Analyzing Auxilium Pharmaceuticals (AUXL) & Ocera Therapeutics (OCRX)

Auxilium Pharmaceuticals (NASDAQ: AUXL) and Ocera Therapeutics (NASDAQ:OCRX) are both small-cap healthcare companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, profitability, analyst recommendations, earnings, dividends and risk.

Earnings & Valuation

This table compares Auxilium Pharmaceuticals and Ocera Therapeutics’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Auxilium Pharmaceuticals N/A N/A N/A ($3.27) -11.15
Ocera Therapeutics $610,000.00 77.79 -$26.89 million ($0.97) -1.85

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

Profitability

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

Net Margins Return on Equity Return on Assets
Auxilium Pharmaceuticals -29.78% -76.75% -11.59%
Ocera Therapeutics N/A -383.51% -134.92%

Analyst Recommendations

This is a summary of current ratings and price targets for Auxilium Pharmaceuticals and Ocera Therapeutics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Auxilium Pharmaceuticals 0 0 0 0 N/A
Ocera Therapeutics 0 3 2 0 2.40

Ocera Therapeutics has a consensus target price of $4.19, indicating a potential upside of 133.94%. Given Ocera Therapeutics’ higher probable upside, analysts plainly believe Ocera Therapeutics is more favorable than Auxilium Pharmaceuticals.

Volatility and Risk

Auxilium Pharmaceuticals has a beta of 0.66, indicating that its share price is 34% less volatile than the S&P 500. Comparatively, Ocera Therapeutics has a beta of 2.46, indicating that its share price is 146% more volatile than the S&P 500.

Insider and Institutional Ownership

17.7% 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, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Ocera Therapeutics beats Auxilium Pharmaceuticals on 9 of the 11 factors compared between the two stocks.

About Auxilium Pharmaceuticals

Auxilium Pharmaceuticals, Inc. is a specialty biopharmaceutical company that focuses on developing and marketing products to predominantly specialist audiences. Its core therapeutic focus continues to be in the area of urology, with an anchor position in men’s healthcare. The company’s products include Testim (testosterone gel) and testosterone gel are indicated for testosterone replacement therapy in adult males for conditions associated with a deficiency or absence of endogenous testosterone; TESTOPEL offers men an option that provides a long-acting androgenic effect; Striant (testosterone buccal system) CIII is indicated for replacement therapy in adult males for conditions associated with a deficiency or absence of endogenous testosterone; STENDRA is a phosphodiesterase 5 (PDE5) inhibitor indicated for the treatment of erectile dysfunction; among others.

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.

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