Contrasting PRA Health Sciences (PRAH) & Sunesis Pharmaceuticals (SNSS)

PRA Health Sciences (NASDAQ: PRAH) and Sunesis Pharmaceuticals (NASDAQ:SNSS) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, risk, analyst recommendations and institutional ownership.

Profitability

This table compares PRA Health Sciences and Sunesis Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PRA Health Sciences 5.64% 21.66% 7.02%
Sunesis Pharmaceuticals N/A N/A -125.56%

Valuation and Earnings

This table compares PRA Health Sciences and Sunesis Pharmaceuticals’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PRA Health Sciences $1.81 billion 3.16 $68.17 million $1.79 50.49
Sunesis Pharmaceuticals $2.54 million 57.44 -$38.02 million ($1.75) -2.43

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

Analyst Ratings

This is a summary of recent ratings and target prices for PRA Health Sciences and Sunesis Pharmaceuticals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PRA Health Sciences 0 1 11 0 2.92
Sunesis Pharmaceuticals 0 2 2 0 2.50

PRA Health Sciences currently has a consensus price target of $91.08, indicating a potential upside of 0.79%. Sunesis Pharmaceuticals has a consensus price target of $4.16, indicating a potential downside of 2.35%. Given PRA Health Sciences’ stronger consensus rating and higher possible upside, equities analysts plainly believe PRA Health Sciences is more favorable than Sunesis Pharmaceuticals.

Risk and Volatility

PRA Health Sciences has a beta of 0.41, meaning that its stock price is 59% less volatile than the S&P 500. Comparatively, Sunesis Pharmaceuticals has a beta of 1.53, meaning that its stock price is 53% more volatile than the S&P 500.

Institutional and Insider Ownership

98.2% of PRA Health Sciences shares are held by institutional investors. Comparatively, 38.2% of Sunesis Pharmaceuticals shares are held by institutional investors. 2.1% of PRA Health Sciences shares are held by company insiders. Comparatively, 10.2% of Sunesis Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

PRA Health Sciences beats Sunesis Pharmaceuticals on 11 of the 14 factors compared between the two stocks.

PRA Health Sciences Company Profile

PRA Health Sciences, Inc. is a contract research organization. The Company provides outsourced clinical development services to the biotechnology and pharmaceutical industries. The Company offers therapeutic services in areas of pharmaceutical development, including oncology, central nervous system, inflammation and infectious diseases. Its services include data management, statistical analysis, clinical trial management, and regulatory and drug development consulting. It provides its clients with clinical development service offerings, which includes both traditional, project-based Phase I through Phase IV services, as well as embedded and functional outsourcing services. As of December 31, 2016, its clinical development platform included approximately 70 offices across North America, Europe, Asia, Latin America, South Africa, Australia and the Middle East. The Company’s service offerings include product registration, strategic solutions and early development services.

Sunesis Pharmaceuticals Company Profile

Sunesis Pharmaceuticals, Inc. is a biopharmaceutical company. The Company focuses on the development and commercialization of its pipeline of oncology therapeutics for the treatment of solid and hematologic cancers. The Company offers QINPREZO (vosaroxin), which is a product candidate for the treatment of acute myeloid leukemia (AML). Vosaroxin is an anticancer quinolone derivative (AQD). The Company’s other kinase inhibitor pipeline include TAK-580, SNS-062 and SNS-229. TAK-580 is an oral, investigative drug selective for pan-Raf kinase inhibition, in patients with relapsed or refractory solid tumors. SNS-062 is a non-covalently binding inhibitor of Bruton’s tyrosine kinase (BTK). The Company has completed the pre-clinical studies for SNS-062. SNS-229 and SNS-510 are two PDK1 inhibitors. PDK1 is a kinase and mediator of Phosphoinositide 3-kinase/AKT (PI3K/AKT) signaling, which is a pathway involved in cell growth, differentiation, survival and migration.

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