Uniqure (NASDAQ: QURE) and Reata Pharmaceuticals (NASDAQ:RETA) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, risk and dividends.

Institutional & Insider Ownership

25.0% of Uniqure shares are held by institutional investors. Comparatively, 29.5% of Reata Pharmaceuticals shares are held by institutional investors. 0.7% of Uniqure shares are held by insiders. Comparatively, 44.0% of Reata Pharmaceuticals shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Uniqure and Reata Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Uniqure -338.39% -170.28% -40.50%
Reata Pharmaceuticals -69.44% N/A -34.36%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Uniqure and Reata Pharmaceuticals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Uniqure 0 2 6 0 2.75
Reata Pharmaceuticals 0 0 8 0 3.00

Uniqure currently has a consensus target price of $19.86, indicating a potential upside of 2.36%. Reata Pharmaceuticals has a consensus target price of $54.71, indicating a potential upside of 103.70%. Given Reata Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts plainly believe Reata Pharmaceuticals is more favorable than Uniqure.

Valuation and Earnings

This table compares Uniqure and Reata Pharmaceuticals’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Uniqure $25.10 million 23.81 -$73.37 million ($2.61) -7.43
Reata Pharmaceuticals $49.86 million 14.07 -$6.22 million ($1.46) -18.40

Reata Pharmaceuticals has higher revenue and earnings than Uniqure. Reata Pharmaceuticals is trading at a lower price-to-earnings ratio than Uniqure, indicating that it is currently the more affordable of the two stocks.

Summary

Reata Pharmaceuticals beats Uniqure on 11 of the 13 factors compared between the two stocks.

Uniqure Company Profile

Uniqure NV is a gene therapy company based in the Netherlands. The Company is engaged in the discovery, development and commercialization of single treatments with curative results for patients suffering from genetic and other severe diseases. The Company advances a focused pipeline of gene therapies that are developed both internally and through partnerships. The Company’s product candidates within the Core Program include AMT-061 for Hemophilia B, AMT-130 for Huntington’s disease and S100A1 for congestive heart failure. The Company, through its collaboration with Bristol Myers-Squibb (BMS), is focused on building a portfolio of gene therapies led by the S100A1 program for congestive heart failure.

Reata Pharmaceuticals Company Profile

Reata Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company. The Company is focused on identifying, developing and commercializing product candidates that modulate the activity of regulatory proteins involved in the biology of mitochondrial function, oxidative stress, and inflammation to address the unmet medical needs of patients with a range of serious or life-threatening diseases. The Company’s lead product candidates include bardoxolone methyl, which is being studied in Phase III trial for the treatment of pulmonary arterial hypertension (PAH), associated with connective tissue disease (CTD-PAH), as well as a Phase II trial for the treatment of pulmonary hypertension due to interstitial lung disease (PH-ILD), and PAH, each of which are subsets of pulmonary hypertension (PH), Omaveloxolone, which is in Phase II clinical development for the treatment of multiple diseases, including Friedreich’s ataxia, mitochondrial myopathies and metastatic melanoma.

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