Dicerna Pharmaceuticals (NASDAQ: DRNA) and Auris Medical (NASDAQ:EARS) are both small-cap healthcare companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, institutional ownership, valuation and profitability.

Profitability

This table compares Dicerna Pharmaceuticals and Auris Medical’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dicerna Pharmaceuticals -5,895.26% -293.25% -87.25%
Auris Medical N/A -343.01% -80.81%

Analyst Ratings

This is a breakdown of current recommendations for Dicerna Pharmaceuticals and Auris Medical, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dicerna Pharmaceuticals 0 1 3 0 2.75
Auris Medical 0 0 2 0 3.00

Dicerna Pharmaceuticals presently has a consensus target price of $7.00, indicating a potential downside of 16.86%. Auris Medical has a consensus target price of $4.50, indicating a potential upside of 837.50%. Given Auris Medical’s stronger consensus rating and higher possible upside, analysts clearly believe Auris Medical is more favorable than Dicerna Pharmaceuticals.

Institutional and Insider Ownership

21.9% of Dicerna Pharmaceuticals shares are owned by institutional investors. Comparatively, 25.2% of Auris Medical shares are owned by institutional investors. 29.4% of Dicerna Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Dicerna Pharmaceuticals has a beta of 2.84, meaning that its stock price is 184% more volatile than the S&P 500. Comparatively, Auris Medical has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500.

Valuation and Earnings

This table compares Dicerna Pharmaceuticals and Auris Medical’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dicerna Pharmaceuticals $290,000.00 1,499.34 -$59.51 million ($3.43) -2.45
Auris Medical N/A N/A -$31.13 million ($0.65) -0.74

Auris Medical has lower revenue, but higher earnings than Dicerna Pharmaceuticals. Dicerna Pharmaceuticals is trading at a lower price-to-earnings ratio than Auris Medical, indicating that it is currently the more affordable of the two stocks.

Summary

Auris Medical beats Dicerna Pharmaceuticals on 8 of the 13 factors compared between the two stocks.

Dicerna Pharmaceuticals Company Profile

Dicerna Pharmaceuticals, Inc. is a ribonucleic acid (RNA) interference-based biopharmaceutical company. The Company operates in the segment of discovery, research and development of treatments based on its RNA interference (RNAi) technology platform. The Company is focused on the discovery and development of treatments for rare inherited diseases involving the liver and for cancers that are genetically defined. The Company uses its RNAi technology platform to build a pipeline in these therapeutic areas. The Company develops dacryocystorhinostomy (DCR)-Primary Hyperoxaluria Type 1 (PH1) for the treatment of PH1 by targeting the gene encoding the liver enzyme glycolate oxidase. The Company uses its dicer substrate RNA (DsiRNA)-EX Conjugate technology to develop a subcutaneously injected treatment for PH1. The Company develops DCR-MYC for the treatment of MYC-related cancers, including hepatocellular carcinoma (HCC) and pancreatic neuroendocrine tumors (PNET).

Auris Medical Company Profile

Auris Medical Holding AG is a holding and clinical-stage biopharmaceutical company focused on the development of products for the treatment of inner ear disorders. Its advanced product candidate, AM-101, is in Phase III clinical development for acute inner ear tinnitus under a special protocol assessment (SPA) from the United States Food and Drug Administration. Its second product candidate, AM-111, is being developed for the treatment of acute sensorineural hearing loss (ASNHL). It intends to conduct over two pivotal Phase III trials in the treatment of idiopathic sudden SNHL (ISSNHL), titled Acute Inner Ear Hearing Loss (HEALOS) and Acute Sudden Sensorineural Hearing Loss Treatment (ASSENT). AM-111 received orphan drug designation for the treatment of ASNHL from the United States Food and Drug Administration, and the European Union agency. It intends to conduct a Phase II trial in the treatment of surgery-induced hearing loss (REACH).

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