DARA Biosciences (NASDAQ: DARA) and TherapeuticsMD (NASDAQ:TXMD) are both small-cap healthcare companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, valuation, earnings, profitability, institutional ownership, risk and dividends.

Earnings and Valuation

This table compares DARA Biosciences and TherapeuticsMD’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
DARA Biosciences N/A N/A N/A ($0.52) -1.69
TherapeuticsMD $19.36 million 66.95 -$89.87 million ($0.40) -14.97

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

Risk & Volatility

DARA Biosciences has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500. Comparatively, TherapeuticsMD has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500.

Insider and Institutional Ownership

76.8% of TherapeuticsMD shares are owned by institutional investors. 23.9% of TherapeuticsMD shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for DARA Biosciences and TherapeuticsMD, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DARA Biosciences 0 0 0 0 N/A
TherapeuticsMD 0 1 10 0 2.91

TherapeuticsMD has a consensus price target of $14.72, suggesting a potential upside of 145.78%. Given TherapeuticsMD’s higher possible upside, analysts plainly believe TherapeuticsMD is more favorable than DARA Biosciences.

Profitability

This table compares DARA Biosciences and TherapeuticsMD’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DARA Biosciences -228.42% -145.61% -100.38%
TherapeuticsMD -457.00% -65.16% -58.66%

Summary

TherapeuticsMD beats DARA Biosciences on 9 of the 10 factors compared between the two stocks.

About DARA Biosciences

DARA BioSciences Inc is specialty pharmaceutical company based in the United States. The Company’s primary focus is on the commercialization of oncology treatment and oncology supportive care pharmaceutical products, including Soltamox, an oral solution of tamoxifen citrate; cancer support therapeutics, including Gelclair, indicated for the treatment of oral mucositis and Bionect, for the management of irritation of the skin as well as first and second degree burns, and Three Mission Pharmacal products, including Ferralet 90 (for anemia), Binosto (alendronate sodium effervescent tablet indicated for the treatment of osteoporosis) and Aquoral (for cancer related dry mouth). The Company has a clinical development asset, KRN5500, which is a Phase II product candidate targeted for treating cancer patients with painful treatment-refractory chronic chemotherapy induced peripheral neuropathy. The Company is a subsidiary of Midatech Pharma Plc.

About TherapeuticsMD

TherapeuticsMD, Inc. is a women’s healthcare company engaged in creating and commercializing products for women. The Company is focused on pursuing regulatory approvals and pre-commercialization activities necessary for commercialization of its hormone therapy pharmaceutical products. Its drug candidates used in clinical trials are designed to alleviate symptoms of and reduce health risks resulting from menopause-related hormone deficiencies, including hot flashes, osteoporosis and vaginal discomfort. With its SYMBODA technology, it is developing hormone therapy pharmaceutical products to enable delivery of bio-identical hormones through dosage forms and administration routes. Its product line includes vitaTrue, vitaPearl, vitaMedMD Plus, vitaMedMD One Prenatal Multivitamin, vitaMedMD Plus Rx Prenatal Multivitamin, vitaMedMD One Rx Prenatal Multivitamin, vitaMedMD Iron 21/7, vitaMedMD Vitamin D3 50,000 IU, BocaGreenMD Prena1 Pearl and BocaGreenMD Prena1 Chew.

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