Foamix Pharmaceuticals (NASDAQ:FOMX) versus CV Sciences (NASDAQ:CVSI) Critical Analysis

Foamix Pharmaceuticals (NASDAQ:FOMX) and CV Sciences (OTCMKTS:CVSI) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, risk, profitability and institutional ownership.

Institutional and Insider Ownership

55.1% of Foamix Pharmaceuticals shares are held by institutional investors. Comparatively, 0.1% of CV Sciences shares are held by institutional investors. 3.0% of Foamix Pharmaceuticals shares are held by company insiders. Comparatively, 10.1% of CV Sciences shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Foamix Pharmaceuticals has a beta of 1.62, meaning that its stock price is 62% more volatile than the S&P 500. Comparatively, CV Sciences has a beta of -0.49, meaning that its stock price is 149% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Foamix Pharmaceuticals and CV Sciences, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Foamix Pharmaceuticals 0 0 5 0 3.00
CV Sciences 0 0 2 0 3.00

Foamix Pharmaceuticals currently has a consensus target price of $15.60, suggesting a potential upside of 539.34%. CV Sciences has a consensus target price of $8.50, suggesting a potential upside of 109.88%. Given Foamix Pharmaceuticals’ higher possible upside, equities research analysts plainly believe Foamix Pharmaceuticals is more favorable than CV Sciences.

Earnings and Valuation

This table compares Foamix Pharmaceuticals and CV Sciences’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Foamix Pharmaceuticals $3.60 million 36.89 -$74.16 million ($1.70) -1.44
CV Sciences $48.24 million 8.41 $10.00 million $0.09 45.00

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

Profitability

This table compares Foamix Pharmaceuticals and CV Sciences’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Foamix Pharmaceuticals -2,115.11% -79.46% -68.80%
CV Sciences N/A -0.01% -0.01%

Summary

CV Sciences beats Foamix Pharmaceuticals on 8 of the 13 factors compared between the two stocks.

About Foamix Pharmaceuticals

Foamix Pharmaceuticals Ltd., a late clinical-stage specialty pharmaceutical company, develops and commercializes foam-based formulations for dermatological therapy in the United States, France, Denmark, and Germany. Its lead product candidates include FMX101, a novel topical foam formulation of the antibiotic minocycline that has completed third pivotal Phase III clinical trial for the treatment of moderate-to-severe acne; and FMX103, which is in Phase III clinical trial for the treatment of moderate-to-severe papulopustular rosacea. The company's product pipeline includes FCD105 and FMX109 for the treatment of moderate-to-severe acne vulgaris; and FMX110 for the treatment of papulopustular rosacea. Foamix Pharmaceuticals Ltd. has development and license agreements with Bayer HealthCare AG; LEO Pharma A/S; Mylan N.V.; and Actavis plc. The company was founded in 2003 and is headquartered in Rehovot, Israel.

About CV Sciences

CV Sciences, Inc. operates as a life science company. It operates through two segments, Consumer Products and Specialty Pharmaceuticals. The Consumer Products segment manufactures, markets, and sells consumer products containing hemp-based cannabidiol oil under the PlusCBD brand in various market sectors, including nutraceutical, beauty care, specialty foods, and vape. This segment provides its hemp extract products in balms, sprays, drops, capsules, gummies, and softgel forms. It also sells raw materials to various customers that produce products for resale into the market in Europe. The Specialty Pharmaceuticals segment develops cannabinoids to treat a range of medical indications. Its product candidate is CVSI-007 that combines CBD and nicotine for the treatment of smokeless tobacco use and addiction. The company was formerly known as CannaVest Corp. and changed its name to CV Sciences, Inc. in January 2016. CV Sciences, Inc. was founded in 2010 and is based in Las Vegas, Nevada.

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