Reviewing Capricor Therapeutics (NASDAQ:CAPR) & Orexigen Therapeutics (NASDAQ:OREXQ)

Capricor Therapeutics (NASDAQ:CAPR) and Orexigen Therapeutics (OTCMKTS:OREXQ) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, analyst recommendations, valuation and institutional ownership.

Institutional & Insider Ownership

4.3% of Capricor Therapeutics shares are owned by institutional investors. 16.3% of Capricor Therapeutics shares are owned by insiders. Comparatively, 13.3% of Orexigen Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Capricor Therapeutics and Orexigen Therapeutics’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Capricor Therapeutics $1.67 million 4.30 -$15.19 million ($5.20) -0.33
Orexigen Therapeutics $33.71 million 0.00 -$24.52 million N/A N/A

Capricor Therapeutics has higher earnings, but lower revenue than Orexigen Therapeutics.

Analyst Recommendations

This is a summary of recent ratings and price targets for Capricor Therapeutics and Orexigen Therapeutics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Capricor Therapeutics 0 1 1 0 2.50
Orexigen Therapeutics 0 0 0 0 N/A

Capricor Therapeutics presently has a consensus price target of $19.50, indicating a potential upside of 1,053.85%. Given Capricor Therapeutics’ higher possible upside, research analysts clearly believe Capricor Therapeutics is more favorable than Orexigen Therapeutics.

Volatility and Risk

Capricor Therapeutics has a beta of 1.65, indicating that its stock price is 65% more volatile than the S&P 500. Comparatively, Orexigen Therapeutics has a beta of 4.98, indicating that its stock price is 398% more volatile than the S&P 500.

Profitability

This table compares Capricor Therapeutics and Orexigen Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Capricor Therapeutics -660.66% -264.61% -114.31%
Orexigen Therapeutics N/A N/A N/A

Summary

Capricor Therapeutics beats Orexigen Therapeutics on 6 of the 11 factors compared between the two stocks.

About Capricor Therapeutics

Capricor Therapeutics, Inc. (NASDAQ:CAPR) is a clinical-stage biotechnology company focused on the discovery, development and commercialization of first-in-class biological therapeutics for the treatment of rare disorders. Capricor’s lead candidate, CAP-1002, is an allogeneic cell therapy that is currently in clinical development for the treatment of Duchenne muscular dystrophy. Capricor has also established itself as one of the leading companies investigating the field of extracellular vesicles and is exploring the potential of CAP-2003, a cell-free, exosome-based candidate, to treat a variety of disorders.

About Orexigen Therapeutics

Orexigen Therapeutics, Inc., a biopharmaceutical company, focuses on the development of pharmaceutical products primarily in the United States, Europe, and South Korea. It offers Contrave for the treatment of obesity. The company also offers Contrave under the Mysimba brand name. Orexigen Therapeutics, Inc. was founded in 2002 and is headquartered in La Jolla, California. On March 12, 2018, Orexigen Therapeutics, Inc., filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware.

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