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

Profitability

This table compares Ra Pharmaceuticals and Oncomed Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ra Pharmaceuticals N/A -70.54% -63.17%
Oncomed Pharmaceuticals -26.64% N/A -10.47%

Institutional & Insider Ownership

72.3% of Ra Pharmaceuticals shares are held by institutional investors. Comparatively, 48.9% of Oncomed Pharmaceuticals shares are held by institutional investors. 11.4% of Ra Pharmaceuticals shares are held by insiders. Comparatively, 20.3% of Oncomed Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for Ra Pharmaceuticals and Oncomed Pharmaceuticals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ra Pharmaceuticals 0 0 6 0 3.00
Oncomed Pharmaceuticals 0 3 1 0 2.25

Ra Pharmaceuticals presently has a consensus target price of $19.60, indicating a potential upside of 63.61%. Oncomed Pharmaceuticals has a consensus target price of $4.50, indicating a potential upside of 85.95%. Given Oncomed Pharmaceuticals’ higher possible upside, analysts clearly believe Oncomed Pharmaceuticals is more favorable than Ra Pharmaceuticals.

Valuation & Earnings

This table compares Ra Pharmaceuticals and Oncomed Pharmaceuticals’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ra Pharmaceuticals $4.93 million 78.59 -$54.43 million ($2.41) -4.97
Oncomed Pharmaceuticals $38.15 million 2.44 -$39.06 million ($1.04) -2.33

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

Risk and Volatility

Ra Pharmaceuticals has a beta of 2.01, indicating that its share price is 101% more volatile than the S&P 500. Comparatively, Oncomed Pharmaceuticals has a beta of 1.71, indicating that its share price is 71% more volatile than the S&P 500.

Summary

Oncomed Pharmaceuticals beats Ra Pharmaceuticals on 8 of the 14 factors compared between the two stocks.

About Ra Pharmaceuticals

Ra Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, develops therapeutics for the treatment of diseases caused by excessive or uncontrolled activation of the complement system in the United States. The company's peptide chemistry platform enables the production of synthetic macrocyclic peptides that combine the diversity and specificity of antibodies with the pharmacological properties of small molecules. Its lead product candidate is RA101495, an injection into the tissue under the skin that has completed Phase II clinical trial for the treatment of paroxysmal nocturnal hemoglobinuria (PNH); and is in Phase II clinical trial for treating patients with generalized myasthenia gravis (gMG), as well as in Phase 1b clinical trial for treating atypical hemolytic uremic syndrome (aHUS) and lupus nephritis (LN). The company's preclinical testing products include Factor D inhibition for orphan renal and dense deposit diseases, and C3 glomerulonephritis; Oral C5 inhibitor for PNH, gMG, aHUS, LN, and central nervous system (CNS) diseases; and other complement inhibitors for autoimmune/CNS diseases. It has multi-target collaboration and license agreement with Merck & Co., Inc. Ra Pharmaceuticals, Inc. was founded in 2008 and is headquartered in Cambridge, Massachusetts.

About Oncomed Pharmaceuticals

OncoMed Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on discovering and developing novel therapeutics that address the fundamental biology driving cancer's growth, resistance, recurrence, and metastasis. The company's product candidates and preclinical programs include navicixizumab (anti-DLL4/VEGF Bispecific, OMP-305B83), a monoclonal antibody that targets Delta-like ligand 4 and vascular endothelial growth factor, which has completed a single-agent Phase Ia clinical trial in patients with advanced solid tumors, as well as in two Phase Ib clinical trials for patients with platinum-resistant ovarian cancer and metastatic colorectal cancer; anti-TIGIT (OMP-313M32), a T-cell immunoreceptor with immunoglobulin and ITIM domain, which is in Phase Ia clinical trial for patients with advanced or metastatic solid tumors; GITRL-Fc (OMP-336B11), a glucocorticoid-induced tumor necrosis factor receptor -related protein and its ligand, which is in Phase Ia clinical trial for patients with advanced or metastatic solid tumors; and rosmantuzumab (anti-RSPO3, OMP-131R10), a monoclonal antibody targeting the RSPO-LGR CSC pathway. It has strategic alliances with Celgene Corporation for discovery, development, and commercialization of novel small molecule therapeutics; and Bayer Pharma AG for discovery, development, and commercialization of anti- cancer stem cell biologic and small molecule therapeutics targeting the Wnt signaling pathway. OncoMed Pharmaceuticals, Inc. was founded in 2004 and is headquartered in Redwood City, California.

Receive News & Ratings for Ra Pharmaceuticals Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Ra Pharmaceuticals and related companies with MarketBeat.com's FREE daily email newsletter.