Analyzing Ocular Therapeutix (NASDAQ:OCUL) and Lotus Pharmaceuticals (OTCMKTS:LTUS)

Ocular Therapeutix (NASDAQ:OCUL) and Lotus Pharmaceuticals (OTCMKTS:LTUS) are both small-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, profitability, earnings, valuation, analyst recommendations, risk and institutional ownership.

Volatility & Risk

Ocular Therapeutix has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500. Comparatively, Lotus Pharmaceuticals has a beta of -1.69, indicating that its share price is 269% less volatile than the S&P 500.

Profitability

This table compares Ocular Therapeutix and Lotus Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ocular Therapeutix	-511.90%	-70.68%	-50.53%
Lotus Pharmaceuticals	N/A	N/A	N/A

Institutional and Insider Ownership

59.2% of Ocular Therapeutix shares are held by institutional investors. 2.3% of Ocular Therapeutix shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Ocular Therapeutix and Lotus Pharmaceuticals”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ocular Therapeutix	$51.95 million	32.60	-$265.94 million	($1.44)	-5.40
Lotus Pharmaceuticals	N/A	N/A	$110,000.00	N/A	N/A

Lotus Pharmaceuticals has lower revenue, but higher earnings than Ocular Therapeutix.

Analyst Ratings

This is a summary of current recommendations and price targets for Ocular Therapeutix and Lotus Pharmaceuticals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ocular Therapeutix	1	1	12	0	2.79
Lotus Pharmaceuticals	0	0	0	0	0.00

Ocular Therapeutix currently has a consensus target price of $23.78, suggesting a potential upside of 205.63%. Given Ocular Therapeutix’s stronger consensus rating and higher probable upside, research analysts clearly believe Ocular Therapeutix is more favorable than Lotus Pharmaceuticals.

Summary

Ocular Therapeutix beats Lotus Pharmaceuticals on 7 of the 11 factors compared between the two stocks.

About Ocular Therapeutix

Ocular Therapeutix, Inc., a biopharmaceutical company, focuses on the formulation, development, and commercialization of therapies for diseases and conditions of the eye using its bioresorbable hydrogel-based formulation technology in the United States. The company markets DEXTENZA, a dexamethasone ophthalmic insert to treat post-surgical ocular inflammation and pain following ophthalmic surgery, as well as allergic conjunctivitis. It is developing AXPAXLI, an axitinib intravitreal implant that is in phase 3 trials for the treatment of wet age-related macular degeneration and other retinal diseases; PAXTRAVA, a travoprost intracameral implant, which is in phase 2 clinical trials for the treatment of open-angle glaucoma or ocular hypertension; OTX-CSI, a cyclosporine intracanalicular insert that has completed phase 2 clinical trials for the treatment of dry eye disease; and OTX-DED, a dexamethasone intracanalicular insert, which is in phase 2 clinical trials for the short-term treatment of the signs and symptoms of dry eye disease. In addition, the company offers modulator for intermediate and late dry age-related macular degeneration; and gene delivery for inherited retinal degenerations and protein biofactory indications. The company has a strategic collaboration with Regeneron Pharmaceuticals, Inc. (Regeneron) for the development and commercialization of products using the company’s sustained-release hydrogel in combination with Regeneron’s large molecule VEGF-targeting compounds for the treatment of retinal diseases; and AffaMed Therapeutics Limited for the development and commercialization of DEXTENZA and OTX-TIC. Ocular Therapeutix, Inc. was incorporated in 2006 and is headquartered in Bedford, Massachusetts.

About Lotus Pharmaceuticals

Lotus Pharmaceuticals, Inc. does not have significant operations. Previously, it was engaged in the development, manufacture, and sale of pharmaceuticals in the People's Republic of China. The company is based in Nashville, Tennessee.