Terns Pharmaceuticals (NASDAQ:TERN – Get Free Report) and Oculis (NASDAQ:OCS – Get Free Report) are both small-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, profitability, dividends, valuation, analyst recommendations and institutional ownership.
Institutional and Insider Ownership
98.3% of Terns Pharmaceuticals shares are owned by institutional investors. Comparatively, 22.3% of Oculis shares are owned by institutional investors. 15.1% of Terns Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Risk and Volatility
Terns Pharmaceuticals has a beta of -0.36, indicating that its stock price is 136% less volatile than the S&P 500. Comparatively, Oculis has a beta of 0.3, indicating that its stock price is 70% less volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Terns Pharmaceuticals | 0 | 1 | 4 | 0 | 2.80 |
| Oculis | 0 | 0 | 5 | 0 | 3.00 |
Terns Pharmaceuticals presently has a consensus price target of $15.90, suggesting a potential upside of 114.57%. Oculis has a consensus price target of $29.20, suggesting a potential upside of 108.13%. Given Terns Pharmaceuticals’ higher probable upside, equities research analysts clearly believe Terns Pharmaceuticals is more favorable than Oculis.
Profitability
This table compares Terns Pharmaceuticals and Oculis’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Terns Pharmaceuticals | N/A | -39.58% | -37.69% |
| Oculis | -7,679.05% | -61.33% | -49.91% |
Valuation & Earnings
This table compares Terns Pharmaceuticals and Oculis”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Terns Pharmaceuticals | $1.00 million | 479.26 | -$90.21 million | ($1.26) | -5.88 |
| Oculis | $980,000.00 | 579.87 | -$98.92 million | ($1.78) | -7.88 |
Terns Pharmaceuticals has higher revenue and earnings than Oculis. Oculis is trading at a lower price-to-earnings ratio than Terns Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Summary
Terns Pharmaceuticals beats Oculis on 10 of the 14 factors compared between the two stocks.
About Terns Pharmaceuticals
Terns Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, develops small-molecule product candidates for the treatment of oncology, metabolic dysfunction-associated steatohepatitis (MASH), and obesity. The company develops TERN-701, an allosteric BCR-ABL tyrosine kinase inhibitor (TKI) that is in phase 1 clinical trial for chronic myeloid leukemia (CML), a form of cancer that starts in bone marrow. It also develops TERN-501, a thyroid hormone receptor beta agonist with enhanced liver distribution and metabolic stability that is in Phase IIa clinical trial for the treatment of MASH; and TERN-601, a small-molecule Glucagon-Like Peptide-1 receptor agonist program that is intended to orally be administered for obesity. The company was incorporated in 2016 and is headquartered in Foster City, California.
About Oculis
Oculis Holding AG, a clinical-stage biopharmaceutical company, develops drug candidates to treat ophthalmic diseases. The company's lead product candidate is OCS-01, a topical dexamethasone optireach formulation, which is in Phase 3 clinical trials for the treatment of diabetic macular edema; OCS-02, a topical biologic candidate that is in Phase 2b clinical trials for the treatment for dry eye disease; and OCS-05, a disease modifying neuroprotective agent for neurological damage with indications for glaucoma, dry age-related macular degeneration and diabetic retinopathy, and acute optic neuritis. The company is based in Zug, Switzerland.
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