3SBio (NASDAQ: SSRX) and Strongbridge Biopharma (NASDAQ:SBBP) are both small-cap biopharmaceuticals companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.
Risk and Volatility
3SBio has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500. Comparatively, Strongbridge Biopharma has a beta of 2.6, suggesting that its stock price is 160% more volatile than the S&P 500.
57.5% of Strongbridge Biopharma shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This table compares 3SBio and Strongbridge Biopharma’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and recommmendations for 3SBio and Strongbridge Biopharma, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Strongbridge Biopharma has a consensus target price of $14.67, suggesting a potential upside of 90.48%. Given Strongbridge Biopharma’s higher probable upside, analysts plainly believe Strongbridge Biopharma is more favorable than 3SBio.
Valuation and Earnings
This table compares 3SBio and Strongbridge Biopharma’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Strongbridge Biopharma||N/A||N/A||-$48.59 million||($3.40)||-2.26|
Strongbridge Biopharma is trading at a lower price-to-earnings ratio than 3SBio, indicating that it is currently the more affordable of the two stocks.
3SBio Company Profile
3SBio Inc. is a biotechnology company in the People’s Republic of China with research and development, manufacturing, and marketing capabilities focusing on bio-pharmaceutical products. The Company recombinant, or genetically engineered, protein-based products and product candidates are designed to address markets with unmet medical needs in nephrology, oncology, supportive cancer care, inflammation and infectious diseases. Its principal products are EPIAO and TPIAO. In addition, it has two legacy products, Intefen and Inleusin; and an in-licensed product, Iron Sucrose Supplement. The Company focuses on its research and development efforts on both novel and validated protein-based therapeutics for the treatment of diseases in the areas of nephrology, oncology, supportive cancer care, inflammation and infectious diseases, and other selected areas. In May 2013, the Company merged with Decade Sunshine Limited and Decade Sunshine Merger Sub.
Strongbridge Biopharma Company Profile
Strongbridge Biopharma plc is a global commercial-stage biopharmaceutical company. The Company is focused on the development and commercialization of therapies for a range of diseases. The Company’s commercial product, KEVEYIS (dichlorphenamide), is indicated for the treatment of hyperkalemic, hypokalemic and related variants of primary periodic paralysis. The United States Food and Drug Administration (FDA) has granted orphan drug designation for KEVEYIS. The Company has a clinical-stage pipeline of therapies for endocrine diseases. The Company’s lead compounds include COR-003 (levoketoconazole), a cortisol synthesis inhibitor, and COR-005 (veldoreotide), a somatostatin analog (SSA). The Company is studying COR-003 for the treatment of endogenous Cushing’s syndrome. It is investigating COR-005 for the treatment of acromegaly. Both COR-003 and COR-005 have received orphan designation from the FDA and the European Medicines Agency (EMA).
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