Financial Analysis: Immutep (NASDAQ:IMMP) versus Prothena (NASDAQ:PRTA)

Immutep (NASDAQ:IMMP) and Prothena (NASDAQ:PRTA) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, valuation, analyst recommendations, institutional ownership, profitability and dividends.

Analyst Ratings

This is a summary of current recommendations and price targets for Immutep and Prothena, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Immutep 0 0 2 0 3.00
Prothena 0 0 8 0 3.00

Immutep presently has a consensus target price of $8.50, indicating a potential upside of 72.06%. Prothena has a consensus target price of $47.14, indicating a potential upside of 2.06%. Given Immutep’s higher probable upside, equities analysts clearly believe Immutep is more favorable than Prothena.

Earnings and Valuation

This table compares Immutep and Prothena’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Immutep $4.92 million 69.89 -$9.04 million N/A N/A
Prothena $850,000.00 2,387.58 -$111.14 million ($2.78) -16.53

Immutep has higher revenue and earnings than Prothena.

Volatility and Risk

Immutep has a beta of 2.17, suggesting that its share price is 117% more volatile than the S&P 500. Comparatively, Prothena has a beta of 1.56, suggesting that its share price is 56% more volatile than the S&P 500.

Profitability

This table compares Immutep and Prothena’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Immutep N/A N/A N/A
Prothena -14,255.73% -57.65% -34.35%

Institutional & Insider Ownership

6.9% of Immutep shares are owned by institutional investors. Comparatively, 90.5% of Prothena shares are owned by institutional investors. 30.4% of Prothena shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Immutep beats Prothena on 7 of the 11 factors compared between the two stocks.

About Immutep

Immutep Limited, a biotech company, engages in the research and development of pharmaceutical product candidates. The company develops immunotherapeutic products for the treatment of cancer and autoimmune diseases. Its principal product candidate is IMP321, also known as Â’eftilagimod alpha' or Â’efti', which is a recombinant protein that is in Phase IIb clinical trial as a chemoimmunotherapy combination for metastatic breast cancer termed AIPAC and in a Phase I combination therapy trial in metastatic melanoma termed TACTI-mel; and is being evaluated as a combination therapy in head and neck squamous cell carcinoma and non-small cell lung carcinoma in a Phase II clinical trial called TACTI-002 and an investigator initiated Phase I trial called INSIGHT in advanced solid tumors. Its other products include IMP761, IMP701 and IMP731, all of which are related to lymphocyte activation gene 3, a gene linked to the regulation of T cells in immune responses. Immutep Limited has partnerships with GlaxoSmithKline, Novartis, CYTLIMIC Inc., INSIGHT, and EOC Pharma. The company was formerly known as Prima BioMed Ltd and changed its name to Immutep Limited in November 2017. Immutep Limited was incorporated in 1987 and is based in Sydney, Australia.

About Prothena

Prothena Corporation plc, a late-stage clinical company, focuses on discovery and development of novel therapies for life-threatening diseases in the United States. The company is involved in developing PRX002/RG7935 that is in Phase 2 clinical trial for treating Parkinson's disease and other related synucleinopathies; and PRX004, an antibody that is in Phase 1 clinical trial for the treatment of ATTR amyloidosis. Its discovery-stage programs include Tau for treating Alzheimer's disease, frontotemporal dementia, progressive supranuclear palsy, chronic traumatic encephalopathy, and other tauopathies; AÃ, or Amyloid Beta, a protein for the treatment of Alzheimer's disease; TDP-43 for amyotrophic lateral sclerosis and frontotemporal dementia; and other products for neurodegenerative diseases. The company has a license, development, and commercialization agreement with F. Hoffmann-La Roche Ltd. and Hoffmann-La Roche Inc. to develop and commercialize antibodies that target alpha-synuclein; and a collaboration agreement with Bristol-Myers Squibb to develop antibodies. Prothena Corporation plc was founded in 2012 and is based in Dublin, Ireland.

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