Proteon Therapeutics (NASDAQ: PRTO) and NeuroDerm (NASDAQ:NDRM) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, dividends, earnings and risk.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Proteon Therapeutics and NeuroDerm, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Proteon Therapeutics 0 7 1 0 2.13
NeuroDerm 0 3 5 0 2.63

Proteon Therapeutics currently has a consensus target price of $9.00, indicating a potential upside of 414.29%. NeuroDerm has a consensus target price of $45.86, indicating a potential upside of 17.96%. Given Proteon Therapeutics’ higher probable upside, equities analysts clearly believe Proteon Therapeutics is more favorable than NeuroDerm.

Earnings & Valuation

This table compares Proteon Therapeutics and NeuroDerm’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Proteon Therapeutics N/A N/A -$26.35 million ($1.57) -1.11
NeuroDerm N/A N/A -$49.04 million ($1.98) -19.63

NeuroDerm is trading at a lower price-to-earnings ratio than Proteon Therapeutics, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Proteon Therapeutics and NeuroDerm’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Proteon Therapeutics N/A -72.02% -64.41%
NeuroDerm N/A -38.82% -36.88%

Risk and Volatility

Proteon Therapeutics has a beta of 1.5, suggesting that its share price is 50% more volatile than the S&P 500. Comparatively, NeuroDerm has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500.

Institutional and Insider Ownership

47.2% of Proteon Therapeutics shares are held by institutional investors. Comparatively, 52.4% of NeuroDerm shares are held by institutional investors. 36.3% of Proteon Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

About Proteon Therapeutics

Proteon Therapeutics, Inc. is a late-stage biopharmaceutical company, which focuses on the development of pharmaceuticals to address the needs of patients with renal and vascular disease. The Company is involved in research and development activities. The Company’s product candidate, product candidate, vonapanitase, formerly PRT-201, is a recombinant human elastase that it is developing to manage vascular access failure in patients with chronic kidney disease undergoing or planning for hemodialysis, a lifesaving treatment that cannot be conducted without a functioning vascular access. The Company has completed Phase II trial of vonapanitase in patients undergoing creation of an arteriovenous fistula (AVF). The Company initiated the first of two Phase III trials, PATENCY-1, for vonapanitase in radiocephalic AVFs. Its vonapanitase product candidate is a recombinant human elastase under development as a treatment to prevent AVF and arteriovenous graft (AVG) patency loss.

About NeuroDerm

NeuroDerm Ltd. is an Israel-based clinical-stage pharmaceutical company. The Company is engaged in developing treatments for central nervous system (CNS) disorders, primarily Parkinson’s disease, as well as other CNS diseases. The Company’s Parkinson’s disease product candidates are drug-device combination products, with devices and varying levodopa (LD)/carbidopa (CD) or apomorphine concentrations and dosages. Its liquid LD/CD and apomorphine formulations include ND0612H, ND0612L and ND0701. It is developing ND0612H for the treatment of patients suffering from severe Parkinson’s disease. It is developing ND0612L for the treatment of patients at the moderate stage of Parkinson’s disease that can no longer control motor complications with oral levodopa. It has also designed ND0701, which is an apomorphine-based product. ND0701 is for patients suffering from Parkinson’s disease, may be used mostly by patients suffering from high motor fluctuations and not responding well to LD/CD.

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