Financial Analysis: Chiasma (CHMA) & Strongbridge Biopharma PLC (SBBP)
Chiasma (NASDAQ: CHMA) and Strongbridge Biopharma PLC (NASDAQ:SBBP) are both small-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, risk, valuation, institutional ownership, earnings, analyst recommendations and profitability.
Institutional and Insider Ownership
50.4% of Chiasma shares are owned by institutional investors. Comparatively, 56.5% of Strongbridge Biopharma PLC shares are owned by institutional investors. 3.8% of Chiasma shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This is a breakdown of current ratings and recommmendations for Chiasma and Strongbridge Biopharma PLC, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Strongbridge Biopharma PLC||0||0||3||0||3.00|
Strongbridge Biopharma PLC has a consensus target price of $13.33, indicating a potential upside of 115.05%. Given Strongbridge Biopharma PLC’s stronger consensus rating and higher probable upside, analysts clearly believe Strongbridge Biopharma PLC is more favorable than Chiasma.
Valuation and Earnings
This table compares Chiasma and Strongbridge Biopharma PLC’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Strongbridge Biopharma PLC||$1.53 million||143.19||-$39.43 million||($2.78)||-2.23|
Chiasma has higher revenue, but lower earnings than Strongbridge Biopharma PLC. Strongbridge Biopharma PLC is trading at a lower price-to-earnings ratio than Chiasma, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Chiasma has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500. Comparatively, Strongbridge Biopharma PLC has a beta of 2.71, meaning that its share price is 171% more volatile than the S&P 500.
This table compares Chiasma and Strongbridge Biopharma PLC’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Strongbridge Biopharma PLC||N/A||-83.83%||-34.77%|
Strongbridge Biopharma PLC beats Chiasma on 6 of the 11 factors compared between the two stocks.
Chiasma Company Profile
Chiasma, Inc. is a biopharmaceutical company. The Company is engaged in developing and commercializing oral forms of therapies that are available only by injection. Using its Transient Permeability Enhancer (TPE) technology platform, the Company is developing oral therapies. The Company has completed a Phase III clinical trial of its TPE platform-based product candidate, oral octreotide capsules (trade named as MYCAPSSA) for the treatment of acromegaly, a condition that results in the body’s production of excess growth hormone. Octreotide is an analog of somatostatin, a natural inhibitor of growth hormone secretion. The Company is developing octreotide capsules as a liquid-filled solid gelatin capsule formulation, which is intended to be taken over twice a day. The Company’s TPE technology enhances the absorption through the intestinal wall of drugs. The Company also focuses on developing CH2 for Orphan indication.
Strongbridge Biopharma PLC Company Profile
Strongbridge Biopharma plc is a global commercial-stage biopharmaceutical company. The Company is focused on the development and commercialization of therapies for a range of diseases. The Company’s commercial product, KEVEYIS (dichlorphenamide), is indicated for the treatment of hyperkalemic, hypokalemic and related variants of primary periodic paralysis. The United States Food and Drug Administration (FDA) has granted orphan drug designation for KEVEYIS. The Company has a clinical-stage pipeline of therapies for endocrine diseases. The Company’s lead compounds include COR-003 (levoketoconazole), a cortisol synthesis inhibitor, and COR-005 (veldoreotide), a somatostatin analog (SSA). The Company is studying COR-003 for the treatment of endogenous Cushing’s syndrome. It is investigating COR-005 for the treatment of acromegaly. Both COR-003 and COR-005 have received orphan designation from the FDA and the European Medicines Agency (EMA).
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