Coherus Biosciences (NASDAQ: CHRS) and Ra Pharmaceuticals (NASDAQ:RARX) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, valuation, earnings and dividends.

Earnings & Valuation

This table compares Coherus Biosciences and Ra Pharmaceuticals’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Coherus Biosciences $190.11 million 2.68 -$127.33 million ($5.42) -1.62
Ra Pharmaceuticals $4.93 million 65.32 -$28.86 million ($2.47) -5.76

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

Insider & Institutional Ownership

81.1% of Coherus Biosciences shares are held by institutional investors. Comparatively, 69.6% of Ra Pharmaceuticals shares are held by institutional investors. 26.3% of Coherus Biosciences shares are held by insiders. Comparatively, 14.5% of Ra Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Coherus Biosciences and Ra Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Coherus Biosciences -73.89% -582.31% -138.04%
Ra Pharmaceuticals N/A -49.83% -45.57%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Coherus Biosciences and Ra Pharmaceuticals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Coherus Biosciences 0 0 8 0 3.00
Ra Pharmaceuticals 0 0 4 0 3.00

Coherus Biosciences presently has a consensus target price of $32.00, indicating a potential upside of 263.64%. Ra Pharmaceuticals has a consensus target price of $25.00, indicating a potential upside of 75.69%. Given Coherus Biosciences’ higher possible upside, research analysts clearly believe Coherus Biosciences is more favorable than Ra Pharmaceuticals.

Summary

Ra Pharmaceuticals beats Coherus Biosciences on 6 of the 11 factors compared between the two stocks.

About Coherus Biosciences

Coherus BioSciences, Inc. is a late-stage clinical biologics platform company. The Company is engaged in the business of developing and commercializing biosimilar products. The Company’s business is organized around therapeutic franchises, including Oncology biosimilar candidates pegfilgrastim (Neulasta) and bevacizumab (Avastin); Immunology (Anti-TNF) biosimilar candidates etanercept (Enbrel) and adalimumab (Humira); Ophthalmology biosimilar candidate ranibizumab (Lucentis), and Multiple sclerosis small molecule therapeutic candidate, CHS-131. The Company’s product candidate pipeline includes CHS-1701, CHS-5217, CHS-0214, CHS-1420 and CHS-3351. Its CHS-1701 is a Granulocyte colony-stimulating factor (G-CSF) product candidate. Its Bevacizumab is a recombinant humanized monoclonal antibody that blocks angiogenesis by inhibiting vascular endothelial growth factor A (VEGF-A). Its Etanercept (Enbrel) is the reference product for CHS-0214.

About Ra Pharmaceuticals

Ra Pharmaceuticals, Inc. is a United States-based clinical-stage biopharmaceutical company. The Company focuses on the development of therapeutics for diseases of complement dysregulation and a range of orphan indications. It utilizes small molecules and peptide approaches to address pathological targets in the complement cascade. It has leveraged the Extreme Diversity peptide chemistry platform to develop a portfolio of products that selectively inhibit the complement system and other immune targets. Its main program, RA101495, is a macrocyclic peptide inhibitor of complement component 5 (C5), which is in Phase I stage of development for the treatment of paroxysmal nocturnal hemoglobinuria (PNH). RA101495 binds a site on the C5 protein to inhibit cleavage into C5a and C5b, thereby preventing red blood cell lysis by inhibiting the production and assembly of the membrane attack complex (MAC). RA101495 is being developed as an alternative to eculizumab therapy for patients with PNH.

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