Biohaven (NYSE:BHVN) & Collegium Pharmaceutical (NASDAQ:COLL) Financial Analysis

Collegium Pharmaceutical (NASDAQ:COLL) and Biohaven (NYSE:BHVN) are both medical companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, risk, valuation, earnings, analyst recommendations, profitability and dividends.

Analyst Ratings

This is a summary of current ratings and target prices for Collegium Pharmaceutical and Biohaven, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Collegium Pharmaceutical	0	2	3	0	2.60
Biohaven	0	0	13	1	3.07

Collegium Pharmaceutical currently has a consensus price target of $42.60, indicating a potential upside of 38.36%. Biohaven has a consensus price target of $62.75, indicating a potential upside of 38.80%. Given Biohaven’s stronger consensus rating and higher probable upside, analysts clearly believe Biohaven is more favorable than Collegium Pharmaceutical.

Institutional & Insider Ownership

88.8% of Biohaven shares are owned by institutional investors. 4.0% of Collegium Pharmaceutical shares are owned by company insiders. Comparatively, 16.0% of Biohaven 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

Collegium Pharmaceutical has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500. Comparatively, Biohaven has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500.

Valuation & Earnings

This table compares Collegium Pharmaceutical and Biohaven”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Collegium Pharmaceutical	$566.77 million	1.75	$48.15 million	$2.32	13.27
Biohaven	$462.51 million	9.88	-$408.17 million	($9.35)	-4.84

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Collegium Pharmaceutical	14.78%	104.67%	18.38%
Biohaven	N/A	-225.12%	-158.89%

Summary

Biohaven beats Collegium Pharmaceutical on 8 of the 15 factors compared between the two stocks.

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.

About Biohaven

Biohaven Ltd., together with its subsidiaries, focuses on discovering, developing, and commercializing therapies for immunology, neuroscience, and oncology worldwide. The company's pipeline products include Troriluzole, which is in Phase 3 clinical trial for the treatment of neurological and neuropsychiatric illnesses; BHV-5500 that blocks glutamate signaling mediated by post-synaptic NMDA receptors; Taldefgrobep Alfa, which is in Phase 3 clinical trial for the treatment of spinal muscular atrophy and obesity; BHV-7000, a candidate in Phase 2/3 clinical trials for the treatment of focal and generalized epilepsy, bipolar disorder, and major depressive disorder; BHV-2100 that is in Phase 1 clinical trials for the treatment of migraines and neuropathic pain; and BHV-8000, a product candidate in Phase 1 clinical trials for the treatment of early Alzheimer's and Parkinson's disease, sclerosis, and amyloid-related imaging abnormalities. It also offers BHV-1300, a product candidate in Phase 1 clinical trials to treat rheumatoid arthritis; BHV-1310 for the treatment of generalized myasthenia gravis and acute exacerbations or flares; BHV-1400 to treat IgA Nephropathy; and BHV-1600 for the treatment of dilated cardiomyopathy. In addition, the company develops BHV-1100, a product candidate in Phase 1a/1b clinical trials for multiple myeloma patients; BHV-1510, a preclinical product that targets carcinomas; and BHV-1500 for Hodgkin's lymphoma. It has license, development, and commercialization agreements with Yale University, AstraZeneca, University of Connecticut, Artizan Biosciences Inc., Reliant Glycosciences LLC, Katholieke Universiteit Leuven, BMS, and Highlightll Pharmaceutical Co. Ltd. The company was formerly known as Biohaven Research Ltd and changed its name to Biohaven Ltd. in September 2022. Biohaven Ltd. was incorporated in 2022 and is headquartered in New Haven, Connecticut.