Head to Head Survey: Collegium Pharmaceutical (NASDAQ:COLL) versus Journey Medical (NASDAQ:DERM)

Collegium Pharmaceutical (NASDAQ:COLL) and Journey Medical (NASDAQ:DERM) are both small-cap healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, analyst recommendations, risk, dividends and valuation.

Valuation and Earnings

This table compares Collegium Pharmaceutical and Journey Medical”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Collegium Pharmaceutical	$808.21 million	0.92	$62.87 million	$1.24	18.48
Journey Medical	$68.18 million	1.99	-$11.43 million	($0.22)	-21.82

Collegium Pharmaceutical has higher revenue and earnings than Journey Medical. Journey Medical is trading at a lower price-to-earnings ratio than Collegium Pharmaceutical, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

7.2% of Journey Medical shares are owned by institutional investors. 1.8% of Collegium Pharmaceutical shares are owned by company insiders. Comparatively, 14.5% of Journey Medical shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Collegium Pharmaceutical has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500. Comparatively, Journey Medical has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500.

Profitability

This table compares Collegium Pharmaceutical and Journey Medical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Collegium Pharmaceutical	5.93%	91.43%	15.57%
Journey Medical	-8.95%	-20.23%	-6.60%

Analyst Ratings

This is a summary of current ratings and target prices for Collegium Pharmaceutical and Journey Medical, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Collegium Pharmaceutical	1	1	6	1	2.78
Journey Medical	1	0	2	0	2.33

Collegium Pharmaceutical presently has a consensus target price of $48.71, suggesting a potential upside of 112.54%. Journey Medical has a consensus target price of $14.00, suggesting a potential upside of 191.67%. Given Journey Medical’s higher possible upside, analysts plainly believe Journey Medical is more favorable than Collegium Pharmaceutical.

Summary

Collegium Pharmaceutical beats Journey Medical on 10 of the 15 factors compared between the two stocks.

About Collegium Pharmaceutical

Collegium Pharmaceutical, Inc., a specialty pharmaceutical company, engages in the development and commercialization of medicines for pain management. Its portfolio includes Xtampza ER, an abuse-deterrent, extended-release, and oral formulation of oxycodone for the management of pain severe enough to require daily, around-the-clock, long-term opioid treatment; Nucynta ER and Nucynta IR, which are extended-release and immediate-release formulations of tapentadol, indicated for the management of acute, severe, and persistent pain; Belbuca, a buccal film that contains buprenorphine; and Symproic, an oral formulation of naldemedine for the treatment of opioid-induced constipation in adult patients with chronic non-cancer pain. The company was formerly known as Collegium Pharmaceuticals, Inc. and changed its name to Collegium Pharmaceutical, Inc. in October 2003. Collegium Pharmaceutical, Inc. was incorporated in 2002 and is headquartered in Stoughton, Massachusetts.

About Journey Medical

Journey Medical Corporation focuses on the development and commercialization of pharmaceutical products for the treatment of dermatological conditions in the United States. The company's marketed products include Qbrexza, a medicated cloth towelette for the treatment of primary axillary hyperhidrosis; Accutane, an oral isotretinoin drug to treat severe recalcitrant nodular acne; and Amzeeq, a topical formulation of minocycline for the treatment of inflammatory lesions of non-nodular moderate to severe acne vulgaris. It also offers Zilxi, a topical minocycline treatment for inflammatory lesions of rosacea; Exelderm cream and solution an antifungal intended for topical use; Targadox, an oral doxycycline drug for adjunctive therapy for severe acne; and Luxamend, a water-based emulsion formulated to provide a moist healing environment for superficial wounds; minor cuts or scrapes; dermal ulcers; donor sites; first- and second-degree burns, including sunburns; and radiation dermatitis. In addition, the company sells sulconazole nitrate cream and solution indicated for the treatment of tinea cruris, tinea corporis, and tinea versicolor; and doxycycline hyclate tablets, as an adjunctive therapy for severe acne. The company was formerly known as Coronado Dermatology, Inc. and changed its name to Journey Medical Corporation. Journey Medical Corporation was incorporated in 2014 and is headquartered in Scottsdale, Arizona. Journey Medical Corporation is a subsidiary of Fortress Biotech, Inc.