Verona Pharma (NASDAQ:VRNA) and Ocular Therapeutix (NASDAQ:OCUL) Financial Contrast

Verona Pharma (NASDAQ:VRNA) and Ocular Therapeutix (NASDAQ:OCUL) are both medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, institutional ownership, valuation, profitability, analyst recommendations, earnings and dividends.

Earnings and Valuation

This table compares Verona Pharma and Ocular Therapeutix”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Verona Pharma	$5.62 million	742.18	-$54.37 million	($1.92)	-27.03
Ocular Therapeutix	$58.44 million	21.55	-$80.74 million	($1.32)	-6.07

Verona Pharma has higher earnings, but lower revenue than Ocular Therapeutix. Verona Pharma is trading at a lower price-to-earnings ratio than Ocular Therapeutix, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Verona Pharma and Ocular Therapeutix, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Verona Pharma	0	0	7	1	3.13
Ocular Therapeutix	0	1	6	0	2.86

Verona Pharma currently has a consensus target price of $50.57, indicating a potential downside of 2.54%. Ocular Therapeutix has a consensus target price of $16.71, indicating a potential upside of 108.67%. Given Ocular Therapeutix’s higher probable upside, analysts plainly believe Ocular Therapeutix is more favorable than Verona Pharma.

Profitability

This table compares Verona Pharma and Ocular Therapeutix’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Verona Pharma	N/A	-79.54%	-43.49%
Ocular Therapeutix	-283.74%	-45.18%	-30.87%

Insider & Institutional Ownership

85.9% of Verona Pharma shares are held by institutional investors. Comparatively, 59.2% of Ocular Therapeutix shares are held by institutional investors. 4.8% of Verona Pharma shares are held by company insiders. Comparatively, 3.5% of Ocular Therapeutix shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Verona Pharma has a beta of 0.4, suggesting that its share price is 60% less volatile than the S&P 500. Comparatively, Ocular Therapeutix has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500.

Summary

Verona Pharma beats Ocular Therapeutix on 8 of the 15 factors compared between the two stocks.

About Verona Pharma

Verona Pharma plc, a clinical stage biopharmaceutical company, focuses on development and commercialization of therapies for the treatment of respiratory diseases with unmet medical needs. The company's product candidate is ensifentrine, an inhaled and dual inhibitor of the phosphodiesterase (PDE) 3 and PDE4 enzymes that acts as both a bronchodilator and an anti-inflammatory agent in a single compound, which is in Phase 3 clinical trials for the treatment of chronic obstructive pulmonary disease, asthma, and cystic fibrosis. It is developing ensifentrine in three formulations, including nebulizer, dry powder inhaler, and pressurized metered-dose inhaler. The company was incorporated in 2005 and is headquartered in London, the United Kingdom.

About Ocular Therapeutix

Ocular Therapeutix, Inc., a biopharmaceutical company, focuses on the formulation, development, and commercialization of therapies for diseases and conditions of the eye using its bioresorbable hydrogel-based formulation technology in the United States. The company markets DEXTENZA, a dexamethasone ophthalmic insert to treat post-surgical ocular inflammation and pain following ophthalmic surgery, as well as allergic conjunctivitis. It is developing AXPAXLI, an axitinib intravitreal implant that is in phase 3 trials for the treatment of wet age-related macular degeneration and other retinal diseases; PAXTRAVA, a travoprost intracameral implant, which is in phase 2 clinical trials for the treatment of open-angle glaucoma or ocular hypertension; OTX-CSI, a cyclosporine intracanalicular insert that has completed phase 2 clinical trials for the treatment of dry eye disease; and OTX-DED, a dexamethasone intracanalicular insert, which is in phase 2 clinical trials for the short-term treatment of the signs and symptoms of dry eye disease. In addition, the company offers modulator for intermediate and late dry age-related macular degeneration; and gene delivery for inherited retinal degenerations and protein biofactory indications. The company has a strategic collaboration with Regeneron Pharmaceuticals, Inc. (Regeneron) for the development and commercialization of products using the company’s sustained-release hydrogel in combination with Regeneron’s large molecule VEGF-targeting compounds for the treatment of retinal diseases; and AffaMed Therapeutics Limited for the development and commercialization of DEXTENZA and OTX-TIC. Ocular Therapeutix, Inc. was incorporated in 2006 and is headquartered in Bedford, Massachusetts.