Prana Biotechnology (NASDAQ: PRAN) and Pluristem Therapeutics (NASDAQ:PSTI) are both small-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, risk, analyst recommendations and profitability.

Profitability

This table compares Prana Biotechnology and Pluristem Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Prana Biotechnology N/A N/A N/A
Pluristem Therapeutics N/A -100.14% -80.04%

Analyst Ratings

This is a breakdown of recent ratings for Prana Biotechnology and Pluristem Therapeutics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Prana Biotechnology 0 0 1 0 3.00
Pluristem Therapeutics 0 0 4 0 3.00

Prana Biotechnology presently has a consensus price target of $4.00, suggesting a potential upside of 23.08%. Pluristem Therapeutics has a consensus price target of $3.83, suggesting a potential upside of 166.20%. Given Pluristem Therapeutics’ higher probable upside, analysts clearly believe Pluristem Therapeutics is more favorable than Prana Biotechnology.

Risk and Volatility

Prana Biotechnology has a beta of -0.11, meaning that its share price is 111% less volatile than the S&P 500. Comparatively, Pluristem Therapeutics has a beta of 0.09, meaning that its share price is 91% less volatile than the S&P 500.

Valuation & Earnings

This table compares Prana Biotechnology and Pluristem Therapeutics’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Prana Biotechnology $2.37 million 12.20 -$5.68 million N/A N/A
Pluristem Therapeutics $2.85 million 54.62 -$27.81 million ($0.32) -4.50

Prana Biotechnology has higher earnings, but lower revenue than Pluristem Therapeutics.

Institutional & Insider Ownership

2.0% of Prana Biotechnology shares are owned by institutional investors. Comparatively, 4.3% of Pluristem Therapeutics shares are owned by institutional investors. 38.8% of Prana Biotechnology shares are owned by company insiders. Comparatively, 7.0% of Pluristem Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Pluristem Therapeutics beats Prana Biotechnology on 6 of the 10 factors compared between the two stocks.

Prana Biotechnology Company Profile

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.

Pluristem Therapeutics Company Profile

Pluristem Therapeutics Inc. is a developer of placenta-based cell therapy product candidates for the treatment of multiple ischemic, inflammatory and hematologic conditions. The Company’s lead indications are critical limb ischemia (CLI), recovery after surgery for femoral neck fracture and acute radiation syndrome. Its operations are focused on the research, development, clinical trials and manufacturing of cell therapeutics and related technologies. The Company’s products include PLX-PAD and PLX R18. The Company’s PLX cells are adherent stromal cells (ASCs) that are expanded using a three dimensional (3D) process. The system utilizes a synthetic scaffold to create an artificial 3D environment where placental-derived stromal cells can grow. The Company’s PLX products are administered using a standard needle and syringe. The Company’s PLX products are in clinical-stage development for multiple indications, such as cardiovascular, orthopedic, pulmonary and women’s health diseases.

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