Prana Biotechnology (NASDAQ: PRAN) and Idera Pharmaceuticals (NASDAQ:IDRA) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, earnings, analyst recommendations, valuation and dividends.

Analyst Recommendations

This is a summary of current ratings for Prana Biotechnology and Idera Pharmaceuticals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Prana Biotechnology 0 0 0 0 N/A
Idera Pharmaceuticals 0 0 5 0 3.00

Idera Pharmaceuticals has a consensus price target of $5.75, indicating a potential upside of 115.36%. Given Idera Pharmaceuticals’ higher possible upside, analysts clearly believe Idera Pharmaceuticals is more favorable than Prana Biotechnology.

Valuation and Earnings

This table compares Prana Biotechnology and Idera Pharmaceuticals’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Prana Biotechnology $2.54 million 1.54 -$5.52 million N/A N/A
Idera Pharmaceuticals $16.17 million 24.71 -$42.73 million ($0.33) -8.09

Prana Biotechnology has higher revenue, but lower earnings than Idera Pharmaceuticals.

Profitability

This table compares Prana Biotechnology and Idera Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Prana Biotechnology N/A N/A N/A
Idera Pharmaceuticals -300.63% -61.09% -55.14%

Institutional and Insider Ownership

1.8% of Prana Biotechnology shares are held by institutional investors. Comparatively, 30.9% of Idera Pharmaceuticals shares are held by institutional investors. 38.8% of Prana Biotechnology shares are held by company insiders. Comparatively, 30.3% of Idera Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Risk & Volatility

Prana Biotechnology has a beta of -0.26, meaning that its stock price is 126% less volatile than the S&P 500. Comparatively, Idera Pharmaceuticals has a beta of 2.23, meaning that its stock price is 123% more volatile than the S&P 500.

Summary

Idera Pharmaceuticals beats Prana Biotechnology on 6 of the 11 factors compared between the two stocks.

Prana Biotechnology Company Profile

Prana Biotechnology Limited is a development-stage medical biotechnology company. The Company is engaged in the research and development of therapeutic drugs designed to treat the underlying cause of degeneration of the brain focusing on Alzheimer’s disease, Huntington disease, Parkinson’s disease and other neurological disorders. The Company’s lead product candidates are PBT2 and PBT434. The Company’s lead drug candidate PBT2 is being developed for the treatment of Alzheimer’s and Huntington’s diseases. The Company also has advanced a drug candidate for Parkinson’s disease and other movement disorders (PBT434) and brain cancer (PBT519), which are in pre-clinical toxicology testing. Its other applications for its therapies include certain cancers, age-related macular degeneration, Motor Neuron disease, Creutzfeldt-Jakob disease (the human variant of Mad Cow disease), and a range of orphan neurodegenerative disorders.

Idera Pharmaceuticals Company Profile

Idera Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company focused on the discovery, development and commercialization of therapeutics for oncology and rare diseases. The Company utilizes two drug discovery technology platforms to design and develop drug candidates, which include Toll-like receptor (TLR) targeting technology and third-generation antisense (3GA) technology. Using TLR technology, the Company designs synthetic oligonucleotide-based drug candidates to act by modulating the activity of specific TLRs. Using its 3GA technology, the Company is developing drug candidates to turn off the messenger ribo nucleic acid (mRNA) associated with disease causing genes. The Company’s drug candidates include IMO-8400, IMO-2125 and IMO-9200. The Company has designed TLR antagonists and agonists to act by modulating the activity of targeted TLRs. It is developing its 3GA technology to turn off the mRNA associated with disease causing genes.

Receive News & Ratings for Prana Biotechnology Ltd Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Prana Biotechnology Ltd and related companies with MarketBeat.com's FREE daily email newsletter.