Critical Analysis: Collegium Pharmaceutical (NASDAQ:COLL) & Sanofi (NASDAQ:SNY)

Collegium Pharmaceutical (NASDAQ:COLL) and Sanofi (NASDAQ:SNY) are both healthcare companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, earnings, risk, institutional ownership and profitability.

Profitability

This table compares Collegium Pharmaceutical and Sanofi’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%
Sanofi	8.66%	14.19%	7.95%

Valuation and Earnings

This table compares Collegium Pharmaceutical and Sanofi”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Collegium Pharmaceutical	$808.21 million	0.89	$62.87 million	$1.24	17.83
Sanofi	$49.35 billion	1.98	$8.84 billion	$1.91	21.06

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

Risk and Volatility

Collegium Pharmaceutical has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500. Comparatively, Sanofi has a beta of 0.33, suggesting that its share price is 67% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Collegium Pharmaceutical and Sanofi, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Collegium Pharmaceutical	2	1	6	0	2.44
Sanofi	1	10	3	2	2.38

Collegium Pharmaceutical currently has a consensus target price of $48.71, indicating a potential upside of 120.33%. Sanofi has a consensus target price of $49.50, indicating a potential upside of 23.04%. Given Collegium Pharmaceutical’s stronger consensus rating and higher possible upside, analysts clearly believe Collegium Pharmaceutical is more favorable than Sanofi.

Insider and Institutional Ownership

14.0% of Sanofi shares are owned by institutional investors. 1.8% of Collegium Pharmaceutical shares are owned by company insiders. Comparatively, 1.0% of Sanofi shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Sanofi beats Collegium Pharmaceutical on 8 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 Sanofi

Sanofi, a healthcare company, engages in the research, development, manufacture, and marketing of therapeutic solutions in the United States, Europe, Canada, and internationally. It operates through Pharmaceuticals, Vaccines, and Consumer Healthcare segments. The company provides specialty care, such as DUPIXENT, neurology and immunology, rare diseases, oncology, and rare blood disorders; medicines for diabetes and cardiovascular diseases; and established prescription products. In addition, it offers poliomyelitis, pertussis, and hib pediatric vaccines; influenza, booster, meningitis, and travel and endemic vaccines, which includes hepatitis A, typhoid, cholera, yellow fever, and rabies vaccines. The company also provides cough, cold, and flu, allergy, and pain care products, as well as physical, mental, and digestive wellness products; and offers products for itching, hydration, aging, cracking, overnight, and specialty skincare needs like eczema. Further, it has a collaboration and license agreement with Exscientia to develop up to 15 novel small-molecule for oncology and immunology; ABL Bio, Inc. to develop ABL301, a treatment for alpha-synucleinopathies; Blackstone Life Sciences to develop pivotal studies and clinical development program; and Seagen Inc. to design, develop, and commercialize antibody-drug conjugates for cancer. Additionally, the company has a collaboration agreement with IGM Biosciences, Inc. to develop, manufacture, and commercialize IgM antibody; Skyhawk Therapeutics, Inc to discover and develop novel small molecules; and Adagene Inc., for the discovery and development of antibody-based therapies. It also has collaborations with Scribe Therapeutics Inc. to develop genome editing technologies; and co-promotion service agreement with Provention Bio, Inc. for the commercialization of teplizumab. The company was formerly known as Sanofi-Aventis and changed its name to Sanofi in May 2011. Sanofi was incorporated in 1994 and is headquartered in Paris, France.