PTC Therapeutics (NASDAQ: PTCT) and Prothena Corporation PLC (NASDAQ:PRTA) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, institutional ownership, earnings, risk and valuation.

Profitability

This table compares PTC Therapeutics and Prothena Corporation PLC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PTC Therapeutics -88.43% -81.84% -36.49%
Prothena Corporation PLC -527.56% -33.20% -27.66%

Analyst Recommendations

This is a breakdown of current ratings for PTC Therapeutics and Prothena Corporation PLC, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PTC Therapeutics 0 7 2 0 2.22
Prothena Corporation PLC 0 0 12 0 3.00

PTC Therapeutics currently has a consensus target price of $17.13, indicating a potential downside of 12.81%. Prothena Corporation PLC has a consensus target price of $79.73, indicating a potential upside of 28.61%. Given Prothena Corporation PLC’s stronger consensus rating and higher possible upside, analysts clearly believe Prothena Corporation PLC is more favorable than PTC Therapeutics.

Volatility and Risk

PTC Therapeutics has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500. Comparatively, Prothena Corporation PLC has a beta of 2.59, meaning that its share price is 159% more volatile than the S&P 500.

Earnings and Valuation

This table compares PTC Therapeutics and Prothena Corporation PLC’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
PTC Therapeutics $122.69 million 6.61 -$90.43 million ($3.10) -6.34
Prothena Corporation PLC $27.53 million 86.18 -$135.60 million ($4.12) -15.05

PTC Therapeutics has higher revenue and earnings than Prothena Corporation PLC. Prothena Corporation PLC is trading at a lower price-to-earnings ratio than PTC Therapeutics, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

81.3% of PTC Therapeutics shares are held by institutional investors. 8.1% of PTC Therapeutics shares are held by company insiders. Comparatively, 3.1% of Prothena Corporation PLC shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Prothena Corporation PLC beats PTC Therapeutics on 7 of the 13 factors compared between the two stocks.

About PTC Therapeutics

PTC Therapeutics, Inc. is a biopharmaceutical company. The Company is focused on the discovery, development and commercialization of medicines using its expertise in ribonucleic acid (RNA) biology. Its product pipeline includes Ataluren (Translarna), PTC596 and RG7916. Its product candidate, ataluren, is an orally administered small-molecule compound for the treatment of patients with genetic disorders due to a nonsense mutation. Ataluren is in clinical development for the treatment of Duchenne muscular dystrophy caused by a nonsense mutation (nmDMD) and cystic fibrosis caused by a nonsense mutation (nmCF). PTC596 is an orally active small molecule that targets tumor stem cell populations by reducing the function, activity and amount of BMI1. RG7916 is an investigational oral therapeutic, which is in two clinical studies: SUNFISH, a trial in childhood onset (Type II/III) spinal muscular atrophy (SMA) patients, and FIREFISH, a trial in infant onset (Type I) SMA patients.

About Prothena Corporation PLC

Prothena Corporation Public Limited Company is a global biotechnology company. The Company is focused on the discovery, development and commercialization of immunotherapies for the treatment of diseases that involve protein misfolding or cell adhesion. The Company’s clinical pipeline of antibody-based product candidates targets a range of indications, including Amyloid Light-chain (AL) amyloidosis (NEOD001), Parkinson’s disease and other related synucleinopathies (PRX002), and inflammatory diseases, including psoriasis and psoriatic arthritis (PRX003) and ATTR amyloidosis (PRX004). The Company has generated monoclonal antibodies that selectively bind to amyloidogenic (diseased) forms of the Transthyretin (TTR)-mediated amyloidosis (ATTR) protein. The Company’s pipeline also includes late discovery-stage programs for which the Company is testing the efficacy of antibodies in preclinical models of diseases related to amyloid or cell adhesion.

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