Mersana Therapeutics (NASDAQ:MRSN) & Opus Genetics (NASDAQ:IRD) Critical Review

Opus Genetics (NASDAQ:IRDGet Free Report) and Mersana Therapeutics (NASDAQ:MRSNGet Free Report) are both small-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, valuation, analyst recommendations and dividends.

Volatility & Risk

Opus Genetics has a beta of 0.28, indicating that its share price is 72% less volatile than the S&P 500. Comparatively, Mersana Therapeutics has a beta of 1.67, indicating that its share price is 67% more volatile than the S&P 500.

Earnings and Valuation

This table compares Opus Genetics and Mersana Therapeutics”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Opus Genetics $8.38 million 4.33 -$9.99 million ($1.09) -1.06
Mersana Therapeutics $40.50 million 1.37 -$171.67 million ($0.56) -0.79

Opus Genetics has higher earnings, but lower revenue than Mersana Therapeutics. Opus Genetics is trading at a lower price-to-earnings ratio than Mersana Therapeutics, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

15.0% of Opus Genetics shares are owned by institutional investors. Comparatively, 93.9% of Mersana Therapeutics shares are owned by institutional investors. 6.6% of Opus Genetics shares are owned by company insiders. Comparatively, 11.8% of Mersana Therapeutics 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.

Profitability

This table compares Opus Genetics and Mersana Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Opus Genetics -324.45% -63.65% -56.94%
Mersana Therapeutics -214.20% -401.37% -38.61%

Analyst Recommendations

This is a breakdown of recent ratings for Opus Genetics and Mersana Therapeutics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Opus Genetics 0 0 1 0 3.00
Mersana Therapeutics 0 1 3 1 3.00

Opus Genetics currently has a consensus target price of $8.00, indicating a potential upside of 595.65%. Mersana Therapeutics has a consensus target price of $4.00, indicating a potential upside of 799.28%. Given Mersana Therapeutics’ higher probable upside, analysts clearly believe Mersana Therapeutics is more favorable than Opus Genetics.

Summary

Mersana Therapeutics beats Opus Genetics on 11 of the 14 factors compared between the two stocks.

About Opus Genetics

(Get Free Report)

Opus Genetics Inc. is a clinical-stage ophthalmic biopharmaceutical company, focuses on developing and commercializing therapies for the treatment of unmet needs of patients with refractive and retinal eye disorders. Opus Genetics Inc., formerly known as Ocuphire Pharma Inc., is based in Farmington Hills, Michigan.

About Mersana Therapeutics

(Get Free Report)

Mersana Therapeutics, Inc., a clinical stage biopharmaceutical company, develops antibody drug conjugates (ADC) for cancer patients with unmet needs. The company develops XMT-1660, a B7-H4-targeted Dolasynthen ADC candidate; and XMT-2056, an immunosynthen ADC. It has research and development collaborations with Janssen Biotech, Inc., Ares Trading S.A., Merck KGaA, and Asana BioSciences, LLC for the development of ADC product candidates. The company was formerly known as Nanopharma Corp. and changed its name to Mersana Therapeutics, Inc. in November 2005. Mersana Therapeutics, Inc. was incorporated in 2001 and is headquartered in Cambridge, Massachusetts.

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