Sucampo Pharmaceuticals (NASDAQ: SCMP) and Cerulean Pharma (NASDAQ:DARE) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitabiliy, institutional ownership, dividends, earnings, analyst recommendations and valuation.

Institutional and Insider Ownership

58.2% of Sucampo Pharmaceuticals shares are owned by institutional investors. 4.1% of Sucampo Pharmaceuticals shares are owned by company insiders. Comparatively, 28.6% of Cerulean Pharma shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Sucampo Pharmaceuticals and Cerulean Pharma, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sucampo Pharmaceuticals 0 1 5 0 2.83
Cerulean Pharma 0 3 3 0 2.50

Sucampo Pharmaceuticals currently has a consensus price target of $18.00, suggesting a potential upside of 73.08%. Cerulean Pharma has a consensus price target of $3.00, suggesting a potential downside of 1.96%. Given Sucampo Pharmaceuticals’ stronger consensus rating and higher possible upside, research analysts clearly believe Sucampo Pharmaceuticals is more favorable than Cerulean Pharma.

Profitability

This table compares Sucampo Pharmaceuticals and Cerulean Pharma’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sucampo Pharmaceuticals -61.99% 56.58% 15.47%
Cerulean Pharma N/A -202.95% -89.43%

Earnings and Valuation

This table compares Sucampo Pharmaceuticals and Cerulean Pharma’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Sucampo Pharmaceuticals $247.08 million 1.94 $107.84 million ($3.29) -3.16
Cerulean Pharma N/A N/A N/A N/A N/A

Sucampo Pharmaceuticals has higher revenue and earnings than Cerulean Pharma.

Risk & Volatility

Sucampo Pharmaceuticals has a beta of 1.48, meaning that its share price is 48% more volatile than the S&P 500. Comparatively, Cerulean Pharma has a beta of 2.56, meaning that its share price is 156% more volatile than the S&P 500.

Summary

Sucampo Pharmaceuticals beats Cerulean Pharma on 7 of the 10 factors compared between the two stocks.

About Sucampo Pharmaceuticals

Sucampo Pharmaceuticals, Inc. is a biopharmaceutical company. The Company is focused on the development and commercialization of pharmaceutical products. Its primary focus areas are gastroenterology, ophthalmology and oncology-related disorders. Its product candidates include VTS-270, Lubiprostone (AMITIZA), Unoprostone is opropyl (RESCULA) and CPP-1X/sulindac combination product. VTS-270 is an investigational drug under clinical study for the treatment of Niemann-Pick Disease Type C-1, an ultra-orphan, progressive and fatal disease. AMITIZA is a ClC-2 chloride channel activator, which has been approved for three indications that cover distinct patient types: chronic idiopathic constipation, irritable bowel syndrome with constipation, and opioid-induced constipation. RESCULA is a Big Potassium channel activator used to lower intraocular pressure. CPP-1X/sulindac combination product is meant for the treatment of familial adenomatous polyposis (FAP).

About Cerulean Pharma

Dare Bioscience, Inc., formerly Cerulean Pharma Inc., is a healthcare company. The Company is focused on the development and commercialization of products in women’s reproductive health. Its lead product candidate is Ovaprene, a clinical stage, non-hormonal contraceptive ring. The Company is developing Ovaprene to provide protection over multiple weeks of use and require no intervention at the time of intercourse. Ovaprene has a custom intravaginal ring design, with a permeable mesh in the center of the ring that creates a partial barrier to sperm, and a mechanism to release locally acting spermiostatic agents through the ring. The combination of these two complementary approaches produces attractive contraceptive efficacy outcomes that are consistent with the effective barrier option, the diaphragm, and short-acting hormonal options, such as oral pill, patches and vaginal ring.

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