Critical Comparison: Ascend Wellness (OTCMKTS:AAWH) & Ocular Therapeutix (NASDAQ:OCUL)

Ocular Therapeutix (NASDAQ:OCUL) and Ascend Wellness (OTCMKTS:AAWH) are both small-cap healthcare companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ocular Therapeutix	$50.38 million	28.88	-$265.94 million	($1.46)	-4.54
Ascend Wellness	$500.58 million	0.15	-$118.19 million	($0.57)	-0.64

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

Profitability

This table compares Ocular Therapeutix and Ascend Wellness’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ocular Therapeutix	-648.64%	-56.26%	-44.66%
Ascend Wellness	-23.31%	N/A	-10.85%

Analyst Ratings

This is a breakdown of recent recommendations for Ocular Therapeutix and Ascend Wellness, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ocular Therapeutix	1	1	8	1	2.82
Ascend Wellness	0	1	0	0	2.00

Ocular Therapeutix presently has a consensus target price of $23.83, suggesting a potential upside of 259.75%. Given Ocular Therapeutix’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Ocular Therapeutix is more favorable than Ascend Wellness.

Institutional and Insider Ownership

59.2% of Ocular Therapeutix shares are owned by institutional investors. Comparatively, 17.3% of Ascend Wellness shares are owned by institutional investors. 3.1% of Ocular Therapeutix shares are owned by insiders. Comparatively, 21.9% of Ascend Wellness shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Ocular Therapeutix has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500. Comparatively, Ascend Wellness has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500.

Summary

Ascend Wellness beats Ocular Therapeutix on 8 of the 14 factors compared between the two stocks.

About Ocular Therapeutix

Ocular Therapeutix, Inc. is a biopharmaceutical company focused on developing and commercializing treatments for eye diseases and conditions. Based in Bedford, Massachusetts, the company uses its proprietary hydrogel-based technology to deliver medicines to the eye over time. Its marketed product, DEXTENZA, is a corticosteroid insert placed in the tear duct by an eye-care professional to treat inflammation and pain following ophthalmic surgery. Ocular Therapeutix also develops investigational therapies for retinal diseases and other eye conditions, including treatments designed for sustained drug delivery.

About Ascend Wellness

Ascend Wellness Holdings, Inc. is a vertically integrated cannabis company that cultivates, manufactures, and sells cannabis products in the United States. The company serves both medical and adult-use markets, subject to applicable state regulations. Ascend’s product portfolio includes flower, pre-rolls, vapes, concentrates, edibles, and other cannabis products sold under brands such as Ozone, Simply Herb, Common Goods, and &Shine. The company distributes products through its own retail dispensaries and through wholesale channels serving third-party cannabis retailers.