Ocular Therapeutix (NASDAQ:OCUL – Get Free Report) and Ascend Wellness (OTCMKTS:AAWH – Get Free Report) are both small-cap healthcare companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, earnings and analyst recommendations.
Profitability
This table compares Ocular Therapeutix and Ascend Wellness’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ocular Therapeutix | -579.10% | -59.89% | -45.99% |
| Ascend Wellness | -23.31% | N/A | -10.85% |
Earnings and Valuation
This table compares Ocular Therapeutix and Ascend Wellness”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ocular Therapeutix | $51.95 million | 28.83 | -$265.94 million | ($1.42) | -4.80 |
| Ascend Wellness | $500.58 million | 0.16 | -$118.19 million | ($0.57) | -0.71 |
Ascend Wellness has higher revenue and earnings than Ocular Therapeutix. Ocular Therapeutix is trading at a lower price-to-earnings ratio than Ascend Wellness, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
59.2% of Ocular Therapeutix shares are held by institutional investors. Comparatively, 17.3% of Ascend Wellness shares are held by institutional investors. 3.1% of Ocular Therapeutix shares are held by insiders. Comparatively, 21.9% of Ascend Wellness 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.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Ocular Therapeutix and Ascend Wellness, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ocular Therapeutix | 1 | 1 | 8 | 1 | 2.82 |
| Ascend Wellness | 0 | 1 | 0 | 0 | 2.00 |
Ocular Therapeutix presently has a consensus price target of $23.33, indicating a potential upside of 242.13%. Given Ocular Therapeutix’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Ocular Therapeutix is more favorable than Ascend Wellness.
Risk & Volatility
Ocular Therapeutix has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500. Comparatively, Ascend Wellness has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500.
Summary
Ascend Wellness beats Ocular Therapeutix on 8 of the 14 factors compared between the two stocks.
About Ocular Therapeutix
Ocular Therapeutix, Inc., a biopharmaceutical company, focuses on the formulation, development, and commercialization of therapies for diseases and conditions of the eye using its bioresorbable hydrogel-based formulation technology in the United States. The company markets DEXTENZA, a dexamethasone ophthalmic insert to treat post-surgical ocular inflammation and pain following ophthalmic surgery, as well as allergic conjunctivitis. It is developing AXPAXLI, an axitinib intravitreal implant that is in phase 3 trials for the treatment of wet age-related macular degeneration and other retinal diseases; PAXTRAVA, a travoprost intracameral implant, which is in phase 2 clinical trials for the treatment of open-angle glaucoma or ocular hypertension; OTX-CSI, a cyclosporine intracanalicular insert that has completed phase 2 clinical trials for the treatment of dry eye disease; and OTX-DED, a dexamethasone intracanalicular insert, which is in phase 2 clinical trials for the short-term treatment of the signs and symptoms of dry eye disease. In addition, the company offers modulator for intermediate and late dry age-related macular degeneration; and gene delivery for inherited retinal degenerations and protein biofactory indications. The company has a strategic collaboration with Regeneron Pharmaceuticals, Inc. (Regeneron) for the development and commercialization of products using the company’s sustained-release hydrogel in combination with Regeneron’s large molecule VEGF-targeting compounds for the treatment of retinal diseases; and AffaMed Therapeutics Limited for the development and commercialization of DEXTENZA and OTX-TIC. Ocular Therapeutix, Inc. was incorporated in 2006 and is headquartered in Bedford, Massachusetts.
About Ascend Wellness
Ascend Wellness Holdings, Inc. engages in the cultivation, manufacture, and distribution of cannabis consumer packaged goods in the United States. The company offers flower, pre-rolls, concentrates, vapes, edibles, tinctures, and other cannabis-related products under the Common Goods, SimplyHerb, Ozone, Ozone Reserve, Royale, Tunnel Vision, Miss Grass, Lowell Smokes, Edie Parker, 1906, and AiroPro brands. It also owns, operates, and manages cannabis cultivation facilities and dispensaries. The company sells its products through company-owned retail stores and third-party licensed retail cannabis stores. Ascend Wellness Holdings, Inc. was incorporated in 2018 and is headquartered in New York, New York.
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