Transition Therapeutics (NASDAQ: TTHI) and Peregrine Pharmaceuticals (NASDAQ:PPHM) are both healthcare companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, analyst recommendations, profitability and earnings.

Analyst Ratings

This is a summary of current recommendations for Transition Therapeutics and Peregrine Pharmaceuticals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Transition Therapeutics 0 0 0 0 N/A
Peregrine Pharmaceuticals 0 1 2 0 2.67

Peregrine Pharmaceuticals has a consensus target price of $5.25, suggesting a potential upside of 82.29%. Given Peregrine Pharmaceuticals’ higher probable upside, analysts clearly believe Peregrine Pharmaceuticals is more favorable than Transition Therapeutics.

Profitability

This table compares Transition Therapeutics and Peregrine Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Transition Therapeutics N/A -58.00% -47.29%
Peregrine Pharmaceuticals -48.86% -63.75% -25.31%

Valuation and Earnings

This table compares Transition Therapeutics and Peregrine Pharmaceuticals’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Transition Therapeutics N/A N/A N/A ($0.52) -2.92
Peregrine Pharmaceuticals $57.63 million 2.25 -$25.80 million ($0.93) -3.10

Transition Therapeutics has higher revenue, but lower earnings than Peregrine Pharmaceuticals. Peregrine Pharmaceuticals is trading at a lower price-to-earnings ratio than Transition Therapeutics, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Transition Therapeutics has a beta of 1.59, indicating that its stock price is 59% more volatile than the S&P 500. Comparatively, Peregrine Pharmaceuticals has a beta of 2.36, indicating that its stock price is 136% more volatile than the S&P 500.

Summary

Peregrine Pharmaceuticals beats Transition Therapeutics on 5 of the 8 factors compared between the two stocks.

Transition Therapeutics Company Profile

Transition Therapeutics Inc. is a product-focused biopharmaceutical company. The Company’s principal business activity is the researching and developing of therapeutic agents. The Company is developing therapeutics for central nervous system (CNS) and metabolic disease indications. The Company’s technologies are focused on the treatment of agitation and aggression in Alzheimer’s disease and diabetes. The Company’s subsidiary, Transition Therapeutics Ireland Limited (Transition Ireland), is developing two drug candidates: neuropsychiatric candidate ELND005 and androgen deficiency candidate TT701. The Company’s subsidiary, Waratah Pharmaceuticals Inc. (Waratah), is developing diabetes drug candidate TT401. The Company’s other two entities provide development services in support of the clinical and non-clinical activities of Transition Ireland and Waratah.

Peregrine Pharmaceuticals Company Profile

Peregrine Pharmaceuticals, Inc. (Peregrine) is a biopharmaceutical company. The Company operates through two segments: Peregrine, which is engaged in the research and development of monoclonal antibodies for the treatment of cancer, and Avid, which is engaged in providing contract manufacturing services for third party customers on a fee-for-service basis while also supporting its internal drug development efforts. Bavituximab is its lead immunotherapy candidate. Bavituximab is a monoclonal antibody that targets and binds to phosphatidylserine (PS), a immunosuppressive molecule that is usually located inside the membrane of healthy cells, but then flips and becomes exposed on the outside of cells in the tumor microenvironment, causing the tumor to evade immune detection. The Company’s subsidiary is Avid Bioservices, Inc. (Avid). Avid provides integrated current good manufacturing practices (cGMP) services from cell line development to commercial biomanufacturing.

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