Financial Analysis: DURECT (NASDAQ:DRRX) and Biora Therapeutics (NASDAQ:BIOR)

DURECT (NASDAQ:DRRXGet Free Report) and Biora Therapeutics (NASDAQ:BIORGet Free Report) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.

Institutional and Insider Ownership

28.0% of DURECT shares are held by institutional investors. Comparatively, 43.7% of Biora Therapeutics shares are held by institutional investors. 4.3% of DURECT shares are held by insiders. Comparatively, 23.2% of Biora Therapeutics shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares DURECT and Biora Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DURECT -398.65% -289.99% -78.74%
Biora Therapeutics -55,269.39% N/A -125.67%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for DURECT and Biora Therapeutics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DURECT 0 2 2 0 2.50
Biora Therapeutics 0 0 1 0 3.00

DURECT presently has a consensus target price of $35.00, suggesting a potential upside of 2,511.94%. Given DURECT’s higher probable upside, research analysts clearly believe DURECT is more favorable than Biora Therapeutics.

Risk & Volatility

DURECT has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500. Comparatively, Biora Therapeutics has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500.

Valuation & Earnings

This table compares DURECT and Biora Therapeutics’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
DURECT $19.28 million 2.07 -$35.33 million ($1.58) -0.85
Biora Therapeutics $310,000.00 102.70 -$38.16 million ($9.59) -0.12

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

About DURECT

(Get Free Report)

DURECT Corporation, a biopharmaceutical company, researches and develops medicines based on its epigenetic regulator and pharmaceutical programs. The company offers ALZET product line that consists of osmotic pumps and accessories used for research in mice, rats, and other laboratory animals. It also develops larsucosterol (DUR-928), an endogenous, orally bioavailable small molecule that is in Phase IIb clinical trial to play a regulatory role in lipid metabolism, stress and inflammatory responses, and cell death and survival to treat alcohol-associated hepatitis, as well as completed Phase Ib clinical trial to treat patients with nonalcoholic steatohepatitis. In addition, the company offers POSIMIR, a post-surgical pain product to deliver bupivacaine over three days in adults; and Methydur to treat attention deficit hyperactivity disorder. It markets and sells its ALZET lines through direct sales force in the United States, as well as through a network of distributors in Japan, Europe, and internationally. The company has strategic collaboration and other agreements with Virginia Commonwealth University Intellectual Property Foundation; Indivior UK Ltd.; and Innocoll Pharmaceuticals Limited. DURECT Corporation was incorporated in 1998 and is headquartered in Cupertino, California.

About Biora Therapeutics

(Get Free Report)

Biora Therapeutics, Inc., a biotechnology company, engages in developing oral biotherapeutics. The company's targeted therapeutics program uses an ingestible smart capsule for targeted delivery of therapeutics in the gastrointestinal (GI) tract to enhance the treatment of inflammatory bowel diseases; and Systemic oral delivery platform for oral delivery of large molecules for management of chronic diseases. The company was formerly known as Progenity, Inc. and changed its name to Biora Therapeutics, Inc. in April 2022 to reflect its focus on its therapeutics pipeline. Biora Therapeutics, Inc. was founded in 2010 and is headquartered in San Diego, California.

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