Sierra Oncology (NASDAQ: SRRA) and PTC Therapeutics (NASDAQ:PTCT) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, analyst recommendations, valuation, institutional ownership, profitability and earnings.
Valuation and Earnings
This table compares Sierra Oncology and PTC Therapeutics’ gross revenue, earnings per share (EPS) and valuation.
||Earnings Per Share
Sierra Oncology has higher earnings, but lower revenue than PTC Therapeutics. PTC Therapeutics is trading at a lower price-to-earnings ratio than Sierra Oncology, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Sierra Oncology has a beta of 2.29, meaning that its stock price is 129% more volatile than the S&P 500. Comparatively, PTC Therapeutics has a beta of 1.71, meaning that its stock price is 71% more volatile than the S&P 500.
This is a breakdown of recent ratings for Sierra Oncology and PTC Therapeutics, as provided by MarketBeat.
||Strong Buy Ratings
PTC Therapeutics has a consensus price target of $22.33, suggesting a potential downside of 26.05%. Given PTC Therapeutics’ higher probable upside, analysts clearly believe PTC Therapeutics is more favorable than Sierra Oncology.
Institutional & Insider Ownership
43.3% of Sierra Oncology shares are owned by institutional investors. Comparatively, 91.8% of PTC Therapeutics shares are owned by institutional investors. 5.7% of Sierra Oncology shares are owned by insiders. Comparatively, 8.1% of PTC Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This table compares Sierra Oncology and PTC Therapeutics’ net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Sierra Oncology Company Profile
Sierra Oncology, Inc., formerly ProNAi Therapeutics, Inc., is a clinical-stage drug development company. The Company’s lead drug candidate, SRA737, is orally bioavailable small molecule inhibitor of Checkpoint kinase 1 (Chk1), a key cell cycle checkpoint and central regulator of the deoxyribonucleic acid (DNA) Damage Response (DDR) network. SRA737 is being investigated in approximately two Phase I clinical trials in patients with advanced cancer. Sierra Oncology is also advancing SRA141, an orally bioavailable small molecule inhibitor of the cell division cycle 7 kinase (Cdc7) kinase undergoing preclinical development. Sierra is building a range of pipeline of various oncology assets against targets at the edge of cancer biology. The Company’s SRA737 and SRA141 target the DDR network, a scientifically approach with far-reaching potential across oncology. SRA141 is an orally available small molecule inhibitor of Cdc7.
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.
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