Amphastar Pharmaceuticals (NASDAQ: AMPH) and Collegium Pharmaceutical (NASDAQ:COLL) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, profitability, analyst recommendations and valuation.

Analyst Ratings

This is a breakdown of current recommendations for Amphastar Pharmaceuticals and Collegium Pharmaceutical, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Amphastar Pharmaceuticals 0 1 5 0 2.83
Collegium Pharmaceutical 0 0 5 0 3.00

Amphastar Pharmaceuticals currently has a consensus target price of $19.83, indicating a potential upside of 30.31%. Collegium Pharmaceutical has a consensus target price of $22.20, indicating a potential upside of 120.46%. Given Collegium Pharmaceutical’s stronger consensus rating and higher probable upside, analysts plainly believe Collegium Pharmaceutical is more favorable than Amphastar Pharmaceuticals.

Earnings & Valuation

This table compares Amphastar Pharmaceuticals and Collegium Pharmaceutical’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Amphastar Pharmaceuticals $249.62 million 2.82 $17.41 million $0.08 190.27
Collegium Pharmaceutical $7.44 million 40.02 -$97.95 million ($3.66) -2.75

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

Volatility & Risk

Amphastar Pharmaceuticals has a beta of 1.65, suggesting that its share price is 65% more volatile than the S&P 500. Comparatively, Collegium Pharmaceutical has a beta of -0.16, suggesting that its share price is 116% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Amphastar Pharmaceuticals 1.61% 2.42% 1.84%
Collegium Pharmaceutical -1,319.39% -93.73% -74.81%

Insider and Institutional Ownership

43.8% of Amphastar Pharmaceuticals shares are held by institutional investors. Comparatively, 82.1% of Collegium Pharmaceutical shares are held by institutional investors. 11.1% of Amphastar Pharmaceuticals shares are held by insiders. Comparatively, 25.8% of Collegium Pharmaceutical shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Amphastar Pharmaceuticals beats Collegium Pharmaceutical on 7 of the 12 factors compared between the two stocks.

About Amphastar Pharmaceuticals

Amphastar Pharmaceuticals, Inc. is a specialty pharmaceutical company. The Company focuses primarily on developing, manufacturing, marketing and selling generic and injectable, inhalation and intranasal products. The Company has two segments: finished pharmaceutical products and active pharmaceutical ingredients (API) products. The finished pharmaceutical products segment manufactures, markets and distributes enoxaparin, Cortrosyn, Amphadase, naloxone, lidocaine jelly, as well as various other critical and non-critical care drugs. The API segment manufactures and distributes recombinant human insulin and porcine insulin. The Company also manufactures and sells insulin API. As of December 31, 2016, the Company manufactured and sold 19 products. As of December 31, 2016, the Company developed a portfolio of 15 generic abbreviated new drug applications (ANDAs) three generic biosimilar product candidates and six injectable and inhalation product candidates.

About Collegium Pharmaceutical

Collegium Pharmaceutical, Inc. is a specialty pharmaceutical company. The Company is engaged in developing and commercializing abuse-deterrent products that incorporate its DETERx platform technology for the treatment of chronic pain and other diseases. Its products include Xtampza ER and ONSOLIS. Its DETERx platform provides extended-release drug delivery, while safeguarding against common methods of abuse and tampering, including crushing, chewing, and heating and injecting. Xtampza ER is designed to provide adequate pain control while maintaining its extended-release drug release profile after being subjected to common methods of abuse and accidental misuse. ONSOLIS is a Transmucosal Immediate-Release Fentanyl (TIRF) film indicated for the management of breakthrough pain in cancer patients (BTPc), 18 years of age and older, who are already receiving and who are tolerant to opioid therapy for their underlying persistent cancer pain.

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