Horizon Therapeutics (NASDAQ: HPTX) and Ocera Therapeutics (NASDAQ:OCRX) are both small-cap healthcare companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, institutional ownership, dividends and earnings.

Earnings and Valuation

This table compares Horizon Therapeutics and Ocera Therapeutics’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Horizon Therapeutics N/A N/A N/A ($0.03) -1,533.00
Ocera Therapeutics $610,000.00 75.18 -$26.89 million ($0.97) -1.78

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

Institutional & Insider Ownership

18.5% of Ocera Therapeutics shares are owned by institutional investors. 7.2% of Ocera Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Horizon Therapeutics and Ocera Therapeutics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Horizon Therapeutics 0 0 0 0 N/A
Ocera Therapeutics 0 3 1 0 2.25

Ocera Therapeutics has a consensus target price of $1.92, indicating a potential upside of 10.79%. Given Ocera Therapeutics’ higher probable upside, analysts plainly believe Ocera Therapeutics is more favorable than Horizon Therapeutics.

Profitability

This table compares Horizon Therapeutics and Ocera Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Horizon Therapeutics 23.13% 21.30% 15.42%
Ocera Therapeutics N/A -228.93% -103.71%

Summary

Ocera Therapeutics beats Horizon Therapeutics on 5 of the 9 factors compared between the two stocks.

About Horizon Therapeutics

Horizon Therapeutics, Inc., formerly Hyperion Therapeutics, Inc., is a biopharmaceutical company. The Company is engaged in the development and commercialization of therapeutics to treat disorders in the areas of orphan diseases. The Company’s products include RAVICTI (glycerol phenylbutyrate) oral liquid, BUPHENYL and AMMONAPS (sodium phenylbutyrate) tablets and powder. The Company’s products are used to lower ammonia in the blood. RAVICTI is used to treat urea cycle disorders (UCD). BUPHENYL is indicated as an adjunctive therapy in the chronic management of patients with UCDs involving deficiencies of carbamylphosphate synthetase (CPS), ornithine transcarbamylase (OTC), or argininosuccinic acid synthetase (AS). The Company sells BUPHENYL under the brand name AMMONAPS in Europe and the Middle East.

About Ocera Therapeutics

Ocera Therapeutics, Inc. is a clinical-stage biopharmaceutical company. The Company is focused on acute and chronic orphan liver diseases. The Company is focused on the development and commercialization of its clinical candidate, OCR-002, for the treatment of hepatic encephalopathy (HE). OCR-002 is a molecule, ornithine phenylacetate, which functions as an ammonia scavenger. It is conducting a randomized, placebo-controlled double blind Phase IIb clinical trial to evaluate the efficacy of intravenous administration of OCR-002 IV formulation in reducing the severity of HE symptoms among HE patients. The Company also conducted a Phase IIa investigator-sponsored trial of OCR-002 in Spain in patients with upper gastrointestinal bleeding associated with liver cirrhosis. It is developing an oral form of OCR-002 to provide continuity of care for HE patients, where the intravenous form is used for hospital-based acute care and the oral form for chronic maintenance care post discharge.

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