Sophiris Bio (NASDAQ: SPHS) and Theravance Biopharma (NASDAQ:TBPH) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, earnings, dividends, institutional ownership, valuation, profitability and analyst recommendations.

Valuation & Earnings

This table compares Sophiris Bio and Theravance Biopharma’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sophiris Bio N/A N/A -$11.16 million ($0.18) -11.89
Theravance Biopharma $48.65 million 27.44 -$190.66 million ($5.16) -4.78

Sophiris Bio has higher earnings, but lower revenue than Theravance Biopharma. Sophiris Bio is trading at a lower price-to-earnings ratio than Theravance Biopharma, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Sophiris Bio has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500. Comparatively, Theravance Biopharma has a beta of 2.09, meaning that its stock price is 109% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Sophiris Bio and Theravance Biopharma, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sophiris Bio 0 0 4 0 3.00
Theravance Biopharma 1 0 5 0 2.67

Sophiris Bio currently has a consensus price target of $6.25, indicating a potential upside of 192.06%. Theravance Biopharma has a consensus price target of $42.67, indicating a potential upside of 72.88%. Given Sophiris Bio’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Sophiris Bio is more favorable than Theravance Biopharma.

Profitability

This table compares Sophiris Bio and Theravance Biopharma’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sophiris Bio N/A -85.20% -38.89%
Theravance Biopharma -1,604.87% -99.43% -47.10%

Institutional & Insider Ownership

5.5% of Sophiris Bio shares are owned by institutional investors. Comparatively, 86.1% of Theravance Biopharma shares are owned by institutional investors. 3.9% of Sophiris Bio shares are owned by insiders. Comparatively, 6.1% of Theravance Biopharma shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Sophiris Bio beats Theravance Biopharma on 7 of the 13 factors compared between the two stocks.

Sophiris Bio Company Profile

Sophiris Bio, Inc., formerly Protox Therapeutics Inc., is a Canada-based biopharmaceutical company focused on the research, development and commercialization of products for the treatment of urological diseases. The Company has operations based in San Diego developing a treatment for benign prostatic hyperplasia (benign prostatic hyperplasia (BPH) or enlarged prostate). The Company has partnered with Kissei Pharmaceuticals for the development and commercialization of PRX302 in Japan. Sophiris Bio, Inc. is advancing a pipeline of receptor targeted fusion proteins based on three complementary technology platforms: PORxin, INxin and HUMxin. It focuses on diseases of the prostate via its PORxin platform candidate, PRX302, which has completed three clinical trials for the treatment of BPH, as well as two clinical trials for the treatment of localized recurrent prostate cancer.

Theravance Biopharma Company Profile

Theravance Biopharma, Inc. is a biopharmaceutical company. The Company is engaged in creating medicines for patients suffering from serious illness. The Company operates in the segment of discovery (research), development and commercialization of human therapeutics. The Company’s pipeline of internally discovered product candidates includes medicines to address the unmet needs of patients being treated for serious conditions primarily in the acute care setting. Its commercial product VIBATIV (telavancin) is a once-daily dual-mechanism antibiotic approved in the United States and Europe for certain difficult-to-treat infections. Its Revefenacin (TD-4208) is a long-acting muscarinic antagonist (LAMA) being developed as a nebulized treatment for chronic obstructive pulmonary disease. Its neprilysin (NEP) inhibitor program is designed to develop selective NEP inhibitors for the treatment of a range of cardiovascular and renal diseases.

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