Critical Review: Ocular Therapeutix (NASDAQ:OCUL) versus Jaguar Animal Health (NASDAQ:JAGX)

Jaguar Animal Health (NASDAQ:JAGX) and Ocular Therapeutix (NASDAQ:OCUL) are both small-cap healthcare companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, valuation, risk, earnings, dividends, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a summary of current ratings and target prices for Jaguar Animal Health and Ocular Therapeutix, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jaguar Animal Health	1	0	0	0	1.00
Ocular Therapeutix	1	1	9	1	2.83

Ocular Therapeutix has a consensus target price of $22.86, indicating a potential upside of 253.28%. Given Ocular Therapeutix’s stronger consensus rating and higher probable upside, analysts clearly believe Ocular Therapeutix is more favorable than Jaguar Animal Health.

Valuation & Earnings

This table compares Jaguar Animal Health and Ocular Therapeutix”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jaguar Animal Health	$11.51 million	0.07	-$53.43 million	($3,731.33)	-0.00
Ocular Therapeutix	$52.05 million	27.30	-$265.94 million	($1.42)	-4.56

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

Risk and Volatility

Jaguar Animal Health has a beta of -0.11, suggesting that its stock price is 111% less volatile than the S&P 500. Comparatively, Ocular Therapeutix has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.

Insider & Institutional Ownership

12.0% of Jaguar Animal Health shares are owned by institutional investors. Comparatively, 59.2% of Ocular Therapeutix shares are owned by institutional investors. 0.1% of Jaguar Animal Health shares are owned by insiders. Comparatively, 3.1% of Ocular Therapeutix 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.

Profitability

This table compares Jaguar Animal Health and Ocular Therapeutix’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Jaguar Animal Health	-187.88%	N/A	-131.45%
Ocular Therapeutix	-579.10%	-59.89%	-45.99%

Summary

Ocular Therapeutix beats Jaguar Animal Health on 11 of the 15 factors compared between the two stocks.

About Jaguar Animal Health

Jaguar Health, Inc., a commercial stage pharmaceuticals company, focuses on developing plant-based prescription medicines for people and animals with gastrointestinal distress, specifically chronic and debilitating diarrhea. The company operates through two segments, Human Health and Animal Health. It focuses on developing and commercializing prescription and non-prescription products for companion and production animals; and human products. The company's products include Mytesi, an anti-secretory antidiarrheal drug for the symptomatic relief of non-infectious diarrhea in adults with HIV/AIDS on antiretroviral therapy; and Canalevia-CA1, a prescription drug product for chemotherapy-induced diarrhea in dogs. It is also developing Crofelemer, an anti-secretory antidiarrheal drug, which is in Phase 3 clinical trial for or prophylaxis of diarrhea in adult cancer patients, and to address rare/orphan disease indications, including short bowel syndrome with intestinal failure and/or congenital diarrheal disorders; diarrhea-predominant irritable bowel syndrome; and for idiopathic/functional diarrhea. In addition, the company is developing NP-300, a second-generation antidiarrheal drug for symptomatic relief and treatment of moderate-to-severe diarrhea. The company is headquartered in San Francisco, California.

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.