Bausch Health Cos (NYSE:BHC) & Ocular Therapeutix (NASDAQ:OCUL) Critical Comparison

Ocular Therapeutix (NASDAQ:OCUL) and Bausch Health Cos (NYSE:BHC) are both healthcare companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, profitability, earnings, analyst recommendations and risk.

Analyst Ratings

This is a breakdown of current recommendations for Ocular Therapeutix and Bausch Health Cos, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ocular Therapeutix	1	1	9	0	2.73
Bausch Health Cos	1	5	0	1	2.14

Ocular Therapeutix presently has a consensus target price of $24.33, indicating a potential upside of 224.01%. Bausch Health Cos has a consensus target price of $8.00, indicating a potential upside of 32.34%. Given Ocular Therapeutix’s stronger consensus rating and higher probable upside, analysts plainly believe Ocular Therapeutix is more favorable than Bausch Health Cos.

Profitability

This table compares Ocular Therapeutix and Bausch Health Cos’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ocular Therapeutix	-579.10%	-59.89%	-45.99%
Bausch Health Cos	-10.12%	-561.95%	6.31%

Volatility and Risk

Ocular Therapeutix has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.Comparatively, Bausch Health Cos has a beta of 0.37, indicating that its stock price is 63% less volatile than the S&P 500.

Earnings & Valuation

This table compares Ocular Therapeutix and Bausch Health Cos”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ocular Therapeutix	$52.05 million	31.68	-$265.94 million	($1.42)	-5.29
Bausch Health Cos	$10.85 billion	0.21	$157.00 million	($2.96)	-2.04

Bausch Health Cos has higher revenue and earnings than Ocular Therapeutix. Ocular Therapeutix is trading at a lower price-to-earnings ratio than Bausch Health Cos, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

59.2% of Ocular Therapeutix shares are owned by institutional investors. Comparatively, 78.7% of Bausch Health Cos shares are owned by institutional investors. 3.1% of Ocular Therapeutix shares are owned by insiders. Comparatively, 20.7% of Bausch Health Cos shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Bausch Health Cos beats Ocular Therapeutix on 8 of the 15 factors compared between the two stocks.

About Ocular Therapeutix

Ocular Therapeutix, Inc., a biopharmaceutical company, focuses on the formulation, development, and commercialization of therapies for diseases and conditions of the eye using its bioresorbable hydrogel-based formulation technology in the United States. The company markets DEXTENZA, a dexamethasone ophthalmic insert to treat post-surgical ocular inflammation and pain following ophthalmic surgery, as well as allergic conjunctivitis. It is developing AXPAXLI, an axitinib intravitreal implant that is in phase 3 trials for the treatment of wet age-related macular degeneration and other retinal diseases; PAXTRAVA, a travoprost intracameral implant, which is in phase 2 clinical trials for the treatment of open-angle glaucoma or ocular hypertension; OTX-CSI, a cyclosporine intracanalicular insert that has completed phase 2 clinical trials for the treatment of dry eye disease; and OTX-DED, a dexamethasone intracanalicular insert, which is in phase 2 clinical trials for the short-term treatment of the signs and symptoms of dry eye disease. In addition, the company offers modulator for intermediate and late dry age-related macular degeneration; and gene delivery for inherited retinal degenerations and protein biofactory indications. The company has a strategic collaboration with Regeneron Pharmaceuticals, Inc. (Regeneron) for the development and commercialization of products using the company’s sustained-release hydrogel in combination with Regeneron’s large molecule VEGF-targeting compounds for the treatment of retinal diseases; and AffaMed Therapeutics Limited for the development and commercialization of DEXTENZA and OTX-TIC. Ocular Therapeutix, Inc. was incorporated in 2006 and is headquartered in Bedford, Massachusetts.

About Bausch Health Cos

Bausch Health Companies Inc. operates as a diversified specialty pharmaceutical and medical device company in the United States and internationally. It develops, manufactures, and markets a range of products primarily in gastroenterology, hepatology, neurology, dermatology, international pharmaceuticals, over-the-counter (OTC) products, aesthetic medical devices, and eye health. The company operates through five segments: Salix, International, Solta Medical, Diversified, and Bausch + Lomb. The Salix segment provides gastroenterology products in the United States. The International segment sells aesthetic medical devices, branded pharmaceuticals, generic pharmaceuticals, and OTC products internationally. The Solta Medical segment engages in the sale of aesthetic medical devices. The Diversified segment offers pharmaceutical products in the areas of neurology and certain other therapeutic classes; generic products; ortho dermatologic; and dentistry products in the United States. The Bausch + Lomb segment offers products in the areas of vision care, surgical, and ophthalmic pharmaceuticals products. The company was formerly known as Valeant Pharmaceuticals International, Inc. and changed its name to Bausch Health Companies Inc. in July 2018. Bausch Health Companies Inc. is headquartered in Laval, Canada.