Antares Pharma (NASDAQ: ATRS) and Surmodics (NASDAQ:SRDX) are both small-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, risk, profitability and valuation.

Risk and Volatility

Antares Pharma has a beta of 0.24, suggesting that its share price is 76% less volatile than the S&P 500. Comparatively, Surmodics has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500.

Institutional & Insider Ownership

36.8% of Antares Pharma shares are held by institutional investors. Comparatively, 84.8% of Surmodics shares are held by institutional investors. 11.6% of Antares Pharma shares are held by insiders. Comparatively, 6.4% of Surmodics shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Antares Pharma and Surmodics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Antares Pharma -32.06% -43.05% -24.14%
Surmodics 5.37% 6.18% 5.11%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Antares Pharma and Surmodics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Antares Pharma 0 0 3 1 3.25
Surmodics 0 1 2 0 2.67

Antares Pharma currently has a consensus price target of $3.95, suggesting a potential upside of 124.43%. Surmodics has a consensus price target of $40.00, suggesting a potential upside of 37.22%. Given Antares Pharma’s stronger consensus rating and higher possible upside, research analysts plainly believe Antares Pharma is more favorable than Surmodics.

Valuation & Earnings

This table compares Antares Pharma and Surmodics’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Antares Pharma $52.22 million 5.28 -$24.33 million ($0.11) -16.00
Surmodics $73.11 million 5.29 $3.92 million $0.29 100.52

Surmodics has higher revenue and earnings than Antares Pharma. Antares Pharma is trading at a lower price-to-earnings ratio than Surmodics, indicating that it is currently the more affordable of the two stocks.

Summary

Surmodics beats Antares Pharma on 9 of the 14 factors compared between the two stocks.

Antares Pharma Company Profile

Antares Pharma, Inc. (Antares) is a specialty pharmaceutical company that focuses on developing and commercializing self-administered parenteral pharmaceutical products and technologies. The Company develops and manufactures pressure-assisted injector devices, with and without needles, which allow patients to self-inject drugs. The Company’s subcutaneous injection technology platforms include VIBEX disposable pressure-assisted auto injectors, Vision reusable needle-free injectors and disposable multi-use pen injectors. The Company operates through drug delivery segment, which includes self-administered parenteral pharmaceutical products and technologies. The Company has developed OTREXUP (methotrexate) injection, which is a single dose, disposable auto injector.

Surmodics Company Profile

Surmodics, Inc. is a provider of medical device and in vitro diagnostic technologies to the healthcare industry. The Company operates through two segments: Medical Device and In Vitro Diagnostics. The Company’s Medical Device segment consists of surface modification coating technologies to improve access, deliverability and predictable deployment of medical devices; international cardiology and peripheral balloon design, development and manufacturing, as well as drug delivery coating technologies to provide site-specific drug delivery from the surface of a medical device. The Company’s In Vitro Diagnostics segment manufactures or sells components for in vitro diagnostic immunoassay and molecular tests. The In Vitro Diagnostics segment manufactures and sells surface coatings to the diagnostic, biomedical research and life science markets. In Vitro Diagnostics segment offers protein stabilization reagents, substrates, antigens and surface coatings.

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