Ophthotech Corporation (NASDAQ: OPHT) and Seres Therapeutics (NASDAQ:MCRB) are both small-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, profitability, risk, institutional ownership and analyst recommendations.
This table compares Ophthotech Corporation and Seres Therapeutics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
61.6% of Ophthotech Corporation shares are owned by institutional investors. Comparatively, 74.8% of Seres Therapeutics shares are owned by institutional investors. 2.0% of Ophthotech Corporation shares are owned by insiders. Comparatively, 41.9% of Seres Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This is a breakdown of current ratings and price targets for Ophthotech Corporation and Seres Therapeutics, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ophthotech Corporation presently has a consensus target price of $60.88, indicating a potential upside of 2,315.67%. Seres Therapeutics has a consensus target price of $18.25, indicating a potential upside of 24.40%. Given Ophthotech Corporation’s higher probable upside, analysts clearly believe Ophthotech Corporation is more favorable than Seres Therapeutics.
Valuation and Earnings
This table compares Ophthotech Corporation and Seres Therapeutics’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Ophthotech Corporation||$10.31 million||8.79||-$181.99 million||($5.39)||-0.47|
|Seres Therapeutics||$22.08 million||26.92||-$92.65 million||($2.41)||-6.09|
Seres Therapeutics has higher revenue and earnings than Ophthotech Corporation. Seres Therapeutics is trading at a lower price-to-earnings ratio than Ophthotech Corporation, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Ophthotech Corporation has a beta of 1.49, suggesting that its stock price is 49% more volatile than the S&P 500. Comparatively, Seres Therapeutics has a beta of 0.29, suggesting that its stock price is 71% less volatile than the S&P 500.
Seres Therapeutics beats Ophthotech Corporation on 10 of the 13 factors compared between the two stocks.
Ophthotech Corporation Company Profile
Ophthotech Corporation is a biopharmaceutical company. The Company is engaged in the development of therapeutics to treat ophthalmic diseases, with a focus on diseases of the back of the eye. Its primary focus is developing therapeutics for age-related macular degeneration (AMD), which is a disorder of the central portion of the retina, known as the macula, that may result in blindness. Its product candidates include Fovista and Zimura. Fovista is designed to target platelet derived growth factor (PDGF) in combination with anti-vascular endothelial growth factor (VEGF) drugs to disrupt the formation of abnormal new blood vessels in wet AMD. Zimura targets complement factor C5, a central component of the complement cascade. The Company has initiated a Phase II/III clinical trial investigating Zimura for treatment of geographic atrophy.
Seres Therapeutics Company Profile
Seres Therapeutics, Inc. is a microbiome therapeutics platform company. The Company is engaged in developing a class of biological drugs, which is referred as Ecobiotic microbiome therapeutics. The Company’s drugs are designed to restore health by repairing the function of a dysbiotic microbiome. The Company is focused on implementing its microbiome therapeutics platform to develop Ecobiotic microbiome therapeutics that treats dysbiosis in the colonic microbiome. SER-109 is its lead product candidate, which is designed to prevent further recurrences of Clostridium difficile infection (CDI). The Company is developing additional product candidates, including SER-262 to prevent an initial recurrence of primary CDI; SER-287 and SER-301, to treat inflammatory bowel disease (IBD), including ulcerative colitis, and SER-155 to treat enteric bacterial pathogens.
Receive News & Ratings for Ophthotech Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Ophthotech Corporation and related companies with our FREE daily email newsletter.