Assembly Biosciences (NASDAQ:ASMB – Get Free Report) and Sol-Gel Technologies (NASDAQ:SLGL – Get Free Report) are both small-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, risk, analyst recommendations and institutional ownership.
Profitability
This table compares Assembly Biosciences and Sol-Gel Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Assembly Biosciences | -103.65% | -59.01% | -28.61% |
| Sol-Gel Technologies | -47.37% | -33.61% | -26.27% |
Valuation and Earnings
This table compares Assembly Biosciences and Sol-Gel Technologies”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Assembly Biosciences | $28.52 million | 16.29 | -$40.18 million | ($4.79) | -6.13 |
| Sol-Gel Technologies | $11.54 million | 16.80 | -$10.58 million | ($3.26) | -21.32 |
Sol-Gel Technologies has lower revenue, but higher earnings than Assembly Biosciences. Sol-Gel Technologies is trading at a lower price-to-earnings ratio than Assembly Biosciences, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
19.9% of Assembly Biosciences shares are held by institutional investors. Comparatively, 26.2% of Sol-Gel Technologies shares are held by institutional investors. 5.1% of Assembly Biosciences shares are held by company insiders. Comparatively, 66.5% of Sol-Gel Technologies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of recent ratings and target prices for Assembly Biosciences and Sol-Gel Technologies, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Assembly Biosciences | 1 | 1 | 6 | 0 | 2.63 |
| Sol-Gel Technologies | 0 | 2 | 1 | 0 | 2.33 |
Assembly Biosciences currently has a consensus price target of $41.00, indicating a potential upside of 39.60%. Sol-Gel Technologies has a consensus price target of $50.00, indicating a potential downside of 28.06%. Given Assembly Biosciences’ stronger consensus rating and higher possible upside, equities analysts plainly believe Assembly Biosciences is more favorable than Sol-Gel Technologies.
Risk and Volatility
Assembly Biosciences has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500. Comparatively, Sol-Gel Technologies has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500.
Summary
Sol-Gel Technologies beats Assembly Biosciences on 9 of the 14 factors compared between the two stocks.
About Assembly Biosciences
Assembly Biosciences, Inc., a biotechnology company, develops therapeutic candidates for the treatment of viral diseases. It develops ABI-5366, a long-acting herpes simplex virus (HSV) helicase-primase inhibitor that is in Phase 1a/1b clinical trial to treat recurrent genital herpes; ABI-1179, which is in Phase 1a/1b clinical trial for the treatment of recurrent genital herpes; and ABI-6250, a small molecule orally bioavailable hepatitis delta virus entry inhibitor that is in Phase 1a clinical trial. The company also develops ABI-4334, a next-generation capsid assembly modulator, which is in Phase 1b clinical trial for the treatment of hepatitis B virus (HBV). In addition, it develops an oral non-nucleoside polymerase inhibitor targeting transplant-related herpesviruses; and a small molecule interferon-a receptor agonist targeting HBV and HDV. The company has collaboration agreements with Gilead Sciences, Inc. and BeiGene, Ltd. The company was formerly known as Ventrus Biosciences, Inc. and changed its name to Assembly Biosciences, Inc. in June 2014. Assembly Biosciences, Inc. was incorporated in 2005 and is headquartered in South San Francisco, California.
About Sol-Gel Technologies
Sol-Gel Technologies Ltd., together with its subsidiary Sol-Gel Technologies Inc., develops topical dermatological drugs for patients with severe skin conditions in Israel. The company offers Twyneo, a once-daily, non-antibiotic topical cream for the treatment of acne vulgaris; and Epsolay, a once-daily topical cream for the treatment of papulopustular (subtype II) rosacea. It also develops SGT-610 that is in Phase 3 clinical trials for the treatment of Gorlin Syndrome; and SGT-210, which has completed Phase I clinical trial, to treat rare hyperkeratinization disorders, such as Darier, PC, PPK, Olmsted, etc. In addition, the company is also involved in the development of generic topical dermatological drug products. It has collaboration with Padagis Israel Pharmaceuticals Ltd; and license agreements with Galderma Holding SA and Searchlight Pharma Inc. Sol-Gel Technologies Ltd. was incorporated in 1997 and is headquartered in Ness Ziona, Israel.
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