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

Risk and Volatility

Aimmune Therapeutics has a beta of -0.94, meaning that its share price is 194% less volatile than the S&P 500. Comparatively, DARA Biosciences has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500.

Profitability

This table compares Aimmune Therapeutics and DARA Biosciences’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aimmune Therapeutics N/A -44.53% -42.00%
DARA Biosciences -228.42% -145.61% -100.38%

Insider and Institutional Ownership

72.8% of Aimmune Therapeutics shares are owned by institutional investors. 17.6% of Aimmune Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Aimmune Therapeutics and DARA Biosciences’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Aimmune Therapeutics N/A N/A -$80.82 million ($2.25) -13.68
DARA Biosciences N/A N/A N/A ($0.52) -1.69

Aimmune Therapeutics is trading at a lower price-to-earnings ratio than DARA Biosciences, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations and price targets for Aimmune Therapeutics and DARA Biosciences, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aimmune Therapeutics 0 0 3 0 3.00
DARA Biosciences 0 0 0 0 N/A

Aimmune Therapeutics presently has a consensus target price of $51.00, suggesting a potential upside of 65.69%. Given Aimmune Therapeutics’ higher probable upside, research analysts clearly believe Aimmune Therapeutics is more favorable than DARA Biosciences.

Summary

Aimmune Therapeutics beats DARA Biosciences on 7 of the 9 factors compared between the two stocks.

Aimmune Therapeutics Company Profile

Aimmune Therapeutics, Inc. is a clinical-stage biopharmaceutical company developing a therapeutic approach, including the development of product candidates, for the treatment of peanut and other food allergies. The Company’s therapeutic approach, which it refers to as Characterized Oral Desensitization Immunotherapy (CODIT), is a system designed to desensitize patients to food allergens using characterized biologic products, defined treatment protocols and support services. The Company’s lead CODIT product candidate, AR101, is an investigational biologic for the treatment of patients with peanut allergy. The Company has initiated Peanut Allergy Oral Immunotherapy Study of AR101 for Desensitization in Children and Adults (PALISADE), its Phase III registration trial of AR101. The Company is in the process of evaluating additional delivery forms for AR101 for the maintenance phase.

DARA Biosciences Company Profile

DARA BioSciences Inc is specialty pharmaceutical company based in the United States. The Company’s primary focus is on the commercialization of oncology treatment and oncology supportive care pharmaceutical products, including Soltamox, an oral solution of tamoxifen citrate; cancer support therapeutics, including Gelclair, indicated for the treatment of oral mucositis and Bionect, for the management of irritation of the skin as well as first and second degree burns, and Three Mission Pharmacal products, including Ferralet 90 (for anemia), Binosto (alendronate sodium effervescent tablet indicated for the treatment of osteoporosis) and Aquoral (for cancer related dry mouth). The Company has a clinical development asset, KRN5500, which is a Phase II product candidate targeted for treating cancer patients with painful treatment-refractory chronic chemotherapy induced peripheral neuropathy. The Company is a subsidiary of Midatech Pharma Plc.

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