Strongbridge Biopharma (NASDAQ: SBBP) and Cardiome Pharma (NASDAQ:CRME) are both small-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, institutional ownership, risk and valuation.

Insider and Institutional Ownership

57.5% of Strongbridge Biopharma shares are held by institutional investors. Comparatively, 52.5% of Cardiome Pharma shares are held by institutional investors. 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.

Valuation & Earnings

This table compares Strongbridge Biopharma and Cardiome Pharma’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Strongbridge Biopharma N/A N/A -$48.59 million ($3.40) -1.88
Cardiome Pharma $25.26 million 1.95 -$19.61 million ($0.83) -1.71

Cardiome Pharma has higher revenue and earnings than Strongbridge Biopharma. Strongbridge Biopharma is trading at a lower price-to-earnings ratio than Cardiome Pharma, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Strongbridge Biopharma and Cardiome Pharma’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Strongbridge Biopharma N/A -181.90% -38.62%
Cardiome Pharma -112.91% -94.68% -40.25%

Risk and Volatility

Strongbridge Biopharma has a beta of 2.61, indicating that its share price is 161% more volatile than the S&P 500. Comparatively, Cardiome Pharma has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Strongbridge Biopharma and Cardiome Pharma, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Strongbridge Biopharma 0 0 4 0 3.00
Cardiome Pharma 0 0 3 0 3.00

Strongbridge Biopharma currently has a consensus target price of $13.50, suggesting a potential upside of 110.94%. Cardiome Pharma has a consensus target price of $6.42, suggesting a potential upside of 351.88%. Given Cardiome Pharma’s higher possible upside, analysts plainly believe Cardiome Pharma is more favorable than Strongbridge Biopharma.

Strongbridge Biopharma Company Profile

Strongbridge Biopharma plc is a global commercial-stage biopharmaceutical company. The Company is focused on the development and commercialization of therapies for a range of diseases. The Company’s commercial product, KEVEYIS (dichlorphenamide), is indicated for the treatment of hyperkalemic, hypokalemic and related variants of primary periodic paralysis. The United States Food and Drug Administration (FDA) has granted orphan drug designation for KEVEYIS. The Company has a clinical-stage pipeline of therapies for endocrine diseases. The Company’s lead compounds include COR-003 (levoketoconazole), a cortisol synthesis inhibitor, and COR-005 (veldoreotide), a somatostatin analog (SSA). The Company is studying COR-003 for the treatment of endogenous Cushing’s syndrome. It is investigating COR-005 for the treatment of acromegaly. Both COR-003 and COR-005 have received orphan designation from the FDA and the European Medicines Agency (EMA).

Cardiome Pharma Company Profile

Cardiome Pharma Corp. (Cardiome) is a specialty pharmaceutical company. The Company is engaged in the development and commercialization of cardiovascular therapies for heart disease. The Company’s segments are Europe and Rest of World. Cardiome has two marketed, in-hospital, cardiology products, which include BRINAVESS (vernakalant IV), approved in Europe and other territories for the conversion of onset atrial fibrillation (AF) to sinus rhythm in adults, and AGGRASTAT (tirofiban hydrochloride (HCl)), indicated for use in patients with acute coronary syndrome. Cardiome also commercializes ESMOCARD and ESMOCARD LYO (esmolol hydrochloride), a short-acting beta-blocker used to control heart rate in various cardiovascular indications, in select European markets. Cardiome has also licensed TREVYENT, a development-stage drug device combination product that is under development for pulmonary arterial hypertension, in certain regions outside the United States.

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