Contrasting Orexigen Therapeutics (OREX) and Five Prime Therapeutics (FPRX)
Orexigen Therapeutics (NASDAQ: OREX) and Five Prime Therapeutics (NASDAQ:FPRX) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.
This table compares Orexigen Therapeutics and Five Prime Therapeutics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Five Prime Therapeutics||-356.39%||-31.78%||-27.55%|
Institutional and Insider Ownership
39.7% of Orexigen Therapeutics shares are held by institutional investors. Comparatively, 84.1% of Five Prime Therapeutics shares are held by institutional investors. 13.3% of Orexigen Therapeutics shares are held by insiders. Comparatively, 6.5% of Five Prime Therapeutics shares are held by 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 summary of current ratings and target prices for Orexigen Therapeutics and Five Prime Therapeutics, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Five Prime Therapeutics||0||1||7||0||2.88|
Five Prime Therapeutics has a consensus price target of $57.50, indicating a potential upside of 32.12%. Given Five Prime Therapeutics’ higher probable upside, analysts clearly believe Five Prime Therapeutics is more favorable than Orexigen Therapeutics.
Valuation & Earnings
This table compares Orexigen Therapeutics and Five Prime Therapeutics’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Orexigen Therapeutics||$63.39 million||0.50||-$163.64 million||($7.24)||-0.28|
|Five Prime Therapeutics||$32.90 million||37.02||-$133.09 million||($4.24)||-10.26|
Five Prime Therapeutics has higher revenue, but lower earnings than Orexigen Therapeutics. Five Prime Therapeutics is trading at a lower price-to-earnings ratio than Orexigen Therapeutics, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Orexigen Therapeutics has a beta of 2.35, suggesting that its share price is 135% more volatile than the S&P 500. Comparatively, Five Prime Therapeutics has a beta of 4.19, suggesting that its share price is 319% more volatile than the S&P 500.
Five Prime Therapeutics beats Orexigen Therapeutics on 9 of the 12 factors compared between the two stocks.
Orexigen Therapeutics Company Profile
Orexigen Therapeutics, Inc. is a biopharmaceutical company. The Company is focused on the treatment of obesity. The Company’s product, Contrave, is approved in the United States by the United States Food and Drug Administration as an adjunct to a reduced-calorie diet and increased physical activity for chronic weight management in adults with an initial body mass index (BMI) of 30 kilograms per square meter or greater (obese) or 27 kilograms per square meter or greater (overweight) in the presence of a weight-related comorbid condition. Contrave is a combination of generic drug components, each of which has received regulatory approval for other indications and has been commercialized in the United States and in a range of member countries of the European Union. Contrave regulates appetite and energy expenditure through central nervous system (CNS) activity. Contrave is a fixed dose combination of bupropion hydrochloride (HCl) extended release (ER) and naltrexone HCl ER.
Five Prime Therapeutics Company Profile
Five Prime Therapeutics, Inc. is a clinical-stage biotechnology company focused on discovering and developing protein therapeutics. The Company’s product candidates include Cabiralizumab (FPA008), which is an antibody that inhibits colony stimulating factor-1 receptor, that it is studying in clinical trials as a monotherapy in pigmented villonodular synovitis, and in multiple cancers in combination with programmed-death 1 immune checkpoint inhibitor, Opdivo; FPA144, which is an antibody that inhibits fibroblast growth factor receptor 2b, that it is initially developing to treat patients with gastric (stomach) cancer and is in a Phase I clinical trial, and FP-1039, which is a fusion protein that traps and neutralizes cancer-promoting fibroblast growth factors, involved in cancer cell proliferation and new blood vessel formation and is in Phase Ib clinical development to treat patients with malignant pleural mesothelioma. Its preclinical programs include FPA150, FPA154 and FPT155.
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