Threshold Pharmaceuticals (NASDAQ: THLD) and Prana Biotechnology (NASDAQ:PRAN) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, valuation, analyst recommendations, earnings, institutional ownership and profitabiliy.

Insider and Institutional Ownership

24.5% of Threshold Pharmaceuticals shares are held by institutional investors. Comparatively, 3.1% of Prana Biotechnology shares are held by institutional investors. 13.0% of Threshold Pharmaceuticals shares are held by insiders. Comparatively, 38.8% of Prana Biotechnology shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Threshold Pharmaceuticals has a beta of 3.26, suggesting that its stock price is 226% more volatile than the S&P 500. Comparatively, Prana Biotechnology has a beta of -0.17, suggesting that its stock price is 117% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Threshold Pharmaceuticals and Prana Biotechnology, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Threshold Pharmaceuticals 0 0 1 0 3.00
Prana Biotechnology 0 0 0 0 N/A

Threshold Pharmaceuticals presently has a consensus price target of $0.52, suggesting a potential upside of 10.66%. Given Threshold Pharmaceuticals’ higher possible upside, equities research analysts plainly believe Threshold Pharmaceuticals is more favorable than Prana Biotechnology.

Profitability

This table compares Threshold Pharmaceuticals and Prana Biotechnology’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Threshold Pharmaceuticals N/A -105.02% -81.96%
Prana Biotechnology N/A N/A N/A

Earnings & Valuation

This table compares Threshold Pharmaceuticals and Prana Biotechnology’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Threshold Pharmaceuticals N/A N/A -$20.29 million ($0.30) -1.57
Prana Biotechnology $3.03 million 1.37 -$6.56 million N/A N/A

Prana Biotechnology has higher revenue and earnings than Threshold Pharmaceuticals.

Summary

Prana Biotechnology beats Threshold Pharmaceuticals on 5 of the 9 factors compared between the two stocks.

About Threshold Pharmaceuticals

Threshold Pharmaceuticals, Inc. is a clinical-stage biotechnology company. The Company is engaged in the discovery and development of therapeutic and diagnostic agents that selectively target tumor cells for the treatment of patients living with cancer. It is developing two therapeutic product candidates based on hypoxia-activated prodrug technology: evofosfamide and tarloxotinib. Evofosfamide is designed as a prodrug that is activated under the extreme hypoxic conditions commonly found in tumors, but not in healthy tissues. Tarloxotinib is under investigation in two Phase II proof-of-concept trials: one for the treatment of patients with mutant EGFR-positive, T790M-negative advanced NSCLC progressing on an EGFR TKI, and the other for patients with recurrent or metastatic squamous cell carcinomas of the head and neck. [18F]-HX4 is an investigational Positron Emission Tomography imaging agent for hypoxia to identify and quantify the degree of hypoxia in tumors in vivo.

About Prana Biotechnology

Prana Biotechnology Limited is a development-stage medical biotechnology company. The Company is engaged in the research and development of therapeutic drugs designed to treat the underlying cause of degeneration of the brain focusing on Alzheimer’s disease, Huntington disease, Parkinson’s disease and other neurological disorders. The Company’s lead product candidates are PBT2 and PBT434. The Company’s lead drug candidate PBT2 is being developed for the treatment of Alzheimer’s and Huntington’s diseases. The Company also has advanced a drug candidate for Parkinson’s disease and other movement disorders (PBT434) and brain cancer (PBT519), which are in pre-clinical toxicology testing. Its other applications for its therapies include certain cancers, age-related macular degeneration, Motor Neuron disease, Creutzfeldt-Jakob disease (the human variant of Mad Cow disease), and a range of orphan neurodegenerative disorders.

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