Strongbridge Biopharma (NASDAQ: SBBP) and Alimera Sciences (NASDAQ:ALIM) are both small-cap healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, dividends, valuation, earnings, analyst recommendations and profitability.

Valuation & Earnings

This table compares Strongbridge Biopharma and Alimera Sciences’ gross 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 ($3.38) -2.40
Alimera Sciences $34.33 million 2.60 -$33.17 million ($0.31) -4.16

Alimera Sciences has higher revenue and earnings than Strongbridge Biopharma. Alimera Sciences is trading at a lower price-to-earnings ratio than Strongbridge Biopharma, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Strongbridge Biopharma and Alimera Sciences’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Strongbridge Biopharma N/A -181.90% -38.62%
Alimera Sciences -55.29% N/A -28.43%

Insider and Institutional Ownership

64.0% of Strongbridge Biopharma shares are owned by institutional investors. Comparatively, 41.8% of Alimera Sciences shares are owned by institutional investors. 14.7% of Alimera Sciences shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations for Strongbridge Biopharma and Alimera Sciences, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Strongbridge Biopharma 0 0 3 0 3.00
Alimera Sciences 0 0 3 0 3.00

Strongbridge Biopharma presently has a consensus target price of $14.67, suggesting a potential upside of 81.07%. Alimera Sciences has a consensus target price of $4.00, suggesting a potential upside of 210.08%. Given Alimera Sciences’ higher probable upside, analysts clearly believe Alimera Sciences is more favorable than Strongbridge Biopharma.

Summary

Alimera Sciences beats Strongbridge Biopharma on 7 of the 10 factors compared between the two stocks.

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).

Alimera Sciences Company Profile

Alimera Sciences, Inc. (Alimera) is a pharmaceutical company. The Company is engaged in the research, development and commercialization of prescription ophthalmic pharmaceuticals. The Company operates through two segments: U.S. and International. The Company focuses on diseases affecting the back of the eye or retina. The Company’s product is ILUVIEN, which is developed to treat diabetic macular edema (DME). DME is a disease of the retina that affects individuals with diabetes and can lead to severe vision loss and blindness. In the United States, ILUVIEN is indicated for the treatment of DME in patients who have been treated with a course of corticosteroids and did not have a rise in intraocular pressure (IOP). In the European Economic Area (EEA) countries, ILUVIEN is indicated for the treatment of vision impairment associated with DME considered insufficiently responsive to available therapies.

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