Concert Pharmaceuticals (NASDAQ: CNCE) and Esperion Therapeutics (NASDAQ:ESPR) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.
This table compares Concert Pharmaceuticals and Esperion Therapeutics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Concert Pharmaceuticals has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500. Comparatively, Esperion Therapeutics has a beta of 2.64, indicating that its share price is 164% more volatile than the S&P 500.
This is a breakdown of recent ratings and price targets for Concert Pharmaceuticals and Esperion Therapeutics, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Concert Pharmaceuticals presently has a consensus target price of $24.00, indicating a potential upside of 18.69%. Esperion Therapeutics has a consensus target price of $76.33, indicating a potential upside of 13.68%. Given Concert Pharmaceuticals’ higher probable upside, equities research analysts clearly believe Concert Pharmaceuticals is more favorable than Esperion Therapeutics.
Institutional and Insider Ownership
67.2% of Concert Pharmaceuticals shares are held by institutional investors. Comparatively, 92.9% of Esperion Therapeutics shares are held by institutional investors. 10.1% of Concert Pharmaceuticals shares are held by insiders. Comparatively, 32.5% of Esperion Therapeutics shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Concert Pharmaceuticals and Esperion Therapeutics’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Concert Pharmaceuticals||$170,000.00||2,708.29||-$50.72 million||$3.72||5.44|
|Esperion Therapeutics||N/A||N/A||-$74.97 million||($6.86)||-9.79|
Concert Pharmaceuticals has higher revenue and earnings than Esperion Therapeutics. Esperion Therapeutics is trading at a lower price-to-earnings ratio than Concert Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Concert Pharmaceuticals beats Esperion Therapeutics on 7 of the 12 factors compared between the two stocks.
About Concert Pharmaceuticals
Concert Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company. The Company is engaged in the discovery and development of small molecule drugs. The Company operates through the development of pharmaceutical products on its own behalf or in collaboration with others. The Company’s deuterated chemical entity platform (DCE Platform), has potential across various therapeutic areas. Its product candidates include AVP-786, CTP-656, CTP-730, CTP-543 and JZP-386. The Company’s product candidate, CTP-656, is a next generation potentiator that it is initially developing for the treatment of cystic fibrosis in patients having gating mutations, including the G551D mutation. CTP-543 was discovered by applying Concert’s deuterium chemistry technology to modify ruxolitinib. AVP-786 is a combination of a dextromethorphan and an ultra-low dose of quinidine. CTP-730 is a phosphodiesterase 4 (PDE4) inhibitor that has potential for the treatment of various inflammatory diseases.
About Esperion Therapeutics
Esperion Therapeutics, Inc. is a lipid management company. The Company is a late-stage pharmaceutical company focused on developing and commercializing once-daily, oral therapies for the treatment of patients with elevated low-density lipoprotein cholesterol (LDL-C). With a targeted mechanism of action, bempedoic acid, the Company’s lead product candidate, is an orally available, once-daily adenosine triphosphate (ATP)-citrate lyase (ACL) inhibitor that reduces cholesterol biosynthesis and lowers elevated levels of LDL-C by up-regulating the LDL receptor, but with reduced potential for muscle-related side effects. In addition to bempedoic acid as monotherapy, the Company is also developing bempedoic acid in a fixed dose combination with ezetimibe, an approved, non-statin, oral, LDL-C lowering therapy. As of December 31, 2016, the Company was engaged in conducting its global Phase III clinical development program for bempedoic acid.
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