Analyzing PTC Therapeutics (PTCT) and Spring Bank Pharmaceuticals (SBPH)

PTC Therapeutics (NASDAQ: PTCT) and Spring Bank Pharmaceuticals (NASDAQ:SBPH) 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, dividends, profitability, analyst recommendations, institutional ownership and risk.

Profitability

This table compares PTC Therapeutics and Spring Bank Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PTC Therapeutics -75.64% -75.19% -31.76%
Spring Bank Pharmaceuticals N/A -74.73% -47.49%

Insider & Institutional Ownership

86.2% of PTC Therapeutics shares are owned by institutional investors. Comparatively, 29.7% of Spring Bank Pharmaceuticals shares are owned by institutional investors. 8.1% of PTC Therapeutics shares are owned by insiders. Comparatively, 17.6% of Spring Bank Pharmaceuticals shares are owned by 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.

Analyst Ratings

This is a breakdown of current ratings for PTC Therapeutics and Spring Bank Pharmaceuticals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PTC Therapeutics 1 6 2 0 2.11
Spring Bank Pharmaceuticals 0 1 4 0 2.80

PTC Therapeutics presently has a consensus price target of $18.14, suggesting a potential upside of 13.61%. Spring Bank Pharmaceuticals has a consensus price target of $27.25, suggesting a potential upside of 102.90%. Given Spring Bank Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts clearly believe Spring Bank Pharmaceuticals is more favorable than PTC Therapeutics.

Valuation and Earnings

This table compares PTC Therapeutics and Spring Bank Pharmaceuticals’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PTC Therapeutics $82.71 million 8.01 -$142.11 million ($2.89) -5.53
Spring Bank Pharmaceuticals $350,000.00 496.91 -$17.36 million ($2.76) -4.87

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

Summary

Spring Bank Pharmaceuticals beats PTC Therapeutics on 9 of the 12 factors compared between the two stocks.

PTC Therapeutics Company Profile

PTC Therapeutics, Inc. is a biopharmaceutical company. The Company is focused on the discovery, development and commercialization of medicines using its expertise in ribonucleic acid (RNA) biology. Its product pipeline includes Ataluren (Translarna), PTC596 and RG7916. Its product candidate, ataluren, is an orally administered small-molecule compound for the treatment of patients with genetic disorders due to a nonsense mutation. Ataluren is in clinical development for the treatment of Duchenne muscular dystrophy caused by a nonsense mutation (nmDMD) and cystic fibrosis caused by a nonsense mutation (nmCF). PTC596 is an orally active small molecule that targets tumor stem cell populations by reducing the function, activity and amount of BMI1. RG7916 is an investigational oral therapeutic, which is in two clinical studies: SUNFISH, a trial in childhood onset (Type II/III) spinal muscular atrophy (SMA) patients, and FIREFISH, a trial in infant onset (Type I) SMA patients.

Spring Bank Pharmaceuticals Company Profile

Spring Bank Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company. The Company is engaged in the discovery and development of a class of therapeutics using its small molecule nucleic acid hybrid (SMNH) chemistry platform. The Company is developing its SMNH product, SB 9200, for the treatment of viral diseases. The Company’s SB 9200 selectively activates within infected cells the cellular proteins retinoic acid-inducible gene 1 (RIG-I) and nucleotide-binding oligomerization domain-containing protein 2 (NOD2) to inhibit viral replication and to cause the induction of intracellular interferon signaling pathways for antiviral defense. The Company is also developing a second SMNH product candidate, SB 11285, as an immunotherapeutic agent for the treatment of selected cancers through the activation of the STimulator of INterferon Genes (STING) pathway. The Company focuses on developing SB 9200 for the treatment of chronic hepatitis B virus (HBV).

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