Head-To-Head Review: DURECT (NASDAQ:DRRX) versus Alimera Sciences (NASDAQ:ALIM)

DURECT (NASDAQ:DRRXGet Free Report) and Alimera Sciences (NASDAQ:ALIMGet Free Report) are both small-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, analyst recommendations, risk and dividends.

Analyst Recommendations

This is a summary of current recommendations and price targets for DURECT and Alimera Sciences, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DURECT 0 2 2 0 2.50
Alimera Sciences 0 0 2 0 3.00

DURECT currently has a consensus price target of $35.00, indicating a potential upside of 4,017.65%. Alimera Sciences has a consensus price target of $6.50, indicating a potential upside of 70.16%. Given DURECT’s higher probable upside, equities analysts clearly believe DURECT is more favorable than Alimera Sciences.

Earnings and Valuation

This table compares DURECT and Alimera Sciences’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
DURECT $9.19 million 2.76 -$35.33 million ($1.58) -0.54
Alimera Sciences $54.13 million 3.70 -$18.11 million ($2.63) -1.45

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

Profitability

This table compares DURECT and Alimera Sciences’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DURECT -398.65% -289.99% -78.74%
Alimera Sciences -29.40% N/A -13.05%

Risk and Volatility

DURECT has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500. Comparatively, Alimera Sciences has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500.

Insider & Institutional Ownership

32.8% of DURECT shares are held by institutional investors. 4.3% of DURECT shares are held by company insiders. Comparatively, 31.4% of Alimera Sciences shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Alimera Sciences beats DURECT on 9 of the 13 factors compared between the two stocks.

About DURECT

(Get Free Report)

DURECT Corporation, a biopharmaceutical company, researches and develops medicines based on its epigenetic regulator and pharmaceutical programs. The company offers ALZET product line that consists of osmotic pumps and accessories used for research in mice, rats, and other laboratory animals. It also develops larsucosterol (DUR-928), an endogenous, orally bioavailable small molecule that is in Phase IIb clinical trial to play a regulatory role in lipid metabolism, stress and inflammatory responses, and cell death and survival to treat alcohol-associated hepatitis, as well as completed Phase Ib clinical trial to treat patients with nonalcoholic steatohepatitis. In addition, the company offers POSIMIR, a post-surgical pain product to deliver bupivacaine over three days in adults; and Methydur to treat attention deficit hyperactivity disorder. It markets and sells its ALZET lines through direct sales force in the United States, as well as through a network of distributors in Japan, Europe, and internationally. The company has strategic collaboration and other agreements with Virginia Commonwealth University Intellectual Property Foundation; Indivior UK Ltd.; and Innocoll Pharmaceuticals Limited. DURECT Corporation was incorporated in 1998 and is headquartered in Cupertino, California.

About Alimera Sciences

(Get Free Report)

Alimera Sciences, Inc., a pharmaceutical company, engages in the development and commercialization of ophthalmic pharmaceuticals. It operates through United States, internationally, and Operating Cost segments. It offers ILUVIEN, an intravitreal implant for the treatment of diabetic macular edema (DME), which is a disease of the retina that affects individuals with diabetes and lead to severe vision loss and blindness; and to prevent relapse in recurrent non-infectious uveitis affecting the posterior segment of the eye. The company sells its products to physician offices, pharmacies, clinics, and hospitals through direct sales and distributors. It has a collaboration agreement with EyePoint Pharmaceuticals US, Inc. for the development and sale of insert technology to deliver other corticosteroids to the back of the eye for the treatment and prevention of eye diseases in humans or to treat diabetic macular edema. Alimera Sciences, Inc. was incorporated in 2003 and is headquartered in Alpharetta, Georgia.

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