Analyzing ImmunoGen (IMGN) and Heron Therapeutics (HRTX)
ImmunoGen (NASDAQ: IMGN) and Heron Therapeutics (NASDAQ:HRTX) are both small-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, earnings, institutional ownership, profitability and dividends.
Volatility & Risk
ImmunoGen has a beta of 2.37, suggesting that its share price is 137% more volatile than the S&P 500. Comparatively, Heron Therapeutics has a beta of 2.07, suggesting that its share price is 107% more volatile than the S&P 500.
This table compares ImmunoGen and Heron Therapeutics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares ImmunoGen and Heron Therapeutics’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|ImmunoGen||$83.41 million||8.79||-$69.45 million||($1.20)||-5.44|
|Heron Therapeutics||$13.42 million||61.32||-$174.14 million||($4.26)||-3.57|
ImmunoGen has higher revenue and earnings than Heron Therapeutics. ImmunoGen is trading at a lower price-to-earnings ratio than Heron Therapeutics, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
84.6% of ImmunoGen shares are held by institutional investors. 6.5% of ImmunoGen shares are held by company insiders. Comparatively, 20.3% of Heron Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This is a breakdown of current recommendations for ImmunoGen and Heron Therapeutics, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
ImmunoGen presently has a consensus target price of $8.05, indicating a potential upside of 23.28%. Heron Therapeutics has a consensus target price of $31.43, indicating a potential upside of 106.77%. Given Heron Therapeutics’ stronger consensus rating and higher probable upside, analysts clearly believe Heron Therapeutics is more favorable than ImmunoGen.
ImmunoGen beats Heron Therapeutics on 7 of the 13 factors compared between the two stocks.
ImmunoGen, Inc. is a clinical-stage biotechnology company that develops targeted cancer therapeutics using its antibody-drug conjugate (ADC) technology. The Company is engaged in the discovery of monoclonal antibody-based anticancer therapeutics. An ADC with the Company’s technology comprises an antibody that binds to a target found on tumor cells conjugated to one of its anti-cancer agents as a payload to kill the tumor cell once the ADC has bound to its target. Its product candidates include Mirvetuximab soravtansine; IMGN779; IMGN632; IMGN529, and Coltuximab ravtansine. Its portfolio is led by Mirvetuximab soravtansine, a first-in-class ADC targeting folate-receptor alpha (Fra). Its FORWARD II consists of cohorts assessing Mirvetuximab soravtansine in combination with, in separate doublets, Avastin (bevacizumab), pegylated liposomal doxorubicin (PLD), and carboplatin. The Company has developed tubulin-acting maytansinoid payload agents, which include DM1 and DM4.
About Heron Therapeutics
Heron Therapeutics, Inc. is a biotechnology company engaged in developing pharmaceutical products for patients suffering from cancer or pain. The Company’s product candidates include SUSTOL, HTX-019 and HTX-011. All of its product candidates utilize science and technology platforms, including its Biochronomer drug delivery technology. The Company’s SUSTOL (granisetron) injection, extended release is being developed for the prevention of both acute and delayed chemotherapy-induced nausea and vomiting (CINV) associated with moderately emetogenic chemotherapy (MEC) or highly emetogenic chemotherapy (HEC). HTX-019, which is an intravenous formulation of aprepitant, a neurokinin-1 (NK1) receptor antagonist, is being developed for the prevention of CINV. HTX-011, a long-acting formulation of the local anesthetic bupivacaine in a fixed-dose combination with the anti-inflammatory meloxicam, is being developed for the prevention of post-operative pain. HTX-011 is in Phase II clinical trials.
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