Nektar Therapeutics (NKTR) & OncoSec Medical (ONCS) Critical Review

Nektar Therapeutics (NASDAQ: NKTR) and OncoSec Medical (NASDAQ:ONCS) are both healthcare companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Earnings & Valuation

This table compares Nektar Therapeutics and OncoSec Medical’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nektar Therapeutics $165.44 million 54.87 -$153.52 million ($0.71) -81.20
OncoSec Medical N/A N/A -$21.44 million ($1.06) -1.76

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

Risk and Volatility

Nektar Therapeutics has a beta of 1.81, suggesting that its share price is 81% more volatile than the S&P 500. Comparatively, OncoSec Medical has a beta of 3.25, suggesting that its share price is 225% more volatile than the S&P 500.

Profitability

This table compares Nektar Therapeutics and OncoSec Medical’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nektar Therapeutics -42.08% -190.68% -19.50%
OncoSec Medical N/A -144.61% -110.75%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Nektar Therapeutics and OncoSec Medical, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nektar Therapeutics 0 1 12 0 2.92
OncoSec Medical 0 0 4 0 3.00

Nektar Therapeutics currently has a consensus price target of $36.64, indicating a potential downside of 36.45%. OncoSec Medical has a consensus price target of $5.33, indicating a potential upside of 185.20%. Given OncoSec Medical’s stronger consensus rating and higher probable upside, analysts clearly believe OncoSec Medical is more favorable than Nektar Therapeutics.

Insider and Institutional Ownership

96.0% of Nektar Therapeutics shares are held by institutional investors. Comparatively, 5.2% of OncoSec Medical shares are held by institutional investors. 5.4% of Nektar Therapeutics shares are held by company insiders. Comparatively, 5.5% of OncoSec Medical shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

OncoSec Medical beats Nektar Therapeutics on 8 of the 13 factors compared between the two stocks.

About Nektar Therapeutics

Nektar Therapeutics is a biopharmaceutical company that discovers and develops medicines in areas of high unmet medical need. The Company’s research and development pipeline of new investigational drugs includes treatments for cancer, auto-immune disease and chronic pain. It leverages its chemistry platform to discover and design new drug candidates. These drug candidates utilize its polymer conjugate technology platforms, which are designed to enable the development of new molecular entities that target known mechanisms of action. Its programs include Immuno-oncology (I-O), Immunology, Pain-NKTR-181 and Oncology-ONZEALD. It is developing medicines designed to directly or indirectly modulate the activity of key immune cells, such as cytotoxic T cells and Natural Killer (NK) cells, to increase their numbers and improve their function to recognize and attack cancer cells.

About OncoSec Medical

OncoSec Medical Incorporated is a biotechnology company. The Company is focused on designing, developing and commercializing gene therapies, therapeutics and medical approaches to stimulate an anti-tumor immune response for the treatment of cancer. The Company’s lead product candidate, ImmunoPulse IL-12, consists of a plasmid construct encoding the proinflammatory cytokine, IL-12, which is delivered into the tumor through in vivo electroporation. As of July 31, 2016, the Company was pursuing two Phase II trials: ImmunoPulse IL-12 monotherapy in patients with metastatic melanoma and ImmunoPulse IL-12 plus pembrolizumab in patients with advanced, metastatic melanoma. In addition, it is pursuing ImmunoPulse IL-12 monotherapy in patients with triple negative breast cancer. Its ImmunoPulse product candidates are based on its deoxyribonucleic acid (DNA)-based immunotherapy technology, which is designed to stimulate the human immune system, resulting in systemic anti-tumor immune responses.

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