Ocera Therapeutics (NASDAQ: OCRX) and Horizon Therapeutics (NASDAQ:HPTX) are both small-cap medical companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, institutional ownership, earnings and risk.

Earnings and Valuation

This table compares Ocera Therapeutics and Horizon Therapeutics’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Ocera Therapeutics $610,000.00 75.62 -$26.89 million ($0.97) -1.79
Horizon Therapeutics N/A N/A N/A ($0.03) -1,533.00

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

Analyst Recommendations

This is a breakdown of current recommendations for Ocera Therapeutics and Horizon Therapeutics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ocera Therapeutics 0 3 1 0 2.25
Horizon Therapeutics 0 0 0 0 N/A

Ocera Therapeutics currently has a consensus price target of $1.92, suggesting a potential upside of 10.15%. Given Ocera Therapeutics’ higher probable upside, research analysts plainly believe Ocera Therapeutics is more favorable than Horizon Therapeutics.

Profitability

This table compares Ocera Therapeutics and Horizon Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ocera Therapeutics N/A -228.93% -103.71%
Horizon Therapeutics 23.13% 21.30% 15.42%

Institutional & Insider Ownership

18.5% of Ocera Therapeutics shares are owned by institutional investors. 7.2% of Ocera Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Ocera Therapeutics beats Horizon Therapeutics on 5 of the 9 factors compared between the two stocks.

About Ocera Therapeutics

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.

About Horizon Therapeutics

Horizon Therapeutics, Inc., formerly Hyperion Therapeutics, Inc., is a biopharmaceutical company. The Company is engaged in the development and commercialization of therapeutics to treat disorders in the areas of orphan diseases. The Company’s products include RAVICTI (glycerol phenylbutyrate) oral liquid, BUPHENYL and AMMONAPS (sodium phenylbutyrate) tablets and powder. The Company’s products are used to lower ammonia in the blood. RAVICTI is used to treat urea cycle disorders (UCD). BUPHENYL is indicated as an adjunctive therapy in the chronic management of patients with UCDs involving deficiencies of carbamylphosphate synthetase (CPS), ornithine transcarbamylase (OTC), or argininosuccinic acid synthetase (AS). The Company sells BUPHENYL under the brand name AMMONAPS in Europe and the Middle East.

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