Comparing Pacira BioSciences (NASDAQ:PCRX) & Ocular Therapeutix (NASDAQ:OCUL)

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

Risk and Volatility

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

Profitability

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

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

Institutional and Insider Ownership

59.2% of Ocular Therapeutix shares are held by institutional investors. Comparatively, 99.7% of Pacira BioSciences shares are held by institutional investors. 3.5% of Ocular Therapeutix shares are held by insiders. Comparatively, 6.4% of Pacira BioSciences shares are held by 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.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ocular Therapeutix	$63.72 million	18.92	-$80.74 million	($1.26)	-6.02
Pacira BioSciences	$700.97 million	1.64	$41.96 million	($2.19)	-11.37

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.

Analyst Recommendations

This is a summary of current recommendations for Ocular Therapeutix and Pacira BioSciences, as provided by MarketBeat.com.

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

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

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.

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.