BeyondSpring (NASDAQ:BYSI) and Heron Therapeutics (NASDAQ:HRTX) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, dividends, risk, profitability, analyst recommendations, earnings and institutional ownership.
Analyst Recommendations
This is a summary of recent recommendations for BeyondSpring and Heron Therapeutics, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
BeyondSpring | 0 | 1 | 2 | 0 | 2.67 |
Heron Therapeutics | 0 | 1 | 5 | 0 | 2.83 |
BeyondSpring presently has a consensus target price of $32.6667, suggesting a potential upside of 217.46%. Heron Therapeutics has a consensus target price of $29.60, suggesting a potential upside of 78.31%. Given BeyondSpring's higher probable upside, equities analysts clearly believe BeyondSpring is more favorable than Heron Therapeutics.
Profitability
This table compares BeyondSpring and Heron Therapeutics' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
BeyondSpring | N/A | -221.67% | -139.97% |
Heron Therapeutics | -216.18% | -65.06% | -49.14% |
Valuation & Earnings
This table compares BeyondSpring and Heron Therapeutics' gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
BeyondSpring | N/A | N/A | $-38,080,000.00 | ($1.55) | -6.64 |
Heron Therapeutics | $145.97 million | 10.39 | $-204,750,000.00 | ($2.50) | -6.64 |
BeyondSpring has higher earnings, but lower revenue than Heron Therapeutics. Heron Therapeutics is trading at a lower price-to-earnings ratio than BeyondSpring, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
7.1% of BeyondSpring shares are held by institutional investors. Comparatively, 99.0% of Heron Therapeutics shares are held by institutional investors. 12.9% of Heron Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Risk and Volatility
BeyondSpring has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500. Comparatively, Heron Therapeutics has a beta of 1.52, suggesting that its stock price is 52% more volatile than the S&P 500.
Summary
Heron Therapeutics beats BeyondSpring on 8 of the 13 factors compared between the two stocks.