Prothena Corporation PLC (NASDAQ: PRTA) and Raptor Pharmaceutical Corp (NASDAQ:RPTP) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, earnings, dividends, profitability, valuation and risk.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Prothena Corporation PLC and Raptor Pharmaceutical Corp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Prothena Corporation PLC 0 0 12 0 3.00
Raptor Pharmaceutical Corp 0 3 0 0 2.00

Prothena Corporation PLC currently has a consensus target price of $78.64, indicating a potential upside of 33.46%. Raptor Pharmaceutical Corp has a consensus target price of $6.50, indicating a potential downside of 27.78%. Given Prothena Corporation PLC’s stronger consensus rating and higher possible upside, equities analysts clearly believe Prothena Corporation PLC is more favorable than Raptor Pharmaceutical Corp.

Valuation & Earnings

This table compares Prothena Corporation PLC and Raptor Pharmaceutical Corp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Prothena Corporation PLC $27.53 million 81.92 -$135.60 million ($4.12) -14.30
Raptor Pharmaceutical Corp N/A N/A N/A ($1.03) -8.74

Raptor Pharmaceutical Corp has higher revenue, but lower earnings than Prothena Corporation PLC. Prothena Corporation PLC is trading at a lower price-to-earnings ratio than Raptor Pharmaceutical Corp, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

54.9% of Raptor Pharmaceutical Corp shares are held by institutional investors. 3.1% of Prothena Corporation PLC shares are held by insiders. Comparatively, 5.6% of Raptor Pharmaceutical Corp shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Prothena Corporation PLC and Raptor Pharmaceutical Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Prothena Corporation PLC -527.56% -33.20% -27.66%
Raptor Pharmaceutical Corp -43.75% -77.01% -15.64%

Volatility and Risk

Prothena Corporation PLC has a beta of 2.59, suggesting that its stock price is 159% more volatile than the S&P 500. Comparatively, Raptor Pharmaceutical Corp has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500.

Summary

Prothena Corporation PLC beats Raptor Pharmaceutical Corp on 6 of the 11 factors compared between the two stocks.

Prothena Corporation PLC Company Profile

Prothena Corporation Public Limited Company is a global biotechnology company. The Company is focused on the discovery, development and commercialization of immunotherapies for the treatment of diseases that involve protein misfolding or cell adhesion. The Company’s clinical pipeline of antibody-based product candidates targets a range of indications, including Amyloid Light-chain (AL) amyloidosis (NEOD001), Parkinson’s disease and other related synucleinopathies (PRX002), and inflammatory diseases, including psoriasis and psoriatic arthritis (PRX003) and ATTR amyloidosis (PRX004). The Company has generated monoclonal antibodies that selectively bind to amyloidogenic (diseased) forms of the Transthyretin (TTR)-mediated amyloidosis (ATTR) protein. The Company’s pipeline also includes late discovery-stage programs for which the Company is testing the efficacy of antibodies in preclinical models of diseases related to amyloid or cell adhesion.

Raptor Pharmaceutical Corp Company Profile

Raptor Pharmaceutical Corp. (Raptor) is a biopharmaceutical company. The Company is focused on developing and commercializing transformative treatments for people affected by diseases. Its product, PROCYSBI (cysteamine bitartrate) is a delayed-release capsules for the management of nephropathic cystinosis in adults and children of over six years. In Europe, PROCYSBI gastro-resistant hard capsules of cysteamine (as mercaptamine bitartrate), is indicated as an orphan medicinal product for the management of nephropathic cystinosis. Its QUINSAIR is a formulation of the antibiotic drug levofloxacin, suitable for inhalation via a nebulizer. It is engaged in developing MP-376 for non-CF bronchiectasis (BE) and nontuberculous mycobacteria (NTM) lung infections. It is also engaged in developing RP105 and RP106 for various diseases.

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