RXi Pharmaceuticals Corporation (NASDAQ: RXII) and Immunomedics (NASDAQ:IMMU) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, institutional ownership, risk and dividends.

Volatility & Risk

RXi Pharmaceuticals Corporation has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500. Comparatively, Immunomedics has a beta of 1.67, indicating that its share price is 67% more volatile than the S&P 500.

Profitability

This table compares RXi Pharmaceuticals Corporation and Immunomedics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
RXi Pharmaceuticals Corporation N/A -155.48% -102.55%
Immunomedics -4,956.52% N/A -109.37%

Institutional & Insider Ownership

1.7% of RXi Pharmaceuticals Corporation shares are owned by institutional investors. Comparatively, 57.4% of Immunomedics shares are owned by institutional investors. 5.7% of RXi Pharmaceuticals Corporation shares are owned by insiders. Comparatively, 6.6% of Immunomedics shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares RXi Pharmaceuticals Corporation and Immunomedics’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
RXi Pharmaceuticals Corporation N/A N/A -$9.40 million ($1.32) -0.38
Immunomedics $3.09 million 422.07 -$71.33 million ($1.43) -8.20

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for RXi Pharmaceuticals Corporation and Immunomedics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RXi Pharmaceuticals Corporation 0 0 0 0 N/A
Immunomedics 0 0 3 0 3.00

RXi Pharmaceuticals Corporation presently has a consensus target price of $1.71, suggesting a potential upside of 236.68%. Immunomedics has a consensus target price of $15.50, suggesting a potential upside of 32.25%. Given RXi Pharmaceuticals Corporation’s higher possible upside, analysts plainly believe RXi Pharmaceuticals Corporation is more favorable than Immunomedics.

Summary

Immunomedics beats RXi Pharmaceuticals Corporation on 6 of the 11 factors compared between the two stocks.

RXi Pharmaceuticals Corporation Company Profile

RXi Pharmaceuticals Corporation is a clinical-stage ribonucleic acid (RNA) interference (RNAi) company developing therapeutics in dermatology and ophthalmology that address unmet medical needs. The Company’s development programs are based on its self-delivering RNAi (sd-rxRNA) platform and Samcyprone, a topical immunomodulator. Its clinical development programs include RXI-109, an sd-rxRNA, for the treatment of dermal and ocular scarring, and Samcyprone for the treatment of such disorders as warts, alopecia areata, non-malignant skin tumors and cutaneous metastases of melanoma. Its pipeline is focused on approximately three areas, including dermatology, ophthalmology and cosmetic product development. Its RNAi therapies are designed to silence, or down-regulate, the expression of a specific gene that may be over-expressed in a disease condition and its immunotherapy agent treats diseases by inducing, enhancing or suppressing an immune response.

Immunomedics Company Profile

Immunomedics, Inc. is a clinical-stage biopharmaceutical company. The Company is engaged in developing monoclonal antibody-based products for the targeted treatment of cancer, autoimmune disorders and other serious diseases. Its geographic segments include United States and Europe. Its technologies allow it to create humanized antibodies that can be used either alone in unlabeled or naked form, or conjugated with radioactive isotopes, chemotherapeutics, cytokines or toxins. It has a pipeline of eight clinical-stage product candidates. Its portfolio of investigational products includes antibody-drug conjugates (ADCs) that are designed to deliver a payload of a chemotherapeutic directly to the tumor, while the managing overall toxic effects that are found with conventional administration of these chemotherapy agents. Its ADCs are sacituzumab govitecan (IMMU-132) and labetuzumab govitecan (IMMU-130), which are in Phase II trials.

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