Pharmacyclics (NASDAQ: PCYC) and Cara Therapeutics (NASDAQ:CARA) are both healthcare companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, profitabiliy and earnings.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Pharmacyclics and Cara Therapeutics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pharmacyclics 0 0 0 0 N/A
Cara Therapeutics 0 2 9 0 2.82

Cara Therapeutics has a consensus price target of $26.67, suggesting a potential upside of 85.70%. Given Cara Therapeutics’ higher probable upside, analysts clearly believe Cara Therapeutics is more favorable than Pharmacyclics.

Profitability

This table compares Pharmacyclics and Cara Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pharmacyclics 2.02% 1.93% 1.52%
Cara Therapeutics N/A -99.64% -85.20%

Earnings & Valuation

This table compares Pharmacyclics and Cara Therapeutics’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Pharmacyclics N/A N/A N/A N/A N/A
Cara Therapeutics $990,000.00 471.52 -$68.88 million ($2.33) -6.16

Pharmacyclics has higher revenue, but lower earnings than Cara Therapeutics.

Institutional & Insider Ownership

52.8% of Cara Therapeutics shares are held by institutional investors. 7.5% of Cara Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Cara Therapeutics beats Pharmacyclics on 5 of the 8 factors compared between the two stocks.

About Pharmacyclics

Pharmacyclics, Inc. is an integrated biopharmaceutical company engaged in developing and commercializing therapies for the treatment of cancer and immune-mediated diseases. The Company’s commercial product is IMBRUVICA (ibrutinib), which is an oral, single-agent therapy indicated for the treatment of blood cancer. The Company markets IMBRUVICA in the United States for four United States. Food and Drug Administration (FDA) approved indications for the treatment of patients with chronic lymphocytic leukemia (CLL) who have received at least one prior therapy; all lines of CLL with deletion of the short arm of chromosome 17 (del 17p CLL); mantle cell lymphoma (MCL) who have received at least one prior therapy, and all lines of Waldenstrom’s macroglobulinemia (WM). It is also pursuing the development of IMBRUVICA for Graft versus host disease (GvHD). In addition, it has a pre-clinical testing program underway to develop inhibitors of BTK for inflammatory and autoimmune diseases.

About Cara Therapeutics

Cara Therapeutics, Inc. is a clinical-stage biopharmaceutical company. The Company is focused on developing and commercializing chemical entities designed to alleviate pain and pruritus by focusing on kappa opioid receptors. It is developing a class of product candidates that target the body’s peripheral nervous system. The Company operates through the activities related to the discovery and development of therapeutics to treat serious medical conditions, including pain and pruritus. Its product candidate pipeline includes I.V. CR845 for acute pain; I.V. CR845 for uremic pruritus; Oral CR845 for acute and chronic pain, and CR701 for neuropathic and inflammatory pain. I.V. CR845 is an injectable version of peripheral kappa opioid receptor agonist, which is intended for the treatment of acute pain in an acute care setting. CR845 has exhibited anti-pruritic, or anti-itch, potency in standard preclinical models.

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