Contrasting Ocular Therapeutix (NASDAQ:OCUL) and Bausch Health Cos (NYSE:BHC)

Bausch Health Cos (NYSE:BHC – Get Free Report) and Ocular Therapeutix (NASDAQ:OCUL – Get Free Report) are both healthcare companies, but which is the better business? We will compare the two companies based on the strength of their profitability, risk, institutional ownership, earnings, valuation, dividends and analyst recommendations.

Institutional and Insider Ownership

78.7% of Bausch Health Cos shares are owned by institutional investors. Comparatively, 59.2% of Ocular Therapeutix shares are owned by institutional investors. 20.7% of Bausch Health Cos shares are owned by company insiders. Comparatively, 3.1% of Ocular Therapeutix shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Bausch Health Cos and Ocular Therapeutix, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bausch Health Cos 1 5 0 1 2.14
Ocular Therapeutix 1 1 10 0 2.75

Bausch Health Cos currently has a consensus price target of $8.00, indicating a potential upside of 35.02%. Ocular Therapeutix has a consensus price target of $22.86, indicating a potential upside of 202.34%. Given Ocular Therapeutix’s stronger consensus rating and higher probable upside, analysts plainly believe Ocular Therapeutix is more favorable than Bausch Health Cos.

Earnings & Valuation

This table compares Bausch Health Cos and Ocular Therapeutix”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bausch Health Cos $10.27 billion 0.22 $157.00 million ($2.96) -2.00
Ocular Therapeutix $51.95 million 31.96 -$265.94 million ($1.42) -5.32

Bausch Health Cos has higher revenue and earnings than Ocular Therapeutix. Ocular Therapeutix is trading at a lower price-to-earnings ratio than Bausch Health Cos, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Bausch Health Cos and Ocular Therapeutix’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bausch Health Cos -10.12% -561.95% 6.31%
Ocular Therapeutix -579.10% -59.89% -45.99%

Volatility and Risk

Bausch Health Cos has a beta of 0.37, suggesting that its stock price is 63% less volatile than the S&P 500. Comparatively, Ocular Therapeutix has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.

Summary

Bausch Health Cos beats Ocular Therapeutix on 8 of the 15 factors compared between the two stocks.

About Bausch Health Cos

(Get Free Report)

Bausch Health Companies Inc. operates as a diversified specialty pharmaceutical and medical device company in the United States and internationally. It develops, manufactures, and markets a range of products primarily in gastroenterology, hepatology, neurology, dermatology, international pharmaceuticals, over-the-counter (OTC) products, aesthetic medical devices, and eye health. The company operates through five segments: Salix, International, Solta Medical, Diversified, and Bausch + Lomb. The Salix segment provides gastroenterology products in the United States. The International segment sells aesthetic medical devices, branded pharmaceuticals, generic pharmaceuticals, and OTC products internationally. The Solta Medical segment engages in the sale of aesthetic medical devices. The Diversified segment offers pharmaceutical products in the areas of neurology and certain other therapeutic classes; generic products; ortho dermatologic; and dentistry products in the United States. The Bausch + Lomb segment offers products in the areas of vision care, surgical, and ophthalmic pharmaceuticals products. The company was formerly known as Valeant Pharmaceuticals International, Inc. and changed its name to Bausch Health Companies Inc. in July 2018. Bausch Health Companies Inc. is headquartered in Laval, Canada.

About Ocular Therapeutix

(Get Free Report)

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.

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