PTC Therapeutics (NASDAQ: PTCT) and Sierra Oncology (NASDAQ:SRRA) are both small-cap healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.
This table compares PTC Therapeutics and Sierra Oncology’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
91.9% of PTC Therapeutics shares are held by institutional investors. Comparatively, 59.0% of Sierra Oncology shares are held by institutional investors. 8.1% of PTC Therapeutics shares are held by insiders. Comparatively, 5.7% of Sierra Oncology shares are held 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.
Valuation and Earnings
This table compares PTC Therapeutics and Sierra Oncology’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|PTC Therapeutics||$194.39 million||6.14||-$142.11 million||($0.96)||-29.99|
|Sierra Oncology||N/A||N/A||-$42.01 million||($0.85)||-2.91|
Sierra Oncology has lower revenue, but higher earnings than PTC Therapeutics. PTC Therapeutics is trading at a lower price-to-earnings ratio than Sierra Oncology, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
PTC Therapeutics has a beta of 1.71, suggesting that its share price is 71% more volatile than the S&P 500. Comparatively, Sierra Oncology has a beta of 2.29, suggesting that its share price is 129% more volatile than the S&P 500.
This is a summary of current ratings and target prices for PTC Therapeutics and Sierra Oncology, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
PTC Therapeutics currently has a consensus price target of $22.33, indicating a potential downside of 22.43%. Given PTC Therapeutics’ higher possible upside, equities analysts clearly believe PTC Therapeutics is more favorable than Sierra Oncology.
PTC Therapeutics Company Profile
PTC Therapeutics, Inc. is a biopharmaceutical company. The Company is focused on the discovery, development and commercialization of medicines using its expertise in ribonucleic acid (RNA) biology. Its product pipeline includes Ataluren (Translarna), PTC596 and RG7916. Its product candidate, ataluren, is an orally administered small-molecule compound for the treatment of patients with genetic disorders due to a nonsense mutation. Ataluren is in clinical development for the treatment of Duchenne muscular dystrophy caused by a nonsense mutation (nmDMD) and cystic fibrosis caused by a nonsense mutation (nmCF). PTC596 is an orally active small molecule that targets tumor stem cell populations by reducing the function, activity and amount of BMI1. RG7916 is an investigational oral therapeutic, which is in two clinical studies: SUNFISH, a trial in childhood onset (Type II/III) spinal muscular atrophy (SMA) patients, and FIREFISH, a trial in infant onset (Type I) SMA patients.
Sierra Oncology Company Profile
Sierra Oncology, Inc., formerly ProNAi Therapeutics, Inc., is a clinical-stage drug development company. The Company’s lead drug candidate, SRA737, is orally bioavailable small molecule inhibitor of Checkpoint kinase 1 (Chk1), a key cell cycle checkpoint and central regulator of the deoxyribonucleic acid (DNA) Damage Response (DDR) network. SRA737 is being investigated in approximately two Phase I clinical trials in patients with advanced cancer. Sierra Oncology is also advancing SRA141, an orally bioavailable small molecule inhibitor of the cell division cycle 7 kinase (Cdc7) kinase undergoing preclinical development. Sierra is building a range of pipeline of various oncology assets against targets at the edge of cancer biology. The Company’s SRA737 and SRA141 target the DDR network, a scientifically approach with far-reaching potential across oncology. SRA141 is an orally available small molecule inhibitor of Cdc7.
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