Oculis (NASDAQ:OCS – Get Free Report) and Terns Pharmaceuticals (NASDAQ:TERN – Get Free Report) are both small-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, earnings, risk, valuation and institutional ownership.
Insider & Institutional Ownership
22.3% of Oculis shares are owned by institutional investors. Comparatively, 98.3% of Terns Pharmaceuticals shares are owned by institutional investors. 15.1% of Terns Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares Oculis and Terns Pharmaceuticals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Oculis | -7,679.05% | -61.33% | -49.91% |
| Terns Pharmaceuticals | N/A | -39.58% | -37.69% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Oculis | 0 | 0 | 5 | 0 | 3.00 |
| Terns Pharmaceuticals | 0 | 1 | 4 | 0 | 2.80 |
Oculis currently has a consensus target price of $29.20, suggesting a potential upside of 84.81%. Terns Pharmaceuticals has a consensus target price of $15.90, suggesting a potential upside of 138.38%. Given Terns Pharmaceuticals’ higher probable upside, analysts plainly believe Terns Pharmaceuticals is more favorable than Oculis.
Risk and Volatility
Oculis has a beta of 0.3, suggesting that its stock price is 70% less volatile than the S&P 500. Comparatively, Terns Pharmaceuticals has a beta of -0.36, suggesting that its stock price is 136% less volatile than the S&P 500.
Earnings & Valuation
This table compares Oculis and Terns Pharmaceuticals”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Oculis | $980,000.00 | 652.96 | -$98.92 million | ($1.92) | -8.23 |
| Terns Pharmaceuticals | $1.00 million | 431.40 | -$90.21 million | ($1.26) | -5.29 |
Terns Pharmaceuticals has higher revenue and earnings than Oculis. Oculis is trading at a lower price-to-earnings ratio than Terns Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Summary
Terns Pharmaceuticals beats Oculis on 9 of the 13 factors compared between the two stocks.
About Oculis
Oculis Holding AG, a clinical-stage biopharmaceutical company, develops drug candidates to treat ophthalmic diseases. The company's lead product candidate is OCS-01, a topical dexamethasone optireach formulation, which is in Phase 3 clinical trials for the treatment of diabetic macular edema; OCS-02, a topical biologic candidate that is in Phase 2b clinical trials for the treatment for dry eye disease; and OCS-05, a disease modifying neuroprotective agent for neurological damage with indications for glaucoma, dry age-related macular degeneration and diabetic retinopathy, and acute optic neuritis. The company is based in Zug, Switzerland.
About Terns Pharmaceuticals
Terns Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, develops small-molecule product candidates for the treatment of oncology, metabolic dysfunction-associated steatohepatitis (MASH), and obesity. The company develops TERN-701, an allosteric BCR-ABL tyrosine kinase inhibitor (TKI) that is in phase 1 clinical trial for chronic myeloid leukemia (CML), a form of cancer that starts in bone marrow. It also develops TERN-501, a thyroid hormone receptor beta agonist with enhanced liver distribution and metabolic stability that is in Phase IIa clinical trial for the treatment of MASH; and TERN-601, a small-molecule Glucagon-Like Peptide-1 receptor agonist program that is intended to orally be administered for obesity. The company was incorporated in 2016 and is headquartered in Foster City, California.
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