Critical Survey: Peregrine Pharmaceuticals (PPHM) vs. Strongbridge Biopharma (SBBP)
Peregrine Pharmaceuticals (NASDAQ: PPHM) and Strongbridge Biopharma (NASDAQ:SBBP) are both small-cap healthcare companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, risk, earnings and institutional ownership.
This table compares Peregrine Pharmaceuticals and Strongbridge Biopharma’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings for Peregrine Pharmaceuticals and Strongbridge Biopharma, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Peregrine Pharmaceuticals presently has a consensus price target of $10.00, indicating a potential upside of 143.90%. Strongbridge Biopharma has a consensus price target of $14.67, indicating a potential upside of 94.26%. Given Peregrine Pharmaceuticals’ higher probable upside, equities analysts plainly believe Peregrine Pharmaceuticals is more favorable than Strongbridge Biopharma.
Institutional & Insider Ownership
18.7% of Peregrine Pharmaceuticals shares are owned by institutional investors. Comparatively, 57.5% of Strongbridge Biopharma shares are owned by institutional investors. 2.5% of Peregrine Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Peregrine Pharmaceuticals and Strongbridge Biopharma’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Peregrine Pharmaceuticals||$57.63 million||3.22||-$28.15 million||($0.70)||-5.86|
|Strongbridge Biopharma||N/A||N/A||-$48.59 million||($3.38)||-2.23|
Peregrine Pharmaceuticals has higher revenue and earnings than Strongbridge Biopharma. Peregrine Pharmaceuticals is trading at a lower price-to-earnings ratio than Strongbridge Biopharma, indicating that it is currently the more affordable of the two stocks.
Peregrine Pharmaceuticals beats Strongbridge Biopharma on 7 of the 11 factors compared between the two stocks.
About Peregrine Pharmaceuticals
Peregrine Pharmaceuticals, Inc. (Peregrine) is a biopharmaceutical company. The Company operates through two segments: Peregrine, which is engaged in the research and development of monoclonal antibodies for the treatment of cancer, and Avid, which is engaged in providing contract manufacturing services for third party customers on a fee-for-service basis while also supporting its internal drug development efforts. Bavituximab is its lead immunotherapy candidate. Bavituximab is a monoclonal antibody that targets and binds to phosphatidylserine (PS), a immunosuppressive molecule that is usually located inside the membrane of healthy cells, but then flips and becomes exposed on the outside of cells in the tumor microenvironment, causing the tumor to evade immune detection. The Company’s subsidiary is Avid Bioservices, Inc. (Avid). Avid provides integrated current good manufacturing practices (cGMP) services from cell line development to commercial biomanufacturing.
About Strongbridge Biopharma
Strongbridge Biopharma plc is a global commercial-stage biopharmaceutical company. The Company is focused on the development and commercialization of therapies for a range of diseases. The Company’s commercial product, KEVEYIS (dichlorphenamide), is indicated for the treatment of hyperkalemic, hypokalemic and related variants of primary periodic paralysis. The United States Food and Drug Administration (FDA) has granted orphan drug designation for KEVEYIS. The Company has a clinical-stage pipeline of therapies for endocrine diseases. The Company’s lead compounds include COR-003 (levoketoconazole), a cortisol synthesis inhibitor, and COR-005 (veldoreotide), a somatostatin analog (SSA). The Company is studying COR-003 for the treatment of endogenous Cushing’s syndrome. It is investigating COR-005 for the treatment of acromegaly. Both COR-003 and COR-005 have received orphan designation from the FDA and the European Medicines Agency (EMA).
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