Comparing Sage Therapeutics (NASDAQ:SAGE) & Phibro Animal Health (NASDAQ:PAHC)

Sage Therapeutics (NASDAQ:SAGE) and Phibro Animal Health (NASDAQ:PAHC) are both small-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Profitability

This table compares Sage Therapeutics and Phibro Animal Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sage Therapeutics	-971.50%	-68.18%	-60.84%
Phibro Animal Health	1.75%	25.35%	6.21%

Analyst Ratings

This is a summary of current ratings and recommmendations for Sage Therapeutics and Phibro Animal Health, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sage Therapeutics	2	16	2	0	2.00
Phibro Animal Health	2	2	0	0	1.50

Sage Therapeutics presently has a consensus price target of $9.65, suggesting a potential upside of 37.03%. Phibro Animal Health has a consensus price target of $21.00, suggesting a potential downside of 13.12%. Given Sage Therapeutics’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Sage Therapeutics is more favorable than Phibro Animal Health.

Institutional & Insider Ownership

99.2% of Sage Therapeutics shares are owned by institutional investors. Comparatively, 99.3% of Phibro Animal Health shares are owned by institutional investors. 5.5% of Sage Therapeutics shares are owned by company insiders. Comparatively, 50.1% of Phibro Animal Health shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Sage Therapeutics has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500. Comparatively, Phibro Animal Health has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500.

Earnings and Valuation

This table compares Sage Therapeutics and Phibro Animal Health”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sage Therapeutics	$41.24 million	10.50	-$400.67 million	($6.59)	-1.07
Phibro Animal Health	$1.11 billion	0.89	$2.42 million	$0.48	50.35

Phibro Animal Health has higher revenue and earnings than Sage Therapeutics. Sage Therapeutics is trading at a lower price-to-earnings ratio than Phibro Animal Health, indicating that it is currently the more affordable of the two stocks.

Summary

Phibro Animal Health beats Sage Therapeutics on 9 of the 14 factors compared between the two stocks.

About Sage Therapeutics

Sage Therapeutics, Inc., a biopharmaceutical company, develops and commercializes brain health medicines. Its product candidates include ZULRESSO, a CIV injection for the treatment of postpartum depression (PPD) in adults; and ZURZUVAE, a neuroactive steroid, a positive allosteric modulator of GABAA receptors, targeting both synaptic and extrasynaptic GABAA receptors, for the treatment of postpartum depression. Its product pipeline also comprises SAGE-324, a compound that is in Phase II clinical trial to treat essential tremors, as well as has completed Phase I clinical trial for epilepsy and Parkinson's diseases; and SAGE-718, an oxysterol-based positive allosteric modulator of the NMDA receptor, which is in Phase II clinical trial for the treatment of depression, Huntington's disease, Parkinson's diseases, Alzheimer's disease, attention deficit hyperactivity disorder, schizophrenia, and neuropathic pain. The company has a strategic collaboration with Shionogi & Co., Ltd. for the development and commercialization of zuranolone in Japan, Taiwan, and South Korea; and a collaboration and license agreement with Biogen MA Inc. to jointly develop and commercialize SAGE-217 and SAGE-324 products. The company was formerly known as Sterogen Biopharma, Inc. and changed its name to Sage Therapeutics, Inc. in September 2011. Sage Therapeutics, Inc. was incorporated in 2010 and is headquartered in Cambridge, Massachusetts.

About Phibro Animal Health

Phibro Animal Health Corporation operates as an animal health and mineral nutrition company in the United States, Israel, Brazil, Ireland, and internationally. It operates through three segments: Animal Health, Mineral Nutrition, and Performance Products. The company develops, manufactures, and markets various products for food and companion animals including poultry, swine, beef and dairy cattle, aquaculture, and dogs. It also offers animal health products, such as antibacterials, anticoccidials, nutritional specialty, and vaccines and vaccine adjuvants for animal’s health and performance, food safety, and animal welfare; and engages in development, manufacturing, and marketing of microbial and bioproducts for various applications serving animal health and nutrition, environmental, industrial, and agricultural customers. In addition, the company develops, manufactures, and markets conventionally licensed and autogenous vaccine products, as well as adjuvants for animal vaccine manufacturers. Further, it provides formulations and concentrations of trace minerals, such as zinc, manganese, copper, iron, and other compounds to fortify the daily feed requirements of their livestock’s diets and maintain optimal balance of trace elements in animals. Additionally, the company offers specialty ingredients for personal care, industrial chemical, and chemical catalyst industries. It sells its animal health and mineral nutrition products through local sales offices to integrated poultry, swine, and cattle producers, as well as through commercial animal feed manufacturers, wholesalers, and distributors. The company was formerly known as Philipp Brothers Chemicals, Inc. and changed its name to Phibro Animal Health Corporation in July 2003. Phibro Animal Health Corporation was founded in 1946 and is headquartered in Teaneck, New Jersey.