Biostar Pharmaceuticals (OTCMKTS:BSPM) versus Heatwurx (NASDAQ:PCSA) Critical Review

Biostar Pharmaceuticals (OTCMKTS:BSPM) and Heatwurx (NASDAQ:PCSA) are both medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.

Analyst Ratings

This is a summary of recent ratings and price targets for Biostar Pharmaceuticals and Heatwurx, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Biostar Pharmaceuticals	0	0	0	0	0.00
Heatwurx	1	1	1	0	2.00

Heatwurx has a consensus target price of $25.00, suggesting a potential upside of 628.86%. Given Heatwurx’s stronger consensus rating and higher possible upside, analysts plainly believe Heatwurx is more favorable than Biostar Pharmaceuticals.

Institutional and Insider Ownership

91.9% of Heatwurx shares are owned by institutional investors. 17.2% of Biostar Pharmaceuticals shares are owned by insiders. Comparatively, 2.4% of Heatwurx shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Biostar Pharmaceuticals has a beta of 61.36, suggesting that its share price is 6,036% more volatile than the S&P 500. Comparatively, Heatwurx has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500.

Profitability

This table compares Biostar Pharmaceuticals and Heatwurx’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Biostar Pharmaceuticals	N/A	N/A	N/A
Heatwurx	N/A	-301.42%	-217.32%

Valuation & Earnings

This table compares Biostar Pharmaceuticals and Heatwurx”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Biostar Pharmaceuticals	N/A	N/A	N/A	N/A	N/A
Heatwurx	N/A	N/A	-$11.85 million	($34.00)	-0.10

About Biostar Pharmaceuticals

Biostar Pharmaceuticals, Inc. develops, manufactures, and markets over-the-counter (OTC) and prescription pharmaceutical products for various diseases and conditions in the People's Republic of China. The company principally offers Xin Ao Xing Oleanolic Acid capsule, an OTC medicine for chronic hepatitis B. It also provides 12 other OTC products and 17 prescription-based pharmaceuticals. The company's OTC products also comprise Ganwang compound paracetamol and amantadine hydrochloride capsule for the relief of common cold, runny nose, sore throat, headache, and fever; Tianqi Dysmenorrhea capsule, a traditional Chinese medicine used for pain and other symptoms associated with menstruation; Deafness Tongqiao pills for hepatobiliary Huosheng, head swelling, deafness and tinnitus, ear pus, dry stool, and urine-yellow; Wenweishu capsules for the treatment of chronic gastritis and pain of epigastric cold; Zhitongtougu ointment for treating joint pain, swelling, tenderness, or dysfunction; and Chuzhang Zehaifu tablets for cataract. Its prescription pharmaceutical products include Danshen granules; Taohuasan pediatric medicines; Jingang tablets; Danxiang Rhinitis tablets; Yanlixiao capsules; Piracetam tablets; Huangyangning tablets; Hyperthyroidism capsules; Fosfomycin Calcium capsules; Qianlietong capsules; Yituo Erythromycin particles; Danshen tablets; Muxiang Shunqi pills; Sifangwei capsules; and Aspirin Enteric-coated tablets. The company also operates a Website that serves as Internet-based China Hepatitis Internet hospital, which offers HBV patients with information on HBV and treatment options, as well as methods to purchase HBV medicines. Biostar Pharmaceuticals, Inc. sells its products through distributors and a network of sales people in approximately 28 provinces. The company was incorporated in 2007 and is headquartered in Xianyang, the People's Republic of China.

About Heatwurx

Processa Pharmaceuticals, Inc., a clinical stage biopharmaceutical company, develops chemotherapy drugs to improve the safety and efficacy of cancer treatment. Its drugs are modifications of existing FDA-approved oncology drugs resulting in an alteration of the metabolism and/or distribution of drugs while maintaining the existing mechanisms of killing the cancer cells. The company's pipeline includes three chemotherapy drugs comprising Gemcitabine, PCS3117 that has completed Phase 2a clinical trials to treat pancreatic, biliary tract, lung, ovarian, breast, and other cancers; Capecitabine, a combination of PCS6422 and capecitabine that has completed Phase 1b clinical trials to treat metastatic colorectal, gastrointestinal, breast, pancreatic, and other cancers; and Irinotecan, PCS11T that is in pre-clinical studies to treat lung, colorectal, gastrointestinal, pancreatic, and other cancers. It also develops non-oncology drugs consisting of PCS12852 for treatment of gastroparesis; and PCS499 to treat patients with ulcerative and non-ulcerative necrobiosis lipoidica. The company has license agreements with Elion Oncology, Inc.; Ocuphire Pharma, Inc.; Aposense, Ltd.; Yuhan Corporation; and CoNCERT Pharmaceuticals, Inc. Processa Pharmaceuticals, Inc. was founded in 2011 and is based in Hanover, Maryland.