well as explosive-related threats and emerging infectious diseases. It operates through four business units: Vaccines and Anti-infectives; Antibody Therapeutics; Devices, and Contract Manufacturing. Vaccines and Anti-infectives business unit consists of BioThrax, which is for the general use prophylaxis and post-exposure prophylaxis of anthrax disease. Devices business unit consists of marketed products, such as Reactive Skin Decontamination Lotion Kit (RSDL) and Trobigard (atropine sulfate, obidoxime chloride).

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