Intercept Pharmaceuticals (NASDAQ: PRAN) and Prana Biotechnology (NASDAQ:PRAN) are both medical companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, earnings, profitability, analyst recommendations, institutional ownership, valuation and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
Intercept Pharmaceuticals -215.30% -614.15% -66.82%
Prana Biotechnology N/A N/A N/A

Institutional and Insider Ownership

69.4% of Intercept Pharmaceuticals shares are owned by institutional investors. Comparatively, 3.8% of Prana Biotechnology shares are owned by institutional investors. 4.9% of Intercept Pharmaceuticals shares are owned by company insiders. Comparatively, 38.8% of Prana Biotechnology shares are owned by company 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.

Earnings & Valuation

This table compares Intercept Pharmaceuticals and Prana Biotechnology’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Intercept Pharmaceuticals $130.96 million 27.20 -$360.36 million ($14.38) -8.38
Prana Biotechnology $150,000.00 118.07 -$6.40 million ($0.70) -2.84

Prana Biotechnology has lower revenue, but higher earnings than Intercept Pharmaceuticals. Intercept Pharmaceuticals is trading at a lower price-to-earnings ratio than Prana Biotechnology, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Intercept Pharmaceuticals has a beta of -1.72, meaning that its stock price is 272% less volatile than the S&P 500. Comparatively, Prana Biotechnology has a beta of -0.02, meaning that its stock price is 102% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for Intercept Pharmaceuticals and Prana Biotechnology, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Intercept Pharmaceuticals 2 10 10 1 2.43
Prana Biotechnology 0 0 1 0 3.00

Intercept Pharmaceuticals presently has a consensus target price of $127.95, suggesting a potential upside of 6.21%. Prana Biotechnology has a consensus target price of $4.00, suggesting a potential upside of 101.01%. Given Prana Biotechnology’s stronger consensus rating and higher possible upside, analysts clearly believe Prana Biotechnology is more favorable than Intercept Pharmaceuticals.

Summary

Prana Biotechnology beats Intercept Pharmaceuticals on 11 of the 15 factors compared between the two stocks.

About Intercept Pharmaceuticals

Intercept Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the development and commercialization of therapeutics in the United States, Europe, and Canada. Its lead product candidate is obeticholic acid (OCA), a bile acid analog, which has a structure based on a naturally occurring human bile acid that selectively binds to and activates the farnesoid X receptor (FXR). The company is developing OCA to treat various non-viral progressive liver diseases, such as nonalcoholic steatohepatitis (NASH), primary sclerosing cholangitis, and biliary atresia. It also provides OCA under the Ocaliva brand name for the treatment of primary biliary cholangitis (PBC). In addition, the company is developing INT-767, an orally administered dual FXR and TGR5 agonist, a second dedicated bile acid receptor that has completed a Phase 1 clinical trial; and INT-777, an orally administered TGR5 agonist, which completed preclinical studies for the treatment of type 2 diabetes, associated metabolic disorders, and other gastrointestinal indications. Intercept Pharmaceuticals, Inc. has a license agreement with Sumitomo Dainippon Pharma Co. Ltd. for the research, development, and commercialization of OCA as a therapeutic for the treatment of PBC and NASH in Japan and China. The company was founded in 2002 and is headquartered in New York, New York.

About Prana Biotechnology

Prana Biotechnology Limited develops therapies for the treatment of Alzheimer's disease, Huntington disease, and other neurodegenerative disorders in Australia. Its lead drug candidates include PBT2, which is in Phase IIb clinical trials for the treatment of Alzheimer's: and that is in Phase IIa clinical trials for the treatment of Huntington's diseases. The company is also developing PBT434, which is in preclinical toxicology stage for the treatment for Parkinson's disease and other movement disorders; and PBT 519 that is in preclinical toxicology stage for the treatment of brain cancer. It also has a library of approximately 1000 metal protein attenuating compounds. The company has a research collaboration agreement with Takeda Pharmaceuticals International, Inc. to slow or prevent neurodegeneration of the gastrointestinal system through PBT434, an investigational movement disorders compound. Prana Biotechnology Limited was founded in 1997 and is based in Melbourne, Australia.

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