Rosetta Genomics (NASDAQ: ROSG) and Idera Pharmaceuticals (NASDAQ:IDRA) are both small-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, earnings, valuation and risk.

Analyst Recommendations

This is a summary of recent recommendations for Rosetta Genomics and Idera Pharmaceuticals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rosetta Genomics 0 0 1 0 3.00
Idera Pharmaceuticals 0 0 5 0 3.00

Rosetta Genomics currently has a consensus price target of $3.50, suggesting a potential upside of 446.88%. Idera Pharmaceuticals has a consensus price target of $5.40, suggesting a potential upside of 171.36%. Given Rosetta Genomics’ higher probable upside, analysts clearly believe Rosetta Genomics is more favorable than Idera Pharmaceuticals.

Insider & Institutional Ownership

8.3% of Rosetta Genomics shares are held by institutional investors. Comparatively, 24.2% of Idera Pharmaceuticals shares are held by institutional investors. 12.4% of Idera Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Rosetta Genomics has a beta of 0.31, indicating that its stock price is 69% less volatile than the S&P 500. Comparatively, Idera Pharmaceuticals has a beta of 2.17, indicating that its stock price is 117% more volatile than the S&P 500.

Profitability

This table compares Rosetta Genomics and Idera Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rosetta Genomics N/A N/A N/A
Idera Pharmaceuticals -313.78% -60.80% -55.07%

Valuation & Earnings

This table compares Rosetta Genomics and Idera Pharmaceuticals’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rosetta Genomics $9.23 million 0.37 -$16.23 million ($11.04) -0.06
Idera Pharmaceuticals $16.20 million 23.94 -$38.38 million ($0.33) -6.03

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

Summary

Idera Pharmaceuticals beats Rosetta Genomics on 7 of the 12 factors compared between the two stocks.

Rosetta Genomics Company Profile

Rosetta Genomics Ltd. is engaged in developing and commercializing new diagnostic tests based on various genomics markers, including deoxyribonucleic acid (DNA), micro ribonucleic acid (microRNA) and protein biomarkers and using various technologies, including, Quantitative polymerase chain reaction (qPCR), microarrays, Next Generation Sequencing (NGS) and Fluorescence In Situ Hybridization (FISH). It is marketing and selling over four diagnostic tests based on its microRNA technologies, which include RosettaGX Cancer Origin, mi-LUNG, mi-KIDNEY and RosettaGX Reveal. Its therapeutic pipeline consists of the projects, which include Rimonim Consortium and Magneton Project. It focuses on developing diagnostic assay, RosettaGX Reveal V2. It is also focusing on developing Bladder cancer risk stratification. Its PersonalizeDx is focused on the detection of genomic changes through FISH technology, which helps to detect cancer.

Idera Pharmaceuticals Company Profile

Idera Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company focused on the discovery, development and commercialization of therapeutics for oncology and rare diseases. The Company utilizes two drug discovery technology platforms to design and develop drug candidates, which include Toll-like receptor (TLR) targeting technology and third-generation antisense (3GA) technology. Using TLR technology, the Company designs synthetic oligonucleotide-based drug candidates to act by modulating the activity of specific TLRs. Using its 3GA technology, the Company is developing drug candidates to turn off the messenger ribo nucleic acid (mRNA) associated with disease causing genes. The Company’s drug candidates include IMO-8400, IMO-2125 and IMO-9200. The Company has designed TLR antagonists and agonists to act by modulating the activity of targeted TLRs. It is developing its 3GA technology to turn off the mRNA associated with disease causing genes.

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