Collegium Pharmaceutical (NASDAQ:COLL – Get Free Report) and Sol-Gel Technologies (NASDAQ:SLGL – Get Free Report) are both small-cap healthcare companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, earnings, risk and institutional ownership.
Profitability
This table compares Collegium Pharmaceutical and Sol-Gel Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Collegium Pharmaceutical | 4.68% | 85.14% | 13.80% |
| Sol-Gel Technologies | -910.14% | -44.05% | -36.96% |
Institutional and Insider Ownership
26.2% of Sol-Gel Technologies shares are owned by institutional investors. 1.9% of Collegium Pharmaceutical shares are owned by company insiders. Comparatively, 66.5% of Sol-Gel Technologies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current ratings for Collegium Pharmaceutical and Sol-Gel Technologies, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Collegium Pharmaceutical | 0 | 2 | 7 | 1 | 2.90 |
| Sol-Gel Technologies | 1 | 0 | 4 | 2 | 3.00 |
Collegium Pharmaceutical presently has a consensus price target of $44.88, indicating a potential upside of 80.51%. Sol-Gel Technologies has a consensus price target of $197.50, indicating a potential upside of 260.93%. Given Sol-Gel Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe Sol-Gel Technologies is more favorable than Collegium Pharmaceutical.
Risk & Volatility
Collegium Pharmaceutical has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500. Comparatively, Sol-Gel Technologies has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500.
Valuation & Earnings
This table compares Collegium Pharmaceutical and Sol-Gel Technologies”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Collegium Pharmaceutical | $780.57 million | 0.99 | $62.87 million | $1.00 | 24.86 |
| Sol-Gel Technologies | $19.39 million | 9.23 | -$6.13 million | ($5.64) | -9.70 |
Collegium Pharmaceutical has higher revenue and earnings than Sol-Gel Technologies. Sol-Gel Technologies is trading at a lower price-to-earnings ratio than Collegium Pharmaceutical, indicating that it is currently the more affordable of the two stocks.
Summary
Collegium Pharmaceutical beats Sol-Gel Technologies on 8 of the 15 factors compared between the two stocks.
About Collegium Pharmaceutical
Collegium Pharmaceutical is a U.S.-based specialty pharmaceutical company focused on developing and commercializing medicines for pain management. Its portfolio includes Xtampza ER, an extended-release oxycodone product; Belbuca, a buprenorphine buccal film for chronic pain; and Nucynta, tapentadol tablets available in immediate- and extended-release formulations. The company also markets Symproic, a treatment for opioid-induced constipation. Collegium’s products include extended-release and opioid medicines, and the company emphasizes responsible use and risk-mitigation measures in its commercial activities.
About Sol-Gel Technologies
Sol-Gel Technologies is an Israel-based dermatology company that develops topical treatments for skin conditions. Its proprietary technology uses silica-based microencapsulation to formulate active ingredients for topical use. The company’s products include Epsolay, a benzoyl peroxide cream approved in the United States for inflammatory lesions of rosacea, and Twyneo, a topical combination of tretinoin and benzoyl peroxide approved for acne vulgaris. Sol-Gel has pursued commercialization and licensing opportunities in the United States and other markets.
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