Critical Contrast: Adaptimmune Therapeutics (ADAP) & DURECT (DRRX)

DURECT (NASDAQ: DRRX) and Adaptimmune Therapeutics (NASDAQ:ADAP) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, valuation, institutional ownership and risk.

Earnings & Valuation

This table compares DURECT and Adaptimmune Therapeutics’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
DURECT $14.02 million 11.87 -$34.50 million ($0.15) -7.47
Adaptimmune Therapeutics $14.20 million 56.87 -$71.57 million ($0.76) -11.34

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

Institutional & Insider Ownership

46.8% of DURECT shares are held by institutional investors. Comparatively, 55.0% of Adaptimmune Therapeutics shares are held by institutional investors. 10.3% of DURECT shares are held by company insiders. Comparatively, 24.5% of Adaptimmune Therapeutics shares are held by company 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 DURECT and Adaptimmune Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DURECT -62.57% -419.65% -45.77%
Adaptimmune Therapeutics -138.46% -27.99% -21.47%

Volatility and Risk

DURECT has a beta of 1.79, indicating that its stock price is 79% more volatile than the S&P 500. Comparatively, Adaptimmune Therapeutics has a beta of 1.74, indicating that its stock price is 74% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for DURECT and Adaptimmune Therapeutics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DURECT 0 2 1 0 2.33
Adaptimmune Therapeutics 0 1 3 0 2.75

DURECT presently has a consensus price target of $2.67, suggesting a potential upside of 138.10%. Adaptimmune Therapeutics has a consensus price target of $12.50, suggesting a potential upside of 45.01%. Given DURECT’s higher probable upside, research analysts plainly believe DURECT is more favorable than Adaptimmune Therapeutics.

Summary

Adaptimmune Therapeutics beats DURECT on 8 of the 14 factors compared between the two stocks.

About DURECT

Durect Corporation is a biopharmaceutical company with research and development programs. The Company’s products candidates include DUR-928, oral for metabolic/lipid disorders, and DUR-928, injectable for acute organ injuries. Its other product candidates include POSIMIR (controlled release injection of bupivacaine), REMOXY (oral controlled release oxycodone), ORADUR-ADHD, ELADUR (controlled release injection of bupivicane), Relday (risperidone), ORADUR-based opioid (hydromorphone) and SABER-based ophthalmic. The Company’s ALZET product line consists of miniature, implantable osmotic pumps and accessories used for experimental research in mice, rats and other laboratory animals. The Company also manufactures and sells osmotic pumps used in laboratory research and design; and develops and manufactures a range of standard and custom biodegradable polymers and excipients for pharmaceutical and medical device clients for use as raw materials in their products.

About Adaptimmune Therapeutics

Adaptimmune Therapeutics plc is a clinical-stage biopharmaceutical company. The Company is focused on cancer immunotherapy products based on its Specific Peptide Enhanced Affinity Receptor (SPEAR) T-cell platform. The Company has developed a platform that enables it to identify cancer targets, find and genetically engineer TCR, and produce TCR therapeutic candidates for administration to patients. The Company engineers TCRs to increase the affinity to cancer specific peptides in order to destroy cancer cells in patients. The Company is developing multiple SPEAR T-cells to different target peptides in selected disease indications to increase the probability of treating patients with a given disease indication and potentially the ability for re-treatment of patients with a different SPEAR T-cell. It has three SPEAR T-cells in clinical trials, which are directed to cancer testis antigens, NY-ESO-1, MAGE-A4 and MAGE-A10.

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