Assembly Biosciences (NASDAQ:ASMB) versus Heron Therapeutics (NASDAQ:HRTX) Head-To-Head Contrast

Heron Therapeutics (NASDAQ:HRTX) and Assembly Biosciences (NASDAQ:ASMB) are both small-cap healthcare companies, but which is the better business? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, risk, valuation, institutional ownership and dividends.

Volatility & Risk

Heron Therapeutics has a beta of 1.65, indicating that its share price is 65% more volatile than the S&P 500. Comparatively, Assembly Biosciences has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500.

Profitability

This table compares Heron Therapeutics and Assembly Biosciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Heron Therapeutics	-22.52%	-293.02%	-10.00%
Assembly Biosciences	-0.06%	-0.02%	-0.02%

Analyst Recommendations

This is a summary of current recommendations and price targets for Heron Therapeutics and Assembly Biosciences, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Heron Therapeutics	1	3	0	0	1.75
Assembly Biosciences	1	0	4	1	2.83

Heron Therapeutics currently has a consensus price target of $2.00, indicating a potential upside of 469.80%. Assembly Biosciences has a consensus price target of $46.50, indicating a potential upside of 121.43%. Given Heron Therapeutics’ higher probable upside, research analysts clearly believe Heron Therapeutics is more favorable than Assembly Biosciences.

Institutional and Insider Ownership

80.0% of Heron Therapeutics shares are held by institutional investors. Comparatively, 19.9% of Assembly Biosciences shares are held by institutional investors. 6.1% of Heron Therapeutics shares are held by company insiders. Comparatively, 3.5% of Assembly Biosciences shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Heron Therapeutics and Assembly Biosciences”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Heron Therapeutics	$154.90 million	0.43	-$20.19 million	($0.19)	-1.85
Assembly Biosciences	$72.30 million	5.91	-$6.12 million	$1.02	20.59

Assembly Biosciences has lower revenue, but higher earnings than Heron Therapeutics. Heron Therapeutics is trading at a lower price-to-earnings ratio than Assembly Biosciences, indicating that it is currently the more affordable of the two stocks.

Summary

Assembly Biosciences beats Heron Therapeutics on 10 of the 15 factors compared between the two stocks.

About Heron Therapeutics

Heron Therapeutics, Inc., a commercial-stage biotechnology company, focuses on enhancing the lives of patients by developing and commercializing therapeutic that enhances medical care. The company's product candidates utilize its proprietary Biochronomer, a drug delivery technology, which delivers therapeutic levels of a range of short-acting pharmacological agents over a period from days to weeks with a single administration. It offers SUSTOL (granisetron), an extended-release injection for the prevention of acute and delayed nausea and vomiting associated with moderately emetogenic chemotherapy, or anthracycline and cyclophosphamide combination chemotherapy regimens; and CINVANTI, an intravenous formulation of aprepitant, a substance P/neurokinin-1 receptor antagonist for the prevention of acute and delayed nausea and vomiting associated with highly emetogenic cancer chemotherapy, as well as nausea and vomiting associated with moderately emetogenic cancer chemotherapy. The company is also developing ZYNRELEF, a dual-acting local anesthetic that delivers a fixed-dose combination of the local anesthetic bupivacaine and a low dose of the nonsteroidal anti-inflammatory drug meloxicam; and APONVIE, an intravenous formulation of a substance P/neurokinin-1 receptor antagonist indicated for the prevention of postoperative nausea and vomiting in adults. The company was formerly known as A.P. Pharma, Inc. and changed its name to Heron Therapeutics, Inc. in January 2014. Heron Therapeutics, Inc. was founded in 1983 and is headquartered in San Diego, California.

About Assembly Biosciences

Assembly Biosciences, Inc., a biotechnology company, develops therapeutic candidates for the treatment of viral diseases. It develops ABI-5366, a long-acting herpes simplex virus (HSV) helicase-primase inhibitor that is in Phase 1a/1b clinical trial to treat recurrent genital herpes; ABI-1179, which is in Phase 1a/1b clinical trial for the treatment of recurrent genital herpes; and ABI-6250, a small molecule orally bioavailable hepatitis delta virus entry inhibitor that is in Phase 1a clinical trial. The company also develops ABI-4334, a next-generation capsid assembly modulator, which is in Phase 1b clinical trial for the treatment of hepatitis B virus (HBV). In addition, it develops an oral non-nucleoside polymerase inhibitor targeting transplant-related herpesviruses; and a small molecule interferon-a receptor agonist targeting HBV and HDV. The company has collaboration agreements with Gilead Sciences, Inc. and BeiGene, Ltd. The company was formerly known as Ventrus Biosciences, Inc. and changed its name to Assembly Biosciences, Inc. in June 2014. Assembly Biosciences, Inc. was incorporated in 2005 and is headquartered in South San Francisco, California.