Osmotica Pharmaceuticals (NASDAQ:OSMT) and Xenon Pharmaceuticals (NASDAQ:XENE) are both small-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, profitability, earnings, institutional ownership, analyst recommendations and risk.
Earnings and Valuation
This table compares Osmotica Pharmaceuticals and Xenon Pharmaceuticals' gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Osmotica Pharmaceuticals | $240.03 million | 0.80 | $-270,900,000.00 | $0.25 | 12.20 |
| Xenon Pharmaceuticals | $6.83 million | 99.72 | $-41,600,000.00 | ($1.54) | -12.35 |
Xenon Pharmaceuticals has lower revenue, but higher earnings than Osmotica Pharmaceuticals. Xenon Pharmaceuticals is trading at a lower price-to-earnings ratio than Osmotica Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Osmotica Pharmaceuticals and Xenon Pharmaceuticals, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Osmotica Pharmaceuticals | 0 | 1 | 3 | 0 | 2.75 |
| Xenon Pharmaceuticals | 0 | 0 | 5 | 0 | 3.00 |
Osmotica Pharmaceuticals currently has a consensus target price of $9.25, indicating a potential upside of 203.28%. Xenon Pharmaceuticals has a consensus target price of $25.25, indicating a potential upside of 32.27%. Given Osmotica Pharmaceuticals' higher possible upside, equities research analysts clearly believe Osmotica Pharmaceuticals is more favorable than Xenon Pharmaceuticals.
Profitability
This table compares Osmotica Pharmaceuticals and Xenon Pharmaceuticals' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Osmotica Pharmaceuticals | -25.26% | -13.23% | -3.91% |
| Xenon Pharmaceuticals | -102.25% | -21.76% | -16.08% |
Volatility & Risk
Osmotica Pharmaceuticals has a beta of 2.92, meaning that its share price is 192% more volatile than the S&P 500. Comparatively, Xenon Pharmaceuticals has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500.
Insider & Institutional Ownership
79.9% of Xenon Pharmaceuticals shares are owned by institutional investors. 5.3% of Osmotica Pharmaceuticals shares are owned by company insiders. Comparatively, 8.4% of Xenon Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary
Osmotica Pharmaceuticals beats Xenon Pharmaceuticals on 8 of the 14 factors compared between the two stocks.
