Comparing CorMedix (NASDAQ:CRMD) and Lexicon Pharmaceuticals (NASDAQ:LXRX)

Lexicon Pharmaceuticals (NASDAQ:LXRX) and CorMedix (NASDAQ:CRMD) are both small-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations for Lexicon Pharmaceuticals and CorMedix, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lexicon Pharmaceuticals	0	3	2	0	2.40
CorMedix	0	0	7	1	3.13

Lexicon Pharmaceuticals presently has a consensus price target of $3.67, suggesting a potential upside of 925.64%. CorMedix has a consensus price target of $16.00, suggesting a potential upside of 45.85%. Given Lexicon Pharmaceuticals’ higher possible upside, research analysts plainly believe Lexicon Pharmaceuticals is more favorable than CorMedix.

Risk and Volatility

Lexicon Pharmaceuticals has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500. Comparatively, CorMedix has a beta of 1.53, indicating that its share price is 53% more volatile than the S&P 500.

Profitability

This table compares Lexicon Pharmaceuticals and CorMedix’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lexicon Pharmaceuticals	-4,109.41%	-107.38%	-64.09%
CorMedix	N/A	-79.21%	-64.68%

Insider and Institutional Ownership

74.7% of Lexicon Pharmaceuticals shares are held by institutional investors. Comparatively, 34.2% of CorMedix shares are held by institutional investors. 6.8% of Lexicon Pharmaceuticals shares are held by insiders. Comparatively, 5.2% of CorMedix shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Lexicon Pharmaceuticals and CorMedix”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lexicon Pharmaceuticals	$31.08 million	2.83	-$177.12 million	($0.64)	-0.56
CorMedix	$12.26 million	54.28	-$46.34 million	($0.81)	-13.54

CorMedix has lower revenue, but higher earnings than Lexicon Pharmaceuticals. CorMedix is trading at a lower price-to-earnings ratio than Lexicon Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Summary

CorMedix beats Lexicon Pharmaceuticals on 8 of the 15 factors compared between the two stocks.

About Lexicon Pharmaceuticals

Lexicon Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the discovery, development, and commercialization of pharmaceutical products. Its orally-delivered small molecule drug candidates under development comprise Sotagliflozin that completed Phase III clinical trials for the for the treatment of heart failure and type 1 diabetes; and LX9211, which is in Phase II clinical development for the treatment of neuropathic pain and LX2761, which is in Phase I clinical development for gastrointestinal tract. Lexicon Pharmaceuticals, Inc. has strategic collaboration and license agreements with Bristol-Myers Squibb Company and Genentech, Inc. The company was incorporated in 1995 and is headquartered in The Woodlands, Texas.

About CorMedix

CorMedix Inc., a biopharmaceutical company, focuses on developing and commercializing therapeutic products for the prevention and treatment of infectious and inflammatory diseases in the United States. Its lead product candidate is DefenCath, an antimicrobial catheter lock solution to reduce the incidence of catheter-related bloodstream infections in adult patients with kidney failure. The company was formerly known as Picton Holding Company, Inc. and changed its name to CorMedix, Inc. in January 2007. CorMedix Inc. was incorporated in 2006 and is based in Berkeley Heights, New Jersey.