Critical Comparison: Collegium Pharmaceutical (NASDAQ:COLL) vs. ObsEva (NASDAQ:OBSV)

ObsEva (NASDAQ:OBSVGet Rating) and Collegium Pharmaceutical (NASDAQ:COLLGet Rating) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Volatility and Risk

ObsEva has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500. Comparatively, Collegium Pharmaceutical has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500.

Earnings & Valuation

This table compares ObsEva and Collegium Pharmaceutical’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ObsEva $20.11 million 0.19 -$58.38 million ($0.92) -0.05
Collegium Pharmaceutical $463.93 million 1.69 -$25.00 million ($0.86) -26.37

Collegium Pharmaceutical has higher revenue and earnings than ObsEva. Collegium Pharmaceutical is trading at a lower price-to-earnings ratio than ObsEva, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares ObsEva and Collegium Pharmaceutical’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ObsEva N/A -416.36% -92.01%
Collegium Pharmaceutical -5.59% 62.88% 10.01%

Analyst Recommendations

This is a summary of recent ratings and price targets for ObsEva and Collegium Pharmaceutical, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ObsEva 0 3 0 0 2.00
Collegium Pharmaceutical 0 1 1 0 2.50

ObsEva presently has a consensus price target of $6.00, suggesting a potential upside of 11,900.00%. Collegium Pharmaceutical has a consensus price target of $35.00, suggesting a potential upside of 54.32%. Given ObsEva’s higher probable upside, equities analysts plainly believe ObsEva is more favorable than Collegium Pharmaceutical.

Insider & Institutional Ownership

17.5% of ObsEva shares are owned by institutional investors. 14.4% of ObsEva shares are owned by company insiders. Comparatively, 3.7% of Collegium Pharmaceutical shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Collegium Pharmaceutical beats ObsEva on 9 of the 14 factors compared between the two stocks.

About ObsEva

(Get Rating)

ObsEva SA is a clinical-stage biopharmaceutical company, which engages in the research and development of therapeutic treatments for women’s reproductive health and pregnancy. It offers biopharmaceutical drugs addressing conditions compromising pregnancy from conception to birth. The company was founded by Ernest Loumaye and AndrĂ© Chollet on November 14, 2012 and is headquartered in Geneva, Switzerland.

About Collegium Pharmaceutical

(Get Rating)

Collegium Pharmaceutical, Inc. is a pharmaceutical company, which engages in development and planning to commercialize next generation, abuse-deterrent products for the treatment of patients suffering from chronic pain and other diseases. Its products include Xtampza ER, Nucynta ER and Nucynta IR, Belbuca, and Symproic. The company was founded by Michael Thomas Heffernan in April 2002 and is headquartered in Stoughton, MA.

Receive News & Ratings for ObsEva Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for ObsEva and related companies with MarketBeat.com's FREE daily email newsletter.