Spectrum Pharmaceuticals (NASDAQ: SPPI) and BioLineRx (NASDAQ:BLRX) are both small-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, valuation, profitability, dividends, risk and institutional ownership.

Analyst Ratings

This is a breakdown of recent recommendations for Spectrum Pharmaceuticals and BioLineRx, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Spectrum Pharmaceuticals 0 0 3 0 3.00
BioLineRx 0 0 5 0 3.00

Spectrum Pharmaceuticals presently has a consensus target price of $12.67, indicating a potential upside of 28.60%. BioLineRx has a consensus target price of $3.20, indicating a potential upside of 185.69%. Given BioLineRx’s higher possible upside, analysts clearly believe BioLineRx is more favorable than Spectrum Pharmaceuticals.

Risk and Volatility

Spectrum Pharmaceuticals has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500. Comparatively, BioLineRx has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500.

Profitability

This table compares Spectrum Pharmaceuticals and BioLineRx’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Spectrum Pharmaceuticals -59.33% -30.95% -16.67%
BioLineRx N/A -46.00% -41.39%

Insider and Institutional Ownership

66.1% of Spectrum Pharmaceuticals shares are held by institutional investors. Comparatively, 32.3% of BioLineRx shares are held by institutional investors. 13.3% of Spectrum Pharmaceuticals shares are held by insiders. Comparatively, 1.1% of BioLineRx shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Spectrum Pharmaceuticals and BioLineRx’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Spectrum Pharmaceuticals $132.03 million 5.86 -$44.85 million ($0.99) -9.95
BioLineRx N/A N/A -$18.91 million ($0.34) -3.29

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

Summary

Spectrum Pharmaceuticals beats BioLineRx on 6 of the 11 factors compared between the two stocks.

Spectrum Pharmaceuticals Company Profile

Spectrum Pharmaceuticals, Inc. is a biotechnology company. The Company operates through developing and commercializing oncology and hematology drug products segment. It has a product portfolio consisting of both commercial stage and development stage products that address various cancer types. The Company has six approved oncology/hematology products that target different types of cancer, including non-Hodgkin’s lymphoma (NHL), advanced metastatic colorectal cancer (mCRC), acute lymphoblastic leukemia (ALL) and multiple myeloma (MM). It also has three drugs in mid-to-late stage development, which include ROLONTIS for chemotherapy-induced neutropenia; QAPZOLA for immediate intravesical instillation in post-transurethral resection of bladder tumors in patients with non-muscle invasive bladder cancer (NMIBC), and POZIOTINIB, a pan-human epidermal growth factor receptor (HER) inhibitor used in the treatment of patients with a range of solid tumors, including breast and lung cancer.

BioLineRx Company Profile

BioLine RX Ltd is an Israel-based company engaged in the development of therapeutics, from preclinical-stage development to advanced clinical trials, for a range of medical needs. Its clinical therapeutic candidates under development consist of BL-1020 that is in Phase II/III clinical trials to improve cognitive function in schizophrenia patients; BL-1040, which is under pivotal CE-Mark registration trial for the prevention of cardiac remodeling following an acute myocardial infarction; BL-5010, which has completed Phase I/II clinical trials for non-surgical removal of skin lesions; BL-1021 that has completed Phase Ia clinical trial for the treatment of neuropathic pain or pain that results from damage to nerve fibers, and BL-7040, a synthetic oligonucleotide, which is in Phase II clinical trial for the treatment of inflammatory bowel disease. The Company also has 11 pre-clinical stage development products for various indications.

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