Redhill Biopharma (NASDAQ:RDHL) vs. Prelude Therapeutics (NASDAQ:PRLD) Financial Survey

Prelude Therapeutics (NASDAQ:PRLD) and Redhill Biopharma (NASDAQ:RDHL) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, earnings, risk, dividends, institutional ownership, analyst recommendations and profitability.

Volatility & Risk

Prelude Therapeutics has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500. Comparatively, Redhill Biopharma has a beta of 4.83, suggesting that its share price is 383% more volatile than the S&P 500.

Insider & Institutional Ownership

79.7% of Prelude Therapeutics shares are owned by institutional investors. Comparatively, 7.2% of Redhill Biopharma shares are owned by institutional investors. 63.9% of Prelude Therapeutics shares are owned by insiders. Comparatively, 6.8% of Redhill Biopharma shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Prelude Therapeutics and Redhill Biopharma, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Prelude Therapeutics	1	0	2	0	2.33
Redhill Biopharma	1	0	0	0	1.00

Prelude Therapeutics presently has a consensus target price of $4.00, indicating a potential upside of 197.40%. Given Prelude Therapeutics’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Prelude Therapeutics is more favorable than Redhill Biopharma.

Profitability

This table compares Prelude Therapeutics and Redhill Biopharma’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Prelude Therapeutics	N/A	-121.16%	-84.93%
Redhill Biopharma	N/A	N/A	N/A

Earnings & Valuation

This table compares Prelude Therapeutics and Redhill Biopharma”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Prelude Therapeutics	$7.00 million	12.08	-$127.17 million	($1.47)	-0.91
Redhill Biopharma	$9.55 million	0.57	-$8.27 million	$486.75	0.00

Redhill Biopharma has higher revenue and earnings than Prelude Therapeutics. Prelude Therapeutics is trading at a lower price-to-earnings ratio than Redhill Biopharma, indicating that it is currently the more affordable of the two stocks.

Summary

Redhill Biopharma beats Prelude Therapeutics on 7 of the 13 factors compared between the two stocks.

About Prelude Therapeutics

Prelude Therapeutics Incorporated, a clinical-stage biopharmaceutical company, focuses on the discovery and development of novel precision cancer medicines to underserved patients. It is developing PRT1419, a myeloid cell leukemia-1 inhibitor, which is in Phase 1 clinical trial for the treatment of selected relapsed/refractory myeloid or B-cell malignancies; PRT2527, a cyclin-dependent kinase, which is in Phase 1 clinical trial for the treatment of advanced solid tumors; PRT3645, a cyclin-dependent kinase 4/6 inhibitor, which is in Phase 1 clinical trial for the treatment of advanced and metastatic solid tumors; and PRT3879, a SMARCA2 selective protein degrader, which is in Phase 2/3 clinical trial for the treatment of advanced and metastatic solid tumors with loss of SMARCA4 due to truncating mutation and/or deletion. The company's CDK9 program is a regulator of cancer-promoting transcriptional programs, including MCL1, MYC and MYB. Prelude Therapeutics Incorporated was incorporated in 2016 and is based in Wilmington, Delaware.

About Redhill Biopharma

RedHill Biopharma Ltd., a specialty biopharmaceutical company, primarily focuses on gastrointestinal and infectious diseases. The company develops and commercializes Talicia for the treatment of H. pylori infection in adults; and Aemcolo for the treatment of travelers' diarrhea in adults. Its pipeline consists of five therapeutic candidates, which are in clinical development include opaganib for treating patients hospitalized with SARS-CoV-2 severe COVID-19 pneumonia, advanced unresectable cholangiocarcinoma, prostate cancer, and nuclear radiation protection; RHB-107 (upamostat) for treating outpatients infected with SARS-CoV-2 (COVID-19 disease) and advanced unresectable cholangiocarcinoma; RHB-104 for Crohn's disease; RHB-102 (Bekinda) for the treatment of acute gastroenteritis and gastritis, irritable bowel syndrome with diarrhea, and oncology support anti-emetic; and RHB-204 for pulmonary nontuberculous mycobacteria infections caused by mycobacterium avium complex. The company was incorporated in 2009 and is headquartered in Tel Aviv, Israel.