Analyzing TRACON Pharmaceuticals (NASDAQ:TCON) and Ocugen (NASDAQ:OCGN)

Ocugen (NASDAQ:OCGN) and TRACON Pharmaceuticals (NASDAQ:TCON) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.

Analyst Ratings

This is a breakdown of current recommendations for Ocugen and TRACON Pharmaceuticals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ocugen	0	0	3	0	3.00
TRACON Pharmaceuticals	0	1	2	0	2.67

Ocugen presently has a consensus target price of $4.67, indicating a potential upside of 201.08%. TRACON Pharmaceuticals has a consensus target price of $60.00, indicating a potential upside of 3,650.00%. Given TRACON Pharmaceuticals’ higher probable upside, analysts clearly believe TRACON Pharmaceuticals is more favorable than Ocugen.

Insider & Institutional Ownership

10.3% of Ocugen shares are held by institutional investors. Comparatively, 11.6% of TRACON Pharmaceuticals shares are held by institutional investors. 4.3% of Ocugen shares are held by insiders. Comparatively, 5.3% of TRACON Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Ocugen and TRACON Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ocugen	N/A	-117.30%	-83.58%
TRACON Pharmaceuticals	N/A	-114.48%	59.65%

Valuation and Earnings

This table compares Ocugen and TRACON Pharmaceuticals’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ocugen	$6.04 million	66.04	-$63.08 million	($0.25)	-6.20
TRACON Pharmaceuticals	$12.15 million	0.35	-$3.59 million	$0.67	2.39

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

Risk & Volatility

Ocugen has a beta of 3.57, suggesting that its stock price is 257% more volatile than the S&P 500. Comparatively, TRACON Pharmaceuticals has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500.

Summary

TRACON Pharmaceuticals beats Ocugen on 9 of the 13 factors compared between the two stocks.

About Ocugen

Ocugen, Inc., a clinical-stage biopharmaceutical company, focuses on discovering, developing, and commercializing novel gene and cell therapies and vaccines that improve patients' health. The company's pipeline product includes OCU400, a novel gene therapy product candidate restoring retinal integrity and function across a range of genetically diverse inherited retinal diseases, currently under Phase 3 trials for the treatment of retinitis pigmentosa and Phase 1/2 trials for the treatment of leber congenital amaurosis; OCU410, a gene therapy under phase 1/2 for the treatment of dry age-related macular degeneration (AMD); and OCU410ST, a gene therapy under phase 1/2 for the treatment of Stargardt disease. It is also involved in the development of OCU200, a novel fusion protein that is in preclinical development stage for the treatment of diabetic macular edema, diabetic retinopathy, and wet age-related macular degeneration; and NeoCart, an autologous chondrocyte-derived neocartilage, currently under Phase 3 studies indicated for the repair of knee cartilage injuries in adult. In addition, the company is developing OCU500, a COVID-19 vaccine; OCU510, a seasonal quadrivalent flu vaccine; and OCU520, a combination quadrivalent seasonal flu and COVID-19 vaccine. It has collaboration agreements with National Institute of Allergy and Infectious Diseases for early clinical studies for the OCU500 program; and a strategic partnership with CanSino Biologics Inc. for manufacturing its modifier gene therapy pipeline product candidates. The company was founded in 2013 and is headquartered in Malvern, Pennsylvania.

About TRACON Pharmaceuticals

TRACON Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the development and commercialization of novel targeted therapeutics for cancer in the United States. Its clinical stage products include envafolimab (KN035), a PD-L1 single-domain antibody for the treatment of refractory soft tissue sarcoma; and YH001, an investigational humanized cytotoxic T-lymphocyte-associated protein 4 IgG1 monoclonal antibody that is in Phase I clinical trial for the treatment of various cancer indications. The company's clinical stage products also include TRC102, a small molecule that is in Phase II clinical trial for the treatment of mesothelioma, and in Phase I clinical trial to treat solid tumors, lung cancer, and glioblastoma; and TJ004309, a CD73 antibody that is in Phase I clinical development for the treatment of solid tumors. In addition, it is developing bispecific antibodies, which are in preclinical stage. It has collaboration and license agreements with 3D Medicines Co., Ltd. and Jiangsu Alphamab Biopharmaceuticals Co., Ltd. for the development of envafolimab; I-Mab Biopharma for the development of CD73 antibody TJ004309 and bispecific antibodies; and cooperative research and development agreement with National Cancer Institute. The company was formerly known as Lexington Pharmaceuticals, Inc. and changed its name to TRACON Pharmaceuticals, Inc. in March 2005. TRACON Pharmaceuticals, Inc. was incorporated in 2004 and is headquartered in San Diego, California.