Nektar Therapeutics (NASDAQ: NKTR) and Prana Biotechnology (NASDAQ:PRAN) are both medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, dividends and valuation.

Valuation and Earnings

This table compares Nektar Therapeutics and Prana Biotechnology’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Nektar Therapeutics $133.10 million 27.33 -$154.13 million ($1.41) -16.50
Prana Biotechnology $2.54 million 1.53 -$5.52 million N/A N/A

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

Analyst Recommendations

This is a summary of recent recommendations for Nektar Therapeutics and Prana Biotechnology, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nektar Therapeutics 0 1 9 0 2.90
Prana Biotechnology 0 0 0 0 N/A

Nektar Therapeutics presently has a consensus target price of $27.11, indicating a potential upside of 16.51%. Given Nektar Therapeutics’ higher probable upside, analysts clearly believe Nektar Therapeutics is more favorable than Prana Biotechnology.

Risk and Volatility

Nektar Therapeutics has a beta of 1.48, indicating that its stock price is 48% more volatile than the S&P 500. Comparatively, Prana Biotechnology has a beta of -0.26, indicating that its stock price is 126% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Nektar Therapeutics -157.14% -1,223.34% -41.87%
Prana Biotechnology N/A N/A N/A

Insider & Institutional Ownership

95.1% of Nektar Therapeutics shares are owned by institutional investors. Comparatively, 1.8% of Prana Biotechnology shares are owned by institutional investors. 5.4% of Nektar Therapeutics shares are owned by insiders. Comparatively, 38.8% of Prana Biotechnology shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Nektar Therapeutics beats Prana Biotechnology on 6 of the 11 factors compared between the two stocks.

Nektar Therapeutics Company Profile

Nektar Therapeutics is a biopharmaceutical company that discovers and develops medicines in areas of high unmet medical need. The Company’s research and development pipeline of new investigational drugs includes treatments for cancer, auto-immune disease and chronic pain. It leverages its chemistry platform to discover and design new drug candidates. These drug candidates utilize its polymer conjugate technology platforms, which are designed to enable the development of new molecular entities that target known mechanisms of action. Its programs include Immuno-oncology (I-O), Immunology, Pain-NKTR-181 and Oncology-ONZEALD. It is developing medicines designed to directly or indirectly modulate the activity of key immune cells, such as cytotoxic T cells and Natural Killer (NK) cells, to increase their numbers and improve their function to recognize and attack cancer cells.

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.

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