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

Institutional and Insider Ownership

66.2% of Adaptimmune Therapeutics shares are held by institutional investors. Comparatively, 73.3% of Jounce Therapeutics shares are held by institutional investors. 22.4% of Adaptimmune Therapeutics shares are held by company insiders. Comparatively, 44.4% of Jounce Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Adaptimmune Therapeutics and Jounce Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Adaptimmune Therapeutics -161.09% -42.78% -36.28%
Jounce Therapeutics -46.07% -29.64% -13.63%

Volatility & Risk

Adaptimmune Therapeutics has a beta of 1.62, indicating that its share price is 62% more volatile than the S&P 500. Comparatively, Jounce Therapeutics has a beta of 3.44, indicating that its share price is 244% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Adaptimmune Therapeutics and Jounce Therapeutics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Adaptimmune Therapeutics 0 3 5 0 2.63
Jounce Therapeutics 1 1 2 0 2.25

Adaptimmune Therapeutics currently has a consensus target price of $7.03, indicating a potential upside of 344.62%. Jounce Therapeutics has a consensus target price of $12.50, indicating a potential upside of 229.82%. Given Adaptimmune Therapeutics’ stronger consensus rating and higher possible upside, research analysts plainly believe Adaptimmune Therapeutics is more favorable than Jounce Therapeutics.

Valuation & Earnings

This table compares Adaptimmune Therapeutics and Jounce Therapeutics’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Adaptimmune Therapeutics $59.51 million 2.78 -$95.51 million ($0.96) -1.65
Jounce Therapeutics $65.20 million 1.92 -$27.38 million ($0.84) -4.51

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

Summary

Jounce Therapeutics beats Adaptimmune Therapeutics on 9 of the 14 factors compared between the two stocks.

Adaptimmune Therapeutics Company Profile

Adaptimmune Therapeutics plc, a clinical-stage biopharmaceutical company, focuses on providing novel cell therapies primarily to patients with solid tumors in the United States. The company's specific peptide enhanced affinity receptor T-cell platform enables it to identify cancer targets. It is involved in developing ADP-A2M10 that is in the phase I clinical trials for the treatment of non-small cell lung cancer (NSCLC), as well as urothelial, melanoma, and head and neck cancers; ADP-A2M4 that is in phase I clinical trial for solid tumor indication that include urothelial, melanoma, head and neck, ovarian, NSCLC, esophageal, gastric, synovial sarcoma, and myxoid round cell liposarcoma cancers; and ADP-A2AFP that is in phase I clinical trial for hepatocellular carcinoma. The company has a strategic collaboration and license agreement with GSK to research, develop, and commercialize NY-ESO T-cell therapy. Adaptimmune Therapeutics plc was founded in 2008 and is headquartered in Abingdon, the United Kingdom.

Jounce Therapeutics Company Profile

Jounce Therapeutics, Inc., a clinical-stage immunotherapy company, develops therapies for the treatment of cancer. The company offers vopratelimab, a clinical-stage monoclonal antibody that binds to and activates the Inducible T cell CO-Stimulator, a protein on the surface of T cells found in various solid tumors, which is in Phase I/II clinical trial for the treatment of head and neck squamous cell cancer, non-small cell lung cancer, triple negative breast cancer, gastric cancer, and other tumor types identified through its translational science platform. It is also developing JTX-4014, a monoclonal antibody that is in Phase I clinical trial for combination therapy; and JTX-8064, a monoclonal antibody that binds to leukocyte immunoglobulin like receptor B2 that is in the IND-enabling phase. The company has a master research and collaboration agreement with Celgene Corporation focused on developing and commercializing biologic immunotherapies. Jounce Therapeutics, Inc. was incorporated in 2012 and is headquartered in Cambridge, Massachusetts.

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