Ocular Therapeutix (NASDAQ:OCUL) and Tonix Pharmaceuticals (NASDAQ:TNXP) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, analyst recommendations, institutional ownership, valuation, earnings and profitability.
Profitability
This table compares Ocular Therapeutix and Tonix Pharmaceuticals' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Ocular Therapeutix | -780.19% | -14,065.71% | -81.81% |
| Tonix Pharmaceuticals | N/A | -107.52% | -96.64% |
Risk and Volatility
Ocular Therapeutix has a beta of 2.29, meaning that its share price is 129% more volatile than the S&P 500. Comparatively, Tonix Pharmaceuticals has a beta of 1.57, meaning that its share price is 57% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations for Ocular Therapeutix and Tonix Pharmaceuticals, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Ocular Therapeutix | 0 | 1 | 2 | 1 | 3.00 |
| Tonix Pharmaceuticals | 0 | 0 | 1 | 0 | 3.00 |
Ocular Therapeutix presently has a consensus price target of $24.80, indicating a potential upside of 56.07%. Tonix Pharmaceuticals has a consensus price target of $4.00, indicating a potential upside of 308.16%. Given Tonix Pharmaceuticals' higher possible upside, analysts clearly believe Tonix Pharmaceuticals is more favorable than Ocular Therapeutix.
Valuation and Earnings
This table compares Ocular Therapeutix and Tonix Pharmaceuticals' top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Ocular Therapeutix | $4.23 million | 285.76 | $-86,370,000.00 | ($2.01) | -7.91 |
| Tonix Pharmaceuticals | N/A | N/A | $-28,620,000.00 | ($19.33) | -0.05 |
Tonix Pharmaceuticals has lower revenue, but higher earnings than Ocular Therapeutix. Ocular Therapeutix is trading at a lower price-to-earnings ratio than Tonix Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
52.5% of Ocular Therapeutix shares are held by institutional investors. Comparatively, 2.2% of Tonix Pharmaceuticals shares are held by institutional investors. 7.7% of Ocular Therapeutix shares are held by insiders. Comparatively, 0.2% of Tonix Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
Ocular Therapeutix beats Tonix Pharmaceuticals on 8 of the 13 factors compared between the two stocks.
