Five Prime Therapeutics (NASDAQ: FPRX) and Intercept Pharmaceuticals (NASDAQ:ICPT) are both small-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, risk, valuation, institutional ownership and dividends.

Analyst Recommendations

This is a summary of current recommendations and price targets for Five Prime Therapeutics and Intercept Pharmaceuticals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Five Prime Therapeutics 0 0 7 0 3.00
Intercept Pharmaceuticals 2 9 8 0 2.32

Five Prime Therapeutics currently has a consensus price target of $56.00, indicating a potential upside of 24.83%. Intercept Pharmaceuticals has a consensus price target of $153.85, indicating a potential upside of 149.63%. Given Intercept Pharmaceuticals’ higher probable upside, analysts clearly believe Intercept Pharmaceuticals is more favorable than Five Prime Therapeutics.

Volatility & Risk

Five Prime Therapeutics has a beta of 4.19, indicating that its share price is 319% more volatile than the S&P 500. Comparatively, Intercept Pharmaceuticals has a beta of -2.1, indicating that its share price is 310% less volatile than the S&P 500.

Institutional and Insider Ownership

84.0% of Five Prime Therapeutics shares are held by institutional investors. Comparatively, 82.8% of Intercept Pharmaceuticals shares are held by institutional investors. 6.5% of Five Prime Therapeutics shares are held by company insiders. Comparatively, 9.2% of Intercept Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Five Prime Therapeutics and Intercept Pharmaceuticals’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Five Prime Therapeutics $32.90 million 38.16 -$133.09 million ($4.24) -10.58
Intercept Pharmaceuticals $70.92 million 21.81 -$361.26 million ($15.50) -3.98

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

Profitability

This table compares Five Prime Therapeutics and Intercept Pharmaceuticals’ 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%
Intercept Pharmaceuticals -543.35% -135.24% -54.37%

Summary

Five Prime Therapeutics beats Intercept Pharmaceuticals on 9 of the 13 factors compared between the two stocks.

About Five Prime Therapeutics

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.

About Intercept Pharmaceuticals

Intercept Pharmaceuticals, Inc. is a biopharmaceutical company. The Company is focused on the development and commercialization of therapeutics to treat non-viral, progressive liver diseases. The Company’s product candidates have the potential to treat orphan and more prevalent diseases for which there are limited therapeutic solutions. The Company’s product candidate, obeticholic acid (OCA), is a bile acid analog, a chemical substance that has a structure based on a naturally occurring human bile acid that selectively binds to and activates the farnesoid X receptor (FXR). In addition to OCA, it is developing other bile acid analog compounds targeting FXR and a second dedicated bile acid receptor called TGR5, which is a target of interest for the treatment of type 2 diabetes and other gastrointestinal indications. The Company is also developing other products INT-767 for the treatment of fibrosis and INT-777 for the treatment of type 2 diabetes.

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