Analyzing Sucampo Pharmaceuticals (SCMP) and Kura Oncology (KURA)

Sucampo Pharmaceuticals (NASDAQ: SCMP) and Kura Oncology (NASDAQ:KURA) are both small-cap healthcare companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, dividends, valuation, earnings, profitability, risk and institutional ownership.

Risk and Volatility

Sucampo Pharmaceuticals has a beta of 1.38, indicating that its share price is 38% more volatile than the S&P 500. Comparatively, Kura Oncology has a beta of 4.94, indicating that its share price is 394% more volatile than the S&P 500.

Institutional & Insider Ownership

67.1% of Sucampo Pharmaceuticals shares are owned by institutional investors. Comparatively, 62.8% of Kura Oncology shares are owned by institutional investors. 4.1% of Sucampo Pharmaceuticals shares are owned by insiders. Comparatively, 21.8% of Kura Oncology shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Sucampo Pharmaceuticals and Kura Oncology’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sucampo Pharmaceuticals $230.06 million 3.69 $18.48 million ($3.35) -5.37
Kura Oncology N/A N/A -$27.56 million ($1.55) -14.29

Sucampo Pharmaceuticals has higher revenue and earnings than Kura Oncology. Kura Oncology is trading at a lower price-to-earnings ratio than Sucampo Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations for Sucampo Pharmaceuticals and Kura Oncology, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sucampo Pharmaceuticals 0 6 3 0 2.33
Kura Oncology 0 0 6 0 3.00

Sucampo Pharmaceuticals presently has a consensus target price of $21.22, suggesting a potential upside of 17.90%. Kura Oncology has a consensus target price of $22.60, suggesting a potential upside of 2.03%. Given Sucampo Pharmaceuticals’ higher probable upside, equities research analysts plainly believe Sucampo Pharmaceuticals is more favorable than Kura Oncology.

Profitability

This table compares Sucampo Pharmaceuticals and Kura Oncology’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sucampo Pharmaceuticals -60.24% 74.58% 16.85%
Kura Oncology N/A -53.40% -44.08%

Summary

Sucampo Pharmaceuticals beats Kura Oncology on 7 of the 13 factors compared between the two stocks.

About Sucampo Pharmaceuticals

Sucampo Pharmaceuticals, Inc. is a biopharmaceutical company. The Company is focused on the development and commercialization of pharmaceutical products. Its primary focus areas are gastroenterology, ophthalmology and oncology-related disorders. Its product candidates include VTS-270, Lubiprostone (AMITIZA), Unoprostone is opropyl (RESCULA) and CPP-1X/sulindac combination product. VTS-270 is an investigational drug under clinical study for the treatment of Niemann-Pick Disease Type C-1, an ultra-orphan, progressive and fatal disease. AMITIZA is a ClC-2 chloride channel activator, which has been approved for three indications that cover distinct patient types: chronic idiopathic constipation, irritable bowel syndrome with constipation, and opioid-induced constipation. RESCULA is a Big Potassium channel activator used to lower intraocular pressure. CPP-1X/sulindac combination product is meant for the treatment of familial adenomatous polyposis (FAP).

About Kura Oncology

Kura Oncology, Inc. is a clinical-stage biopharmaceutical company. The Company is engaged in discovering and developing personalized therapeutics for the treatment of solid tumors and blood cancers. Its segment is engaged in the discovery and development of personalized therapeutics for the treatment of solid tumors and blood cancers. It focuses on the development of small molecule product candidates that targets cell-signaling pathways, which drives the progression of certain cancers. It is developing its lead product candidate, tipifarnib, which is a farnesyl transferase inhibitor, in both solid tumors and blood cancers. It is advancing KO-947, a small molecule inhibitor of extracellular-signal-regulated kinase (ERK), as a treatment for patients with tumors that have mutations in or other dysregulation of the mitogen-activated protein kinase (MAPK), signaling pathway, including pancreatic cancer, colorectal cancer, non-small cell lung cancer (NSCLC) and melanoma.

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