Comparing Sol-Gel Technologies (NASDAQ:SLGL) and Collegium Pharmaceutical (NASDAQ:COLL)
by Danessa Lincoln · The Markets DailyCollegium Pharmaceutical (NASDAQ:COLL – Get Free Report) and Sol-Gel Technologies (NASDAQ:SLGL – Get Free Report) are both small-cap healthcare companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, risk, profitability, valuation and earnings.
Analyst Ratings
This is a summary of recent recommendations and price targets for Collegium Pharmaceutical and Sol-Gel Technologies, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Collegium Pharmaceutical | 1 | 1 | 7 | 1 | 2.80 |
| Sol-Gel Technologies | 1 | 0 | 4 | 2 | 3.00 |
Collegium Pharmaceutical presently has a consensus target price of $44.88, suggesting a potential upside of 82.81%. Sol-Gel Technologies has a consensus target price of $197.50, suggesting a potential upside of 224.09%. Given Sol-Gel Technologies’ stronger consensus rating and higher probable upside, analysts clearly believe Sol-Gel Technologies is more favorable than Collegium Pharmaceutical.
Institutional and Insider Ownership
26.2% of Sol-Gel Technologies shares are held by institutional investors. 1.9% of Collegium Pharmaceutical shares are held by insiders. Comparatively, 66.5% of Sol-Gel Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Risk and Volatility
Collegium Pharmaceutical has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500. Comparatively, Sol-Gel Technologies has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500.
Valuation & Earnings
This table compares Collegium Pharmaceutical and Sol-Gel Technologies”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Collegium Pharmaceutical | $780.57 million | 1.02 | $62.87 million | $1.24 | 19.80 |
| Sol-Gel Technologies | $19.39 million | 10.28 | -$6.13 million | ($5.64) | -10.80 |
Collegium Pharmaceutical has higher revenue and earnings than Sol-Gel Technologies. Sol-Gel Technologies 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 Collegium Pharmaceutical and Sol-Gel Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Collegium Pharmaceutical | 5.93% | 91.43% | 15.57% |
| Sol-Gel Technologies | -910.14% | -44.05% | -36.96% |
Summary
Collegium Pharmaceutical beats Sol-Gel Technologies on 8 of the 15 factors compared between the two stocks.
About Collegium Pharmaceutical
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.
About Sol-Gel Technologies
Sol-Gel Technologies Ltd., together with its subsidiary Sol-Gel Technologies Inc., develops topical dermatological drugs for patients with severe skin conditions in Israel. The company offers Twyneo, a once-daily, non-antibiotic topical cream for the treatment of acne vulgaris; and Epsolay, a once-daily topical cream for the treatment of papulopustular (subtype II) rosacea. It also develops SGT-610 that is in Phase 3 clinical trials for the treatment of Gorlin Syndrome; and SGT-210, which has completed Phase I clinical trial, to treat rare hyperkeratinization disorders, such as Darier, PC, PPK, Olmsted, etc. In addition, the company is also involved in the development of generic topical dermatological drug products. It has collaboration with Padagis Israel Pharmaceuticals Ltd; and license agreements with Galderma Holding SA and Searchlight Pharma Inc. Sol-Gel Technologies Ltd. was incorporated in 1997 and is headquartered in Ness Ziona, Israel.