Reviewing Pacira BioSciences (NASDAQ:PCRX) and Puma Biotechnology (NASDAQ:PBYI)

Pacira BioSciences (NASDAQ:PCRX) and Puma Biotechnology (NASDAQ:PBYI) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, earnings, dividends and risk.

Volatility and Risk

Pacira BioSciences has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500. Comparatively, Puma Biotechnology has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500.

Insider & Institutional Ownership

99.7% of Pacira BioSciences shares are held by institutional investors. Comparatively, 61.3% of Puma Biotechnology shares are held by institutional investors. 6.4% of Pacira BioSciences shares are held by insiders. Comparatively, 23.7% of Puma Biotechnology shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Pacira BioSciences and Puma Biotechnology’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pacira BioSciences	$674.98 million	1.37	$41.96 million	$1.43	13.90
Puma Biotechnology	$235.60 million	0.75	$21.59 million	$0.33	11.15

Pacira BioSciences has higher revenue and earnings than Puma Biotechnology. Puma Biotechnology is trading at a lower price-to-earnings ratio than Pacira BioSciences, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings for Pacira BioSciences and Puma Biotechnology, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pacira BioSciences	0	1	9	0	2.90
Puma Biotechnology	0	0	1	0	3.00

Pacira BioSciences currently has a consensus price target of $43.60, suggesting a potential upside of 118.66%. Puma Biotechnology has a consensus price target of $7.00, suggesting a potential upside of 86.67%. Given Pacira BioSciences’ higher probable upside, equities research analysts clearly believe Pacira BioSciences is more favorable than Puma Biotechnology.

Profitability

This table compares Pacira BioSciences and Puma Biotechnology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pacira BioSciences	10.34%	12.98%	7.08%
Puma Biotechnology	6.79%	35.49%	7.26%

Summary

Pacira BioSciences beats Puma Biotechnology on 9 of the 14 factors compared between the two stocks.

About Pacira BioSciences

Pacira BioSciences, Inc. engages in the development, manufacture, marketing, distribution, and sale of non-opioid pain management and regenerative health solutions to healthcare practitioners in the United States. The company offers EXPAREL, a bupivacaine liposome injectable suspension; ZILRETTA, a triamcinolone acetonide extended-release injectable suspension; and iovera system, a non-opioid handheld cryoanalgesia device used to produce controlled doses of cold temperature to targeted nerves. It has a development and commercialization, and supply agreement with Aratana Therapeutics, Inc. for NOCITA, a bupivacaine liposome injectable suspension product. The company was formerly known as Pacira Pharmaceuticals, Inc. and changed its name to Pacira BioSciences, Inc. in April 2019. Pacira BioSciences, Inc. was incorporated in 2006 and is headquartered in Tampa, Florida.

About Puma Biotechnology

Puma Biotechnology, Inc., a biopharmaceutical company, focuses on the development and commercialization of products to enhance cancer care in the United States and internationally. The company offers NERLYNX, an oral version of neratinib that is used to treat adult patients with early stage HER2-overexpressed/amplified breast cancer; and advanced or metastatic HER2-positive breast cancer when combined with capecitabine. It also develops alisertib, a small molecule inhibitor of aurora kinase A for the treatment of hormone receptor positive breast cancer, triple negative breast cancer, small cell lung cancer, and head and neck cancer. The company sells its products through specialty pharmacy and distributor networks. It has license agreements with Pfizer Inc. for the development, manufacture, and commercialization of neratinib (oral), neratinib (intravenous), PB357, and related compounds; and Takeda Pharmaceutical Company Limited for the research, development, and commercialization of alisertib, as well as sub-license agreements with Specialised Therapeutics Asia Pte Ltd., Medison Pharma Ltd., Pint Pharma International SA, Knight Therapeutics, Inc., Pierre Fabre Medicament SAS, and Bixink Therapeutics Co., Ltd. The company was founded in 2010 and is headquartered in Los Angeles, California.