Critical Survey: Biostar Pharmaceuticals (OTCMKTS:BSPM) versus Corcept Therapeutics (NASDAQ:CORT)

Biostar Pharmaceuticals (OTCMKTS:BSPM) and Corcept Therapeutics (NASDAQ:CORT) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, institutional ownership and risk.

Volatility & Risk

Biostar Pharmaceuticals has a beta of -2.22, suggesting that its share price is 322% less volatile than the S&P 500. Comparatively, Corcept Therapeutics has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500.

Insider and Institutional Ownership

93.6% of Corcept Therapeutics shares are owned by institutional investors. 17.2% of Biostar Pharmaceuticals shares are owned by insiders. Comparatively, 20.5% of Corcept Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Biostar Pharmaceuticals and Corcept Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Biostar Pharmaceuticals	N/A	N/A	N/A
Corcept Therapeutics	22.35%	24.54%	20.24%

Valuation and Earnings

This table compares Biostar Pharmaceuticals and Corcept Therapeutics”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Biostar Pharmaceuticals	N/A	N/A	N/A	N/A	N/A
Corcept Therapeutics	$675.04 million	8.54	$106.14 million	$1.24	44.06

Corcept Therapeutics has higher revenue and earnings than Biostar Pharmaceuticals.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Biostar Pharmaceuticals and Corcept Therapeutics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Biostar Pharmaceuticals	0	0	0	0	0.00
Corcept Therapeutics	0	0	5	0	3.00

Corcept Therapeutics has a consensus price target of $99.75, indicating a potential upside of 82.59%. Given Corcept Therapeutics’ stronger consensus rating and higher probable upside, analysts plainly believe Corcept Therapeutics is more favorable than Biostar Pharmaceuticals.

Summary

Corcept Therapeutics beats Biostar Pharmaceuticals on 10 of the 10 factors compared between the two stocks.

About Biostar Pharmaceuticals

Biostar Pharmaceuticals, Inc. develops, manufactures, and markets over-the-counter (OTC) and prescription pharmaceutical products for various diseases and conditions in the People's Republic of China. The company principally offers Xin Ao Xing Oleanolic Acid capsule, an OTC medicine for chronic hepatitis B. It also provides 12 other OTC products and 17 prescription-based pharmaceuticals. The company's OTC products also comprise Ganwang compound paracetamol and amantadine hydrochloride capsule for the relief of common cold, runny nose, sore throat, headache, and fever; Tianqi Dysmenorrhea capsule, a traditional Chinese medicine used for pain and other symptoms associated with menstruation; Deafness Tongqiao pills for hepatobiliary Huosheng, head swelling, deafness and tinnitus, ear pus, dry stool, and urine-yellow; Wenweishu capsules for the treatment of chronic gastritis and pain of epigastric cold; Zhitongtougu ointment for treating joint pain, swelling, tenderness, or dysfunction; and Chuzhang Zehaifu tablets for cataract. Its prescription pharmaceutical products include Danshen granules; Taohuasan pediatric medicines; Jingang tablets; Danxiang Rhinitis tablets; Yanlixiao capsules; Piracetam tablets; Huangyangning tablets; Hyperthyroidism capsules; Fosfomycin Calcium capsules; Qianlietong capsules; Yituo Erythromycin particles; Danshen tablets; Muxiang Shunqi pills; Sifangwei capsules; and Aspirin Enteric-coated tablets. The company also operates a Website that serves as Internet-based China Hepatitis Internet hospital, which offers HBV patients with information on HBV and treatment options, as well as methods to purchase HBV medicines. Biostar Pharmaceuticals, Inc. sells its products through distributors and a network of sales people in approximately 28 provinces. The company was incorporated in 2007 and is headquartered in Xianyang, the People's Republic of China.

About Corcept Therapeutics

Corcept Therapeutics Incorporated engages in discovery and development of drugs for the treatment of severe endocrinologic, oncologic, metabolic, and neurologic disorders in the United States. It offers Korlym tablets medication for the treatment of hyperglycemia secondary to hypercortisolism in adult patients with endogenous cushing's syndrome; and who have type 2 diabetes mellitus or glucose intolerance and have failed surgery or are not candidates for surgery. The company is also developing relacorilant, which is in phase III clinical trial for the treatment of cushing's syndrome; treatment for adrenal cancer and cortisol excess which is in phase 1b clinical trial; treatment for prostate cancer which is in phase II clinical trial; and nab-paclitaxel in combination with relacorilant, which is in phase III clinical trial to treat platinum-resistant ovarian tumors. In addition, it develops dazucorilant, which is in phase II clinical trial for the treatment of amyotrophic lateral sclerosis; miricorilant, which is in phase IIb trial for the treatment of nonalcoholic steatohepatitis; and treatment for antipsychotic induced weight gain that is in phase I trial. The company was incorporated in 1998 and is headquartered in Menlo Park, California.