Comparing Gemini Therapeutics (NASDAQ:GMTX) & Collegium Pharmaceutical (NASDAQ:COLL)

Gemini Therapeutics (NASDAQ:GMTX) and Collegium Pharmaceutical (NASDAQ:COLL) are both small-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, earnings, profitability and analyst recommendations.

Analyst Recommendations

This is a summary of recent recommendations for Gemini Therapeutics and Collegium Pharmaceutical, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gemini Therapeutics	0	0	0	0	N/A
Collegium Pharmaceutical	0	1	1	0	2.50

Collegium Pharmaceutical has a consensus price target of $35.50, indicating a potential upside of 56.73%. Given Collegium Pharmaceutical’s higher possible upside, analysts clearly believe Collegium Pharmaceutical is more favorable than Gemini Therapeutics.

Insider and Institutional Ownership

75.4% of Gemini Therapeutics shares are owned by institutional investors. 12.9% of Gemini Therapeutics shares are owned by company insiders. Comparatively, 3.7% of Collegium Pharmaceutical shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

Gemini Therapeutics has a beta of -0.12, suggesting that its stock price is 112% less volatile than the S&P 500. Comparatively, Collegium Pharmaceutical has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500.

Profitability

This table compares Gemini Therapeutics and Collegium Pharmaceutical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gemini Therapeutics	N/A	-38.78%	-35.88%
Collegium Pharmaceutical	-2.08%	87.81%	14.12%

Earnings and Valuation

This table compares Gemini Therapeutics and Collegium Pharmaceutical’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gemini Therapeutics	N/A	N/A	-$71.87 million	($1.00)	-1.35
Collegium Pharmaceutical	$463.93 million	1.70	-$25.00 million	($0.37)	-61.21

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

Summary

Collegium Pharmaceutical beats Gemini Therapeutics on 8 of the 12 factors compared between the two stocks.

About Gemini Therapeutics

Gemini Therapeutics, Inc., a clinical stage precision medicine company, engages in developing various therapeutic compounds for treating genetically defined age-related macular degeneration (AMD). Its lead candidate is GEM103, a recombinant form of the human complement factor H protein to treat dry AMD patients. The company also develops GEM307 for treatment of systemic diseases. Gemini Therapeutics, Inc. was founded in 2015 and is headquartered in Cambridge, Massachusetts.

About Collegium Pharmaceutical

Collegium Pharmaceutical, Inc., a specialty pharmaceutical company, develops and commercializes medicines for pain management. Its portfolio includes Xtampza ER, an abuse-deterrent and oral formulation of oxycodone for the management of pain severe enough to require daily, around-the-clock, long-term opioid treatment; Nucynta ER and Nucynta IR, which are extended-release and immediate-release formulations of tapentadol; Belbuca, a buccal film that contains buprenorphine; and Symproic, an oral formulation of naldemedine for the treatment of opioid-induced constipation in adult patients with chronic non-cancer pain. The company was formerly known as Collegium Pharmaceuticals, Inc. and changed its name to Collegium Pharmaceutical, Inc. in October 2003. Collegium Pharmaceutical, Inc. was incorporated in 2002 and is headquartered in Stoughton, Massachusetts.