Comparing Mereo BioPharma Group (NASDAQ:MREO) & Protalix BioTherapeutics (NYSE:PLX)

Mereo BioPharma Group (NASDAQ:MREO) and Protalix BioTherapeutics (NYSE:PLX) are both small-cap healthcare companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, risk, profitability, analyst recommendations, institutional ownership and valuation.

Volatility and Risk

Mereo BioPharma Group has a beta of 0.32, suggesting that its share price is 68% less volatile than the S&P 500. Comparatively, Protalix BioTherapeutics has a beta of 0.02, suggesting that its share price is 98% less volatile than the S&P 500.

Earnings & Valuation

This table compares Mereo BioPharma Group and Protalix BioTherapeutics”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mereo BioPharma Group	$500,000.00	89.75	-$41.88 million	($0.04)	-7.03
Protalix BioTherapeutics	$80.62 million	2.69	$8.31 million	$0.23	11.72

Protalix BioTherapeutics has higher revenue and earnings than Mereo BioPharma Group. Mereo BioPharma Group is trading at a lower price-to-earnings ratio than Protalix BioTherapeutics, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

62.8% of Mereo BioPharma Group shares are owned by institutional investors. Comparatively, 16.5% of Protalix BioTherapeutics shares are owned by institutional investors. 6.5% of Mereo BioPharma Group shares are owned by company insiders. Comparatively, 6.7% of Protalix BioTherapeutics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Mereo BioPharma Group and Protalix BioTherapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mereo BioPharma Group	N/A	-74.82%	-64.28%
Protalix BioTherapeutics	-21.03%	-30.89%	-11.74%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Mereo BioPharma Group and Protalix BioTherapeutics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mereo BioPharma Group	2	3	3	0	2.12
Protalix BioTherapeutics	0	0	1	0	3.00

Mereo BioPharma Group presently has a consensus price target of $1.67, suggesting a potential upside of 493.12%. Protalix BioTherapeutics has a consensus price target of $12.00, suggesting a potential upside of 345.27%. Given Mereo BioPharma Group’s higher possible upside, equities research analysts plainly believe Mereo BioPharma Group is more favorable than Protalix BioTherapeutics.

About Mereo BioPharma Group

Mereo BioPharma Group plc, a biopharmaceutical company, develops and commercializes therapeutics for the treatment of oncology and rare diseases in the United Kingdom, the United States, and internationally. It develops Etigilimab (MPH-313), an antibody T-cell immunoreceptor with Ig and ITIM domains, which is in Phase 1b clinical trial for the treatment of tumors. The company is also developing Navicixizumab (OMP-305B83), which has completed Phase 1b clinical trials for the treatment of the late line ovarian cancer; Acumapimod (BCT-197), a p38 MAP kinase inhibitor that is in Phase II clinical trials to treat acute exacerbations of chronic obstructive pulmonary disease; and Leflutrozole (BGS-649), an oral aromatase inhibitor for the treatment of hypogonadotropic hypogonadism which is in Phase 2 trials. In addition, it develops rare disease product candidates, including Setrusumab (BPS-804), an antibody for the treatment of osteogenesis imperfecta; and Alvelestat (MPH-966), an oral small molecule that is in Phase II clinical trial to treat Alpha-1 anti-trypsin deficiency. The company has a license agreement with Feng Biosciences for the development and commercialization of navicixizumab; license agreement with ReproNovo for the development and commercialization of leflutrozole; licensing agreement with AstraZeneca; and license agreement with Ultragenyx Pharmaceutical Inc. to develop and commercialize setrusumab. Mereo BioPharma Group plc was incorporated in 2015 and is headquartered in London, the United Kingdom.

About Protalix BioTherapeutics

Protalix BioTherapeutics, Inc., a biopharmaceutical company, engages in the development, production, and commercialization of recombinant therapeutic proteins based on its proprietary ProCellEx plant cell-based protein expression system in the United States, Australia, Canada, Israel, Brazil, Russia, Turkey, and internationally. The company offers Elelyso for the treatment of Gaucher disease; and Elfabrio for the treatment of adult patients with a confirmed diagnosis of Fabry disease. It is also developing PRX-115, a plant cell-expressed recombinant PEGylated Uricase which is in Phase I trial for the treatment of gout; and PRX-119, a plant cell-expressed PEGylated recombinant human DNase I product candidate that is in preclinical phase for the treatment of NETs-related diseases. The company has agreements and partnerships with Pfizer; Fundação Oswaldo Cruz; and Chiesi Farmaceutici S.p.A. The company was incorporated in 1993 and is headquartered in Karmiel, Israel. Protalix BioTherapeutics, Inc. is a subsidiary of Protalix Ltd.