Bio-Path (NASDAQ:BPTH – Get Rating) and Otonomy (NASDAQ:OTIC – Get Rating) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, analyst recommendations and dividends.
Insider and Institutional Ownership
6.4% of Bio-Path shares are owned by institutional investors. Comparatively, 41.2% of Otonomy shares are owned by institutional investors. 3.5% of Bio-Path shares are owned by company insiders. Comparatively, 9.1% of Otonomy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Get Bio-Path alerts:Profitability
This table compares Bio-Path and Otonomy's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Bio-Path | N/A | -67.16% | -62.17% |
| Otonomy | N/A | -137.86% | -68.50% |
Analyst Recommendations
This is a summary of current ratings for Bio-Path and Otonomy, as reported by MarketBeat.com.| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bio-Path | 0 | 0 | 1 | 0 | 3.00 |
| Otonomy | 0 | 2 | 1 | 0 | 2.33 |
Bio-Path currently has a consensus target price of $9.00, suggesting a potential upside of 374.38%. Otonomy has a consensus target price of $3.25, suggesting a potential upside of 3,158.15%. Given Otonomy's higher probable upside, analysts clearly believe Otonomy is more favorable than Bio-Path.
Valuation & Earnings
This table compares Bio-Path and Otonomy's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bio-Path | N/A | N/A | -$10.44 million | ($1.97) | -0.96 |
| Otonomy | $130,000.00 | 49.98 | -$51.18 million | ($0.77) | -0.13 |
Bio-Path has higher earnings, but lower revenue than Otonomy. Bio-Path is trading at a lower price-to-earnings ratio than Otonomy, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Bio-Path has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500. Comparatively, Otonomy has a beta of 1.47, meaning that its share price is 47% more volatile than the S&P 500.
Summary
Otonomy beats Bio-Path on 7 of the 11 factors compared between the two stocks.
About Bio-Path
(Get Rating)
Bio-Path Holdings, Inc. operates as a clinical and preclinical stage oncology focused RNAi nano particle drug development company in the United States. The company develops products based on DNAbilize, a drug delivery and antisense technology that uses P-ethoxy, which is a deoxyribonucleic acid (DNA) backbone modification intended to protect the DNA from destruction. Its lead drug candidate is prexigebersen, which is in Phase II clinical trials for the treatment of acute myeloid leukemia (AML) and myelodysplastic syndrome. It is also developing Liposomal Bcl-2 for the treatment of refractory/relapsed lymphoma and chronic lymphocytic leukemia; Liposomal STAT3 that is in preclinical stage for the treatment of pancreatic cancer, non-small cell lung cancer, and AML; and prexigebersen-A for various solid tumors. Bio-Path Holdings, Inc. was founded in 2007 and is based in Bellaire, Texas.
About Otonomy
(Get Rating)
Otonomy, Inc. operates as a biopharmaceutical company. engages in the development of therapeutics for neurotology. The firm's product pipeline includes OTIVIDEX (dexamethasone) Meniere's disease, OTIPRIO (ciprofloxacin otic suspension) acute otitis media with tubes (AOMT), OTO-313 (gacyclidine) tinnitus, OTO-413 (BDNF) hidden hearing Loss, OTO-510 (otoprotectant) prevent CIHL, OTO-6XX (hair cell regeneration) severe hearing loss. It operates under the Otiprio brand. The company was founded by Jay B. Lichter, Jeffrey Harris, Rick Friedman, and Allen F. Ryan on May 6, 2008 and is headquartered in San Diego, CA.
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