Regenxbio (NASDAQ:RGNX) and Polarityte (NASDAQ:PTE) are both small-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, risk, valuation, dividends, profitability, analyst recommendations and institutional ownership.

Institutional & Insider Ownership

80.9% of Regenxbio shares are owned by institutional investors. Comparatively, 20.2% of Polarityte shares are owned by institutional investors. 14.1% of Regenxbio shares are owned by insiders. Comparatively, 8.4% of Polarityte shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Regenxbio and Polarityte, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Regenxbio 0 2 4 0 2.67
Polarityte 0 2 3 0 2.60

Regenxbio presently has a consensus price target of $70.00, indicating a potential upside of 82.77%. Polarityte has a consensus price target of $5.40, indicating a potential upside of 555.82%. Given Polarityte’s higher possible upside, analysts plainly believe Polarityte is more favorable than Regenxbio.

Volatility & Risk

Regenxbio has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500. Comparatively, Polarityte has a beta of 1.72, meaning that its stock price is 72% more volatile than the S&P 500.

Valuation and Earnings

This table compares Regenxbio and Polarityte’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Regenxbio $35.23 million 40.49 -$94.73 million ($3.26) -11.75
Polarityte $5.65 million 5.61 -$92.49 million ($3.70) -0.22

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

Profitability

This table compares Regenxbio and Polarityte’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Regenxbio -197.23% -27.84% -25.51%
Polarityte -1,636.46% -169.50% -131.92%

Summary

Regenxbio beats Polarityte on 10 of the 14 factors compared between the two stocks.

Regenxbio Company Profile

REGENXBIO Inc., a clinical-stage biotechnology company, provides gene therapy product candidates to deliver genes to cells to address genetic defects or to enable cells in the body to produce therapeutic proteins or antibodies that are intended to impact disease. Its gene therapy product candidates are based on NAV Technology Platform, a proprietary adeno-associated virus (AAV) gene delivery platform. The company's lead product candidate is RGX-314, which is in Phase I/IIa clinical trials for the treatment of wet age-related macular degeneration. It is also developing RGX-121 that is in Phase I/II clinical trials to treat mucopolysaccharidosis type II; RGX-111 for treating mucopolysaccharidosis type I; RGX-181 for the treatment of late infantile neuronal ceroid lipofuscinosis type II disease; and RGX-501, which is in Phase I/II clinical trials to treat homozygous familial hypercholesterolemia. REGENXBIO Inc. also licenses its NAV Technology Platform to other biotechnology and pharmaceutical companies. The company was formerly known as REGENX Biosciences, LLC and changed its name to REGENXBIO Inc. in September 2014. REGENXBIO Inc. was founded in 2008 and is headquartered in Rockville, Maryland.

Polarityte Company Profile

PolarityTE, Inc., a biotechnology and regenerative biomaterials company, focuses on discovering, designing, and developing a range of regenerative tissue products and biomaterials for the fields of medicine, biomedical engineering, and material sciences in the United States. The company operates in two segments, Regenerative Medicine and Contract Services. It offers SkinTE, a tissue product for treatment of defects of the skin, as well as contract research services. The company also develops OsteoTE, an autologous homologous bone regeneration product; and CartTE, an autologous cartilage regeneration product. In addition, it develops AdipoTE to optimize the delivery of autologous fat; AngioTE for vascular regeneration; NeuralTE for peripheral nerve injuries of the extremities, as well as for patients with neuromas or chronic compression due to joint replacements, migraines, craniofacial injuries, carpal tunnel syndrome, and those who have undergone hernia or abdominal-based procedures; UroTE for the delivery of autologous urogenital epithelium and submucosa; LiverTE to address various causes of liver failure; and BowelTE to deliver an optimized autologous construct to aid in the regeneration of bowel tissue. PolarityTE, Inc. is headquartered in Salt Lake City, Utah.

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