Cumberland Pharmaceuticals (NASDAQ:CPIX – Get Free Report) and Cara Therapeutics (NASDAQ:CARA – Get Free Report) are both small-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, earnings and profitability.
Valuation and Earnings
This table compares Cumberland Pharmaceuticals and Cara Therapeutics”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cumberland Pharmaceuticals | $37.87 million | 1.76 | -$6.28 million | ($0.47) | -10.13 |
| Cara Therapeutics | $7.14 million | 0.00 | -$118.51 million | ($21.01) | N/A |
Cumberland Pharmaceuticals has higher revenue and earnings than Cara Therapeutics. Cumberland Pharmaceuticals is trading at a lower price-to-earnings ratio than Cara Therapeutics, indicating that it is currently the more affordable of the two stocks.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Cumberland Pharmaceuticals | -29.54% | -9.50% | -3.19% |
| Cara Therapeutics | -1,099.76% | -367.97% | -107.43% |
Institutional & Insider Ownership
15.5% of Cumberland Pharmaceuticals shares are owned by institutional investors. Comparatively, 44.7% of Cara Therapeutics shares are owned by institutional investors. 44.8% of Cumberland Pharmaceuticals shares are owned by company insiders. Comparatively, 3.1% of Cara Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Risk & Volatility
Cumberland Pharmaceuticals has a beta of -0.24, meaning that its share price is 124% less volatile than the S&P 500. Comparatively, Cara Therapeutics has a beta of 0.41, meaning that its share price is 59% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings for Cumberland Pharmaceuticals and Cara Therapeutics, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cumberland Pharmaceuticals | 0 | 0 | 0 | 0 | 0.00 |
| Cara Therapeutics | 0 | 5 | 0 | 0 | 2.00 |
Cara Therapeutics has a consensus target price of $83.52, suggesting a potential upside of 0.00%. Given Cara Therapeutics’ stronger consensus rating and higher probable upside, analysts plainly believe Cara Therapeutics is more favorable than Cumberland Pharmaceuticals.
Summary
Cumberland Pharmaceuticals beats Cara Therapeutics on 7 of the 12 factors compared between the two stocks.
About Cumberland Pharmaceuticals
Cumberland Pharmaceuticals Inc., a specialty pharmaceutical company, focuses on the acquisition, development, and commercialization of prescription products for hospital acute care, gastroenterology, and oncology in the United States and internationally. The company offers Acetadote, an injection for the treatment of acetaminophen poisoning; Caldolor, an injection for the treatment of pain and fever; Kristalose, a prescription laxative oral solution for the treatment of constipation; Omeclamox-Pak for the treatment of Helicobacter pylori infection and duodenal ulcer disease; Vaprisol, an injection for treating euvolemic and hypervolemic hyponatremia; Sancuso, an injection for the treatment of chemotherapy treatment; and Vibativ, an injection for the treatment of certain serious bacterial infections, including hospital-acquired and ventilator-associated bacterial pneumonia, as well as complicated skin and skin structure infections. It develops RediTrex injection for the treatment of active rheumatoid, juvenile idiopathic, and severe psoriatic arthritis, as well as disabling psoriasis. In addition, the company is developing ifetroban, a product candidate that is in phase II clinical trial for the treatment of aspirin-exacerbated respiratory disease, systemic sclerosis, and duchenne muscular dystrophy; and has completed phase II clinical trial for the treatment of hepatorenal syndrome and portal hypertension. Further, it develops a clinical program for the use of ifetroban to treat progressive fibrosing interstitial lung diseases. The company was incorporated in 1999 and is headquartered in Nashville, Tennessee.
About Cara Therapeutics
Cara Therapeutics, Inc., a development-stage biopharmaceutical company, focuses on developing and commercializing therapeutics treatment of chronic pruritus in the United States. The company’s lead product is KORSUVA (difelikefalin) injection for the treatment of moderate-to-severe pruritus associated with chronic kidney disease (CKD) in adults undergoing hemodialysis. It also develops Oral difelikefalin, which is in Phase II/III clinical trial to treat chronic pruritus with notalgia paresthetica. The company has license agreements with Maruishi Pharmaceutical Co., Ltd to develop, manufacture, and commercialize drug products containing difelikefalin for acute pain and uremic pruritus in Japan; Vifor Fresenius Medical Care Renal Pharma Ltd. development and commercialization of KORSUVA injection for the treatment of moderate-to-severe pruritus in adult patients undergoing hemodialysis; and Chong Kun Dang Pharmaceutical Corporation to develop, manufacture, and commercialize drug products containing difelikefalin in South Korea. Cara Therapeutics, Inc. was incorporated in 2004 and is based in Stamford, Connecticut.
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