Contrasting Collegium Pharmaceutical (NASDAQ:COLL) & Aurinia Pharmaceuticals (NASDAQ:AUPH)

Aurinia Pharmaceuticals (NASDAQ:AUPH – Get Free Report) and Collegium Pharmaceutical (NASDAQ:COLL – Get Free Report) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, earnings, dividends and risk.

Insider & Institutional Ownership

36.8% of Aurinia Pharmaceuticals shares are held by institutional investors. 4.3% of Aurinia Pharmaceuticals shares are held by insiders. Comparatively, 4.0% of Collegium Pharmaceutical 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 Recommendations

This is a summary of current ratings for Aurinia Pharmaceuticals and Collegium Pharmaceutical, as reported by MarketBeat.

Aurinia Pharmaceuticals currently has a consensus price target of $10.00, suggesting a potential upside of 41.24%. Collegium Pharmaceutical has a consensus price target of $42.60, suggesting a potential upside of 12.94%. Given Aurinia Pharmaceuticals’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Aurinia Pharmaceuticals is more favorable than Collegium Pharmaceutical.

Volatility and Risk

Aurinia Pharmaceuticals has a beta of 1.44, meaning that its stock price is 44% more volatile than the S&P 500. Comparatively, Collegium Pharmaceutical has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500.

Valuation and Earnings

This table compares Aurinia Pharmaceuticals and Collegium Pharmaceutical”s gross revenue, earnings per share (EPS) and valuation.

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

Profitability

This table compares Aurinia Pharmaceuticals and Collegium Pharmaceutical’s net margins, return on equity and return on assets.

Summary

Collegium Pharmaceutical beats Aurinia Pharmaceuticals on 7 of the 13 factors compared between the two stocks.

About Aurinia Pharmaceuticals

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Aurinia Pharmaceuticals Inc., a commercial-stage biopharmaceutical company, focuses on developing and commercializing therapies to treat various diseases with unmet medical need in the United States. It offers LUPKYNIS for the treatment of adult patients with active lupus nephritis. It has a collaboration and license agreement with Otsuka Pharmaceutical Co., Ltd. The company was incorporated in 1993 and is headquartered in Edmonton, Canada.

About Collegium Pharmaceutical

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Collegium Pharmaceutical, Inc., a specialty pharmaceutical company, engages in the development and commercialization of medicines for pain management. Its portfolio includes Xtampza ER, an abuse-deterrent, extended-release, and oral formulation of oxycodone for the management of pain severe enough to require daily, around-the-clock, long-term opioid treatment; Nucynta ER and Nucynta IR, which are extended-release and immediate-release formulations of tapentadol, indicated for the management of acute, severe, and persistent pain; Belbuca, a buccal film that contains buprenorphine; and Symproic, an oral formulation of naldemedine for the treatment of opioid-induced constipation in adult patients with chronic non-cancer pain. The company was formerly known as Collegium Pharmaceuticals, Inc. and changed its name to Collegium Pharmaceutical, Inc. in October 2003. Collegium Pharmaceutical, Inc. was incorporated in 2002 and is headquartered in Stoughton, Massachusetts.