Otonomy (NASDAQ: OTIC) and Gemphire Therapeutics (NASDAQ:GEMP) are both small-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, profitability, risk and dividends.
This is a breakdown of current ratings for Otonomy and Gemphire Therapeutics, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Otonomy currently has a consensus target price of $10.00, indicating a potential upside of 127.27%. Gemphire Therapeutics has a consensus target price of $25.80, indicating a potential upside of 260.34%. Given Gemphire Therapeutics’ stronger consensus rating and higher possible upside, analysts plainly believe Gemphire Therapeutics is more favorable than Otonomy.
Risk and Volatility
Otonomy has a beta of 2.94, meaning that its share price is 194% more volatile than the S&P 500. Comparatively, Gemphire Therapeutics has a beta of 4.66, meaning that its share price is 366% more volatile than the S&P 500.
Insider & Institutional Ownership
71.6% of Otonomy shares are owned by institutional investors. Comparatively, 20.4% of Gemphire Therapeutics shares are owned by institutional investors. 12.7% of Otonomy shares are owned by insiders. Comparatively, 34.0% of Gemphire Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This table compares Otonomy and Gemphire Therapeutics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Otonomy and Gemphire Therapeutics’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Otonomy||$1.24 million||108.51||-$90.13 million||($2.97)||-1.48|
|Gemphire Therapeutics||N/A||N/A||-$33.42 million||($3.23)||-2.22|
Gemphire Therapeutics has lower revenue, but higher earnings than Otonomy. Gemphire Therapeutics is trading at a lower price-to-earnings ratio than Otonomy, indicating that it is currently the more affordable of the two stocks.
Gemphire Therapeutics beats Otonomy on 7 of the 12 factors compared between the two stocks.
Otonomy, Inc. is a biopharmaceutical company. The Company focuses on the development and commercialization of therapeutics for diseases and disorders of the ear. The Company’s product candidates include OTIPRIO, OTO-104 and OTO-311. OTIPRIO is a single-dose, physician-administered antibacterial, which is used for the treatment of pediatric patients with bilateral otitis media with effusion undergoing tympanostomy tube placement (TTP) surgery and is available for commercial purchase. OTO-104 is a sustained-exposure formulation of the steroid dexamethasone in development for the treatment of Meniere’s disease and other inner ear conditions. OTO-311 is a sustained-exposure formulation of the N-Methyl-D-Aspartate (NMDA) receptor antagonist gacyclidine in development for the treatment of tinnitus. It also has various other product candidates, which target sensorinerual hearing loss, including age-related hearing loss, also known as presbycusis.
About Gemphire Therapeutics
Gemphire Therapeutics Inc. is a clinical-stage biopharmaceutical company. The Company is engaged in the development and commercialization of therapeutics to treat cardiovascular and metabolic diseases. It is developing its product candidate, gemcabene (CI-1027), which is a once-daily, oral therapy for patients who are unable to achieve normal levels of low-density lipoprotein cholesterol (LDL-C) or triglycerides with approved therapies, primarily statin therapy. Gemcabene is liver-directed and inhibits apolipoprotein C-III (apoC-III) protein in the liver and may inhibit acetyl-CoA carboxylase (ACC) in the liver. Gemcabene blocks the overall production of hepatic triglycerides and cholesterol. Gemcabene has been tested as monotherapy and in combination with statins and other drugs in over 895 subjects, across approximately 18 Phase I and Phase II clinical trials. Gemcabene is used as an adjunctive therapy to reduce LDL-C, high-sensitivity C-reactive protein (hsCRP) and triglycerides.
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