Alimera Sciences (NASDAQ: ALIM) and Transition Therapeutics (NASDAQ:TTHI) are both healthcare companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, risk, valuation and profitability.
This table compares Alimera Sciences and Transition Therapeutics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and recommmendations for Alimera Sciences and Transition Therapeutics, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Alimera Sciences currently has a consensus price target of $4.00, indicating a potential upside of 200.75%. Given Alimera Sciences’ higher possible upside, equities research analysts clearly believe Alimera Sciences is more favorable than Transition Therapeutics.
Insider & Institutional Ownership
41.8% of Alimera Sciences shares are owned by institutional investors. 14.7% of Alimera Sciences 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.
Earnings & Valuation
This table compares Alimera Sciences and Transition Therapeutics’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Alimera Sciences||$34.33 million||2.68||-$33.17 million||($0.31)||-4.29|
Transition Therapeutics has lower revenue, but higher earnings than Alimera Sciences. Alimera Sciences is trading at a lower price-to-earnings ratio than Transition Therapeutics, indicating that it is currently the more affordable of the two stocks.
Alimera Sciences beats Transition Therapeutics on 8 of the 10 factors compared between the two stocks.
About Alimera Sciences
Alimera Sciences, Inc. (Alimera) is a pharmaceutical company. The Company is engaged in the research, development and commercialization of prescription ophthalmic pharmaceuticals. The Company operates through two segments: U.S. and International. The Company focuses on diseases affecting the back of the eye or retina. The Company’s product is ILUVIEN, which is developed to treat diabetic macular edema (DME). DME is a disease of the retina that affects individuals with diabetes and can lead to severe vision loss and blindness. In the United States, ILUVIEN is indicated for the treatment of DME in patients who have been treated with a course of corticosteroids and did not have a rise in intraocular pressure (IOP). In the European Economic Area (EEA) countries, ILUVIEN is indicated for the treatment of vision impairment associated with DME considered insufficiently responsive to available therapies.
About Transition Therapeutics
Transition Therapeutics Inc. is a product-focused biopharmaceutical company. The Company’s principal business activity is the researching and developing of therapeutic agents. The Company is developing therapeutics for central nervous system (CNS) and metabolic disease indications. The Company’s technologies are focused on the treatment of agitation and aggression in Alzheimer’s disease and diabetes. The Company’s subsidiary, Transition Therapeutics Ireland Limited (Transition Ireland), is developing two drug candidates: neuropsychiatric candidate ELND005 and androgen deficiency candidate TT701. The Company’s subsidiary, Waratah Pharmaceuticals Inc. (Waratah), is developing diabetes drug candidate TT401. The Company’s other two entities provide development services in support of the clinical and non-clinical activities of Transition Ireland and Waratah.
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