Sierra Oncology (NASDAQ:SRRA) and Alimera Sciences (NASDAQ:ALIM) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, earnings, profitability, risk and valuation.
Institutional and Insider Ownership
65.2% of Sierra Oncology shares are held by institutional investors. Comparatively, 50.3% of Alimera Sciences shares are held by institutional investors. 5.6% of Sierra Oncology shares are held by company insiders. Comparatively, 14.9% of Alimera Sciences shares are held by company 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.
This table compares Sierra Oncology and Alimera Sciences’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Sierra Oncology||N/A||N/A||-$53.33 million||($0.75)||-1.87|
|Alimera Sciences||$46.97 million||1.54||-$16.38 million||($0.29)||-3.52|
Alimera Sciences has higher revenue and earnings than Sierra Oncology. Alimera Sciences is trading at a lower price-to-earnings ratio than Sierra Oncology, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Sierra Oncology has a beta of 1.78, meaning that its stock price is 78% more volatile than the S&P 500. Comparatively, Alimera Sciences has a beta of 2.22, meaning that its stock price is 122% more volatile than the S&P 500.
This table compares Sierra Oncology and Alimera Sciences’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings for Sierra Oncology and Alimera Sciences, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Alimera Sciences has a consensus price target of $2.83, indicating a potential upside of 177.78%. Given Alimera Sciences’ higher probable upside, analysts plainly believe Alimera Sciences is more favorable than Sierra Oncology.
Alimera Sciences beats Sierra Oncology on 8 of the 12 factors compared between the two stocks.
About Sierra Oncology
Sierra Oncology, Inc., a clinical stage drug development company, is advancing targeted therapeutics for the treatment of patients with unmet medical needs in hematology and oncology. Its lead drug candidate, momelotinib, is a selective and orally-bioavailable JAK1, JAK2, and ACVR1 inhibitor that has been investigated in two completed Phase 3 trials for the treatment of myelofibrosis and has demonstrated a differentiated therapeutic profile encompassing anemia-related benefits, as well as achieving substantive splenic volume reduction and constitutional symptom control. The company is also advancing SRA737, which is being investigated in two Phase 1/2 clinical trials primarily focused on patients with ovarian cancer; and SRA141, an orally bioavailable small molecule inhibitor of cell division cycle 7 kinase. The company was formerly known as ProNAi Therapeutics, Inc. and changed its name to Sierra Oncology, Inc. in January 2017. Sierra Oncology, Inc. was founded in 2003 and is headquartered in Vancouver, Canada.
About Alimera Sciences
Alimera Sciences, Inc., a pharmaceutical company, engages in the research, development, and commercialization of prescription ophthalmic pharmaceuticals in the United States and internationally. It focuses on diseases affecting the back of the eye or retina. The company offers ILUVIEN, an intravitreal implant for the treatment of diabetic macular edema (DME), which is a disease of the retina that affects individuals with diabetes and could lead to severe vision loss and blindness. Its ILUVIEN is inserted in the back of the patient's eye in a non-surgical procedure, which allows for a self-sealing wound by delivering a continuous microdose of the non-proprietary corticosteroid fluocinolone acetonide in the eye. The company has a collaboration agreement with EyePoint Pharmaceuticals US, Inc. for the development and sale of proprietary insert technology to deliver other corticosteroids to the back of the eye for the treatment and prevention of eye diseases in humans or to treat diabetic macular edema. It sells its products through sales force, as well as through distributors. The company serves physician offices, pharmacies, and hospitals. Alimera Sciences, Inc. was founded in 2003 and is headquartered in Alpharetta, Georgia.
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