Proteon Therapeutics (NASDAQ: PRTO) and Auris Medical (NASDAQ:EARS) are both small-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, analyst recommendations, valuation and institutional ownership.

Profitability

This table compares Proteon Therapeutics and Auris Medical’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Proteon Therapeutics N/A -105.58% -77.60%
Auris Medical N/A -343.01% -80.81%

Analyst Recommendations

This is a summary of recent recommendations for Proteon Therapeutics and Auris Medical, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Proteon Therapeutics 0 4 1 0 2.20
Auris Medical 0 0 2 0 3.00

Proteon Therapeutics currently has a consensus price target of $3.43, indicating a potential upside of 40.14%. Auris Medical has a consensus price target of $4.50, indicating a potential upside of 782.35%. Given Auris Medical’s stronger consensus rating and higher possible upside, analysts plainly believe Auris Medical is more favorable than Proteon Therapeutics.

Volatility and Risk

Proteon Therapeutics has a beta of 1.62, meaning that its share price is 62% more volatile than the S&P 500. Comparatively, Auris Medical has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500.

Valuation and Earnings

This table compares Proteon Therapeutics and Auris Medical’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Proteon Therapeutics N/A N/A -$28.52 million ($2.22) -1.10
Auris Medical N/A N/A -$31.13 million ($0.66) -0.77

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

Institutional and Insider Ownership

50.1% of Proteon Therapeutics shares are owned by institutional investors. Comparatively, 25.2% of Auris Medical shares are owned by institutional investors. 36.3% of Proteon Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Proteon Therapeutics beats Auris Medical on 6 of the 11 factors compared between the two stocks.

Proteon Therapeutics Company Profile

Proteon Therapeutics, Inc. is a late-stage biopharmaceutical company, which focuses on the development of pharmaceuticals to address the needs of patients with renal and vascular disease. The Company is involved in research and development activities. The Company’s product candidate, product candidate, vonapanitase, formerly PRT-201, is a recombinant human elastase that it is developing to manage vascular access failure in patients with chronic kidney disease undergoing or planning for hemodialysis, a lifesaving treatment that cannot be conducted without a functioning vascular access. The Company has completed Phase II trial of vonapanitase in patients undergoing creation of an arteriovenous fistula (AVF). The Company initiated the first of two Phase III trials, PATENCY-1, for vonapanitase in radiocephalic AVFs. Its vonapanitase product candidate is a recombinant human elastase under development as a treatment to prevent AVF and arteriovenous graft (AVG) patency loss.

Auris Medical Company Profile

Auris Medical Holding AG is a holding and clinical-stage biopharmaceutical company focused on the development of products for the treatment of inner ear disorders. Its advanced product candidate, AM-101, is in Phase III clinical development for acute inner ear tinnitus under a special protocol assessment (SPA) from the United States Food and Drug Administration. Its second product candidate, AM-111, is being developed for the treatment of acute sensorineural hearing loss (ASNHL). It intends to conduct over two pivotal Phase III trials in the treatment of idiopathic sudden SNHL (ISSNHL), titled Acute Inner Ear Hearing Loss (HEALOS) and Acute Sudden Sensorineural Hearing Loss Treatment (ASSENT). AM-111 received orphan drug designation for the treatment of ASNHL from the United States Food and Drug Administration, and the European Union agency. It intends to conduct a Phase II trial in the treatment of surgery-induced hearing loss (REACH).

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