Collegium Pharmaceutical (NASDAQ:COLL) versus Atea Pharmaceuticals (NASDAQ:AVIR) Critical Survey

Atea Pharmaceuticals (NASDAQ:AVIR) and Collegium Pharmaceutical (NASDAQ:COLL) are both small-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, analyst recommendations and earnings.

Risk and Volatility

Atea Pharmaceuticals has a beta of 0.19, suggesting that its share price is 81% less volatile than the S&P 500. Comparatively, Collegium Pharmaceutical has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500.

Institutional and Insider Ownership

86.7% of Atea Pharmaceuticals shares are owned by institutional investors. 17.8% of Atea Pharmaceuticals shares are owned by company insiders. Comparatively, 4.0% of Collegium Pharmaceutical shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Atea Pharmaceuticals and Collegium Pharmaceutical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Atea Pharmaceuticals	N/A	-34.90%	-32.38%
Collegium Pharmaceutical	14.78%	104.67%	18.38%

Earnings and Valuation

This table compares Atea Pharmaceuticals and Collegium Pharmaceutical”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atea Pharmaceuticals	N/A	N/A	-$135.96 million	($2.07)	-1.52
Collegium Pharmaceutical	$566.77 million	1.69	$48.15 million	$2.32	12.78

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for Atea Pharmaceuticals and Collegium Pharmaceutical, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atea Pharmaceuticals	0	1	0	1	3.00
Collegium Pharmaceutical	0	1	4	0	2.80

Atea Pharmaceuticals presently has a consensus price target of $6.88, indicating a potential upside of 118.41%. Collegium Pharmaceutical has a consensus price target of $43.60, indicating a potential upside of 47.00%. Given Atea Pharmaceuticals’ stronger consensus rating and higher possible upside, research analysts plainly believe Atea Pharmaceuticals is more favorable than Collegium Pharmaceutical.

Summary

Collegium Pharmaceutical beats Atea Pharmaceuticals on 9 of the 14 factors compared between the two stocks.

About Atea Pharmaceuticals

Atea Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, discovers, develops, and commercializes antiviral therapeutics for patients with viral infections. Its lead product candidate is AT-527, an oral antiviral candidate that is in Phase 3 SUNRISE-3 clinical trial for the treatment of patients with COVID-19. The company also develops bemnifosbuvir in combination with ruzasvir, which is in Phase 2 clinical trial, for the treatment of hepatitis C virus (HCV); and a protease inhibitor for the treatment of COVID-19. It has a license agreement with MSD International GmbH for the development, manufacture, and commercialization of Ruzasvir, an NS5A inhibitor, for the treatment of HCV. Atea Pharmaceuticals, Inc. was incorporated in 2012 and is headquartered in Boston, Massachusetts.

About Collegium Pharmaceutical

Collegium Pharmaceutical, Inc., a specialty pharmaceutical company, engages in the development and commercialization of medicines for pain management. Its portfolio includes Xtampza ER, an abuse-deterrent, extended-release, and oral formulation of oxycodone for the management of pain severe enough to require daily, around-the-clock, long-term opioid treatment; Nucynta ER and Nucynta IR, which are extended-release and immediate-release formulations of tapentadol, indicated for the management of acute, severe, and persistent pain; Belbuca, a buccal film that contains buprenorphine; and Symproic, an oral formulation of naldemedine for the treatment of opioid-induced constipation in adult patients with chronic non-cancer pain. The company was formerly known as Collegium Pharmaceuticals, Inc. and changed its name to Collegium Pharmaceutical, Inc. in October 2003. Collegium Pharmaceutical, Inc. was incorporated in 2002 and is headquartered in Stoughton, Massachusetts.