Prana Biotechnology (NASDAQ: PRAN) and Foundation Medicine (NASDAQ:FMI) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, institutional ownership and profitability.
Insider and Institutional Ownership
1.8% of Prana Biotechnology shares are held by institutional investors. Comparatively, 31.8% of Foundation Medicine shares are held by institutional investors. 38.8% of Prana Biotechnology shares are held by company insiders. Comparatively, 2.7% of Foundation Medicine shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Prana Biotechnology and Foundation Medicine’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Prana Biotechnology||$2.50 million||1.63||-$5.44 million||N/A||N/A|
|Foundation Medicine||$119.58 million||11.99||-$140.79 million||($4.47)||-8.90|
Prana Biotechnology has higher revenue, but lower earnings than Foundation Medicine.
Volatility and Risk
Prana Biotechnology has a beta of -0.13, indicating that its stock price is 113% less volatile than the S&P 500. Comparatively, Foundation Medicine has a beta of -0.12, indicating that its stock price is 112% less volatile than the S&P 500.
This table compares Prana Biotechnology and Foundation Medicine’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current ratings and recommmendations for Prana Biotechnology and Foundation Medicine, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Foundation Medicine has a consensus price target of $35.00, suggesting a potential downside of 12.06%. Given Foundation Medicine’s higher probable upside, analysts plainly believe Foundation Medicine is more favorable than Prana Biotechnology.
Foundation Medicine beats Prana Biotechnology on 6 of the 11 factors compared between the two stocks.
Prana Biotechnology Company Profile
Prana Biotechnology Limited is a development-stage medical biotechnology company. The Company is engaged in the research and development of therapeutic drugs designed to treat the underlying cause of degeneration of the brain focusing on Alzheimer’s disease, Huntington disease, Parkinson’s disease and other neurological disorders. The Company’s lead product candidates are PBT2 and PBT434. The Company’s lead drug candidate PBT2 is being developed for the treatment of Alzheimer’s and Huntington’s diseases. The Company also has advanced a drug candidate for Parkinson’s disease and other movement disorders (PBT434) and brain cancer (PBT519), which are in pre-clinical toxicology testing. Its other applications for its therapies include certain cancers, age-related macular degeneration, Motor Neuron disease, Creutzfeldt-Jakob disease (the human variant of Mad Cow disease), and a range of orphan neurodegenerative disorders.
Foundation Medicine Company Profile
Foundation Medicine, Inc. is a molecular information company. The Company sells products that are enabled by its molecular information platform to physicians and biopharmaceutical companies. It is engaged in the business of delivering molecular information about cancer to its customers. Its platform includes various methods and algorithms for analyzing specimens across various types of cancer. Its suite of clinical molecular information products includes FoundationOne, which is used for solid tumors; FoundationOne Heme, which is used for blood-based cancers or hematologic malignancies, including leukemia, lymphoma, myeloma, pediatric cancers and advanced sarcoma; FoundationACT (Assay for Circulating Tumor DNA), which is a blood-based (liquid biopsy) assay that evaluates circulating tumor deoxyribonucleic acid (ctDNA), and FoundationFocus CDxBRCA, which is a companion diagnostic assay to aid in identifying women with ovarian cancer for whom treatment with Rubraca (rucaparib).
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