Peregrine Pharmaceuticals (NASDAQ: PPHM) and Syndax Pharmaceuticals (NASDAQ:SNDX) are both small-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, valuation, profitabiliy, institutional ownership, analyst recommendations, risk and dividends.

Insider & Institutional Ownership

86.9% of Peregrine Pharmaceuticals shares are held by institutional investors. Comparatively, 53.6% of Syndax Pharmaceuticals shares are held by institutional investors. 4.9% of Peregrine Pharmaceuticals shares are held by insiders. Comparatively, 24.1% of Syndax Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Peregrine Pharmaceuticals and Syndax Pharmaceuticals’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Peregrine Pharmaceuticals $57.63 million 3.15 -$25.80 million ($0.93) -4.33
Syndax Pharmaceuticals $1.22 million 215.08 -$48.05 million ($2.61) -4.57

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

Profitability

This table compares Peregrine Pharmaceuticals and Syndax Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Peregrine Pharmaceuticals -48.86% -63.75% -25.31%
Syndax Pharmaceuticals -3,861.72% -52.82% -41.67%

Volatility and Risk

Peregrine Pharmaceuticals has a beta of 2.43, meaning that its share price is 143% more volatile than the S&P 500. Comparatively, Syndax Pharmaceuticals has a beta of 4.75, meaning that its share price is 375% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Peregrine Pharmaceuticals and Syndax Pharmaceuticals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Peregrine Pharmaceuticals 0 1 2 0 2.67
Syndax Pharmaceuticals 0 0 10 0 3.00

Peregrine Pharmaceuticals presently has a consensus target price of $5.25, indicating a potential upside of 30.27%. Syndax Pharmaceuticals has a consensus target price of $26.00, indicating a potential upside of 117.94%. Given Syndax Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts plainly believe Syndax Pharmaceuticals is more favorable than Peregrine Pharmaceuticals.

Summary

Syndax Pharmaceuticals beats Peregrine Pharmaceuticals on 7 of the 13 factors compared between the two stocks.

About Peregrine Pharmaceuticals

Peregrine Pharmaceuticals, Inc. (Peregrine) is a biopharmaceutical company. The Company operates through two segments: Peregrine, which is engaged in the research and development of monoclonal antibodies for the treatment of cancer, and Avid, which is engaged in providing contract manufacturing services for third party customers on a fee-for-service basis while also supporting its internal drug development efforts. Bavituximab is its lead immunotherapy candidate. Bavituximab is a monoclonal antibody that targets and binds to phosphatidylserine (PS), a immunosuppressive molecule that is usually located inside the membrane of healthy cells, but then flips and becomes exposed on the outside of cells in the tumor microenvironment, causing the tumor to evade immune detection. The Company’s subsidiary is Avid Bioservices, Inc. (Avid). Avid provides integrated current good manufacturing practices (cGMP) services from cell line development to commercial biomanufacturing.

About Syndax Pharmaceuticals

Syndax Pharmaceuticals, Inc (Syndax) is a clinical stage biopharmaceutical company focused on developing a pipeline of combination therapies in multiple cancer indications. The Company’s product candidate, entinostat, which was granted Breakthrough Therapy designation by the FDA following positive results from its Phase IIb clinical trial, ENCORE 301, is being evaluated in a Phase III clinical trial for advanced hormone receptor positive breast cancer. It is developing entinostat, which has direct effects on both cancer cells and immune regulatory cells, and SNDX-6352, an anti-CSF-1R monoclonal antibody, to enhance the body’s immune response on tumors that have shown sensitivity to immunotherapy. Entinostat is being evaluated as a combination therapeutic in Phase Ib/II clinical trials with Merck & Co., Inc. for non-small cell lung cancer and melanoma, with Genentech, Inc. for TNBC, and with Pfizer Inc. and Merck KGaA, Darmstadt, Germany, for ovarian cancer.

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