Cara Therapeutics (NASDAQ:CARA – Get Free Report) and Cumberland Pharmaceuticals (NASDAQ:CPIX – Get Free Report) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, dividends, valuation, analyst recommendations, earnings and institutional ownership.
Risk & Volatility
Cara Therapeutics has a beta of 0.41, indicating that its share price is 59% less volatile than the S&P 500. Comparatively, Cumberland Pharmaceuticals has a beta of -0.24, indicating that its share price is 124% less volatile than the S&P 500.
Valuation & Earnings
This table compares Cara Therapeutics and Cumberland Pharmaceuticals”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cara Therapeutics | $7.14 million | 0.00 | -$118.51 million | ($21.01) | N/A |
| Cumberland Pharmaceuticals | $37.87 million | 1.76 | -$6.28 million | ($0.47) | -10.13 |
Analyst Ratings
This is a summary of recent ratings and price targets for Cara Therapeutics and Cumberland Pharmaceuticals, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cara Therapeutics | 0 | 5 | 0 | 0 | 2.00 |
| Cumberland Pharmaceuticals | 0 | 0 | 0 | 0 | 0.00 |
Cara Therapeutics currently has a consensus target price of $83.52, indicating a potential upside of 0.00%. Given Cara Therapeutics’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Cara Therapeutics is more favorable than Cumberland Pharmaceuticals.
Insider and Institutional Ownership
44.7% of Cara Therapeutics shares are owned by institutional investors. Comparatively, 15.5% of Cumberland Pharmaceuticals shares are owned by institutional investors. 3.1% of Cara Therapeutics shares are owned by insiders. Comparatively, 44.8% of Cumberland Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Cara Therapeutics and Cumberland Pharmaceuticals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cara Therapeutics | -1,099.76% | -367.97% | -107.43% |
| Cumberland Pharmaceuticals | -29.54% | -9.50% | -3.19% |
Summary
Cumberland Pharmaceuticals beats Cara Therapeutics on 7 of the 12 factors compared between the two stocks.
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.
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.
Receive News & Ratings for Cara Therapeutics Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Cara Therapeutics and related companies with MarketBeat.com's FREE daily email newsletter.
