Head to Head Review: Pacira BioSciences (NASDAQ:PCRX) and Ocular Therapeutix (NASDAQ:OCUL)

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

Analyst Recommendations

This is a summary of current ratings and price targets for Pacira BioSciences and Ocular Therapeutix, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pacira BioSciences	1	4	4	0	2.33
Ocular Therapeutix	0	1	7	0	2.88

Pacira BioSciences presently has a consensus price target of $27.22, indicating a potential upside of 9.28%. Ocular Therapeutix has a consensus price target of $16.38, indicating a potential upside of 116.03%. Given Ocular Therapeutix’s stronger consensus rating and higher probable upside, analysts clearly believe Ocular Therapeutix is more favorable than Pacira BioSciences.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Pacira BioSciences	-13.07%	13.42%	7.19%
Ocular Therapeutix	-283.74%	-45.18%	-30.87%

Earnings and Valuation

This table compares Pacira BioSciences 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
Pacira BioSciences	$700.97 million	1.64	$41.96 million	($2.19)	-11.37
Ocular Therapeutix	$63.72 million	18.92	-$80.74 million	($1.26)	-6.02

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

Insider and Institutional Ownership

99.7% of Pacira BioSciences shares are owned by institutional investors. Comparatively, 59.2% of Ocular Therapeutix shares are owned by institutional investors. 6.4% of Pacira BioSciences shares are owned by insiders. Comparatively, 3.5% of Ocular Therapeutix shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Pacira BioSciences has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500. Comparatively, Ocular Therapeutix has a beta of 1.34, meaning that its stock price is 34% more volatile than the S&P 500.

About Pacira BioSciences

Pacira Biosciences, Inc. is a holding company, which engages in the provision of non-opioid pain management and regenerative health solutions to improve patients’ journeys along the neural pain pathway. Its products include EXPAREL, iovera, and DepoFoam. The company was founded in December 2006 and is headquartered in Tampa, FL.

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.