Head-To-Head Survey: Lyra Therapeutics (NASDAQ:LYRA) versus Collegium Pharmaceutical (NASDAQ:COLL)

Lyra Therapeutics (NASDAQ:LYRA) and Collegium Pharmaceutical (NASDAQ:COLL) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, profitability, dividends, institutional ownership, risk and earnings.

Risk and Volatility

Lyra Therapeutics has a beta of 0.11, meaning that its share price is 89% less volatile than the S&P 500. Comparatively, Collegium Pharmaceutical has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lyra Therapeutics	-5,043.64%	-404.56%	-60.06%
Collegium Pharmaceutical	5.13%	97.28%	13.87%

Insider and Institutional Ownership

95.6% of Lyra Therapeutics shares are owned by institutional investors. 3.3% of Lyra Therapeutics shares are owned by insiders. Comparatively, 2.5% of Collegium Pharmaceutical shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Lyra Therapeutics and Collegium Pharmaceutical”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lyra Therapeutics	$1.53 million	7.40	-$93.43 million	($29.01)	-0.24
Collegium Pharmaceutical	$707.01 million	1.51	$69.19 million	$1.04	32.63

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

Analyst Ratings

This is a summary of current recommendations and price targets for Lyra Therapeutics and Collegium Pharmaceutical, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lyra Therapeutics	1	1	0	0	1.50
Collegium Pharmaceutical	0	2	1	2	3.00

Lyra Therapeutics presently has a consensus target price of $100.00, suggesting a potential upside of 1,349.28%. Collegium Pharmaceutical has a consensus target price of $42.33, suggesting a potential upside of 24.73%. Given Lyra Therapeutics’ higher probable upside, research analysts clearly believe Lyra Therapeutics is more favorable than Collegium Pharmaceutical.

Summary

Collegium Pharmaceutical beats Lyra Therapeutics on 11 of the 15 factors compared between the two stocks.

About Lyra Therapeutics

Lyra Therapeutics, Inc., a clinical-stage biotechnology company, focuses on the development and commercialization of novel integrated drug and delivery solutions for the localized treatment of patients with ear, nose, and throat diseases. It's XTreo technology platform is designed to deliver medicines directly to the affected tissue for sustained periods with a single administration. The company's product candidates include LYR-210, an anti-inflammatory implantable drug matrix for the treatment of chronic rhinosinusitis (CRS), which is in Phase III clinical trial; and LYR-220 for CRS patients with and without nasal polyps. It has a collaboration agreement with LianBio Inflammatory Limited to develop and commercialize LYR-210 in mainland China, Hong Kong, Taiwan, Macau, South Korea, Singapore, and Thailand. The company was formerly known as 480 Biomedical, Inc. and changed its name to Lyra Therapeutics, Inc. in July 2018. Lyra Therapeutics, Inc. was incorporated in 2005 and is headquartered in Watertown, Massachusetts.

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.