TherapeuticsMD (NASDAQ:TXMD) and Cambrex (NYSE:CBM) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, earnings, profitability and risk.
This table compares TherapeuticsMD and Cambrex’s net margins, return on equity and return on assets.
This is a breakdown of current recommendations for TherapeuticsMD and Cambrex, as provided by MarketBeat.
TherapeuticsMD presently has a consensus price target of $15.40, suggesting a potential upside of 217.53%. Cambrex has a consensus price target of $75.50, suggesting a potential upside of 36.85%. Given TherapeuticsMD’s stronger consensus rating and higher possible upside, research analysts plainly believe TherapeuticsMD is more favorable than Cambrex.
Valuation & Earnings
This table compares TherapeuticsMD and Cambrex’s gross revenue, earnings per share (EPS) and valuation.
Cambrex has higher revenue and earnings than TherapeuticsMD. TherapeuticsMD is trading at a lower price-to-earnings ratio than Cambrex, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
TherapeuticsMD has a beta of 1.4, indicating that its stock price is 40% more volatile than the S&P 500. Comparatively, Cambrex has a beta of 2.42, indicating that its stock price is 142% more volatile than the S&P 500.
Institutional and Insider Ownership
66.2% of TherapeuticsMD shares are owned by institutional investors. 22.9% of TherapeuticsMD shares are owned by insiders. Comparatively, 2.4% of Cambrex 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.
Cambrex beats TherapeuticsMD on 8 of the 14 factors compared between the two stocks.
TherapeuticsMD, Inc. operates as a women's health care product company. Its pipeline of hormone therapy drug candidates include TX-001HR, a combination of estradiol and progesterone drug candidate under clinical trials for the treatment of moderate to severe vasomotor symptoms due to menopause; TX-002HR, a natural progesterone formulation for the treatment of secondary amenorrhea without the potentially allergenic component of peanut oil; and TX-004HR, an applicator-free vaginal estradiol softgel drug candidate for the treatment of moderate to severe dyspareunia, a symptom of vulvar and vaginal atrophy in post-menopausal women with vaginal linings that do not receive enough estrogen. The company also manufactures and distributes branded and generic prescription prenatal vitamins under the vitaMedMD and BocaGreenMD brands. It markets its products primarily through a direct national sales force to health care providers in the OB/GYN market space. TherapeuticsMD, Inc. was founded in 2008 and is headquartered in Boca Raton, Florida.
Cambrex Corporation, a life sciences company, provides various products and services for the development and commercialization of new and generic therapeutics worldwide. Its products comprise active pharmaceutical ingredients and pharmaceutical intermediates that are used in the production of prescription and over-the-counter drug products, as well as other fine chemicals. The company serves generic drug companies; and companies that discover and commercialize small molecule human therapeutics. The company sells its products directly, as well as through independent agents. Cambrex Corporation was founded in 1981 and is headquartered in East Rutherford, New Jersey.