Head to Head Analysis: Prometheus Biosciences (NASDAQ:RXDX) versus NRx Pharmaceuticals (NASDAQ:NRXP)

Prometheus Biosciences (NASDAQ:RXDXGet Rating) and NRx Pharmaceuticals (NASDAQ:NRXPGet Rating) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, valuation, profitability and risk.

Earnings and Valuation

This table compares Prometheus Biosciences and NRx Pharmaceuticals’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Prometheus Biosciences $3.13 million 343.80 -$90.19 million ($3.63) -7.58
NRx Pharmaceuticals N/A N/A -$93.06 million ($7.33) -0.18

Prometheus Biosciences has higher revenue and earnings than NRx Pharmaceuticals. Prometheus Biosciences is trading at a lower price-to-earnings ratio than NRx Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Prometheus Biosciences and NRx Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Prometheus Biosciences -2,882.55% -33.41% -30.32%
NRx Pharmaceuticals N/A -1,981.15% -261.88%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Prometheus Biosciences and NRx Pharmaceuticals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Prometheus Biosciences 0 0 7 0 3.00
NRx Pharmaceuticals 0 0 0 0 N/A

Prometheus Biosciences currently has a consensus price target of $51.86, indicating a potential upside of 88.43%. Given Prometheus Biosciences’ higher possible upside, equities research analysts clearly believe Prometheus Biosciences is more favorable than NRx Pharmaceuticals.

Institutional and Insider Ownership

65.4% of Prometheus Biosciences shares are owned by institutional investors. Comparatively, 3.9% of NRx Pharmaceuticals shares are owned by institutional investors. 13.1% of Prometheus Biosciences shares are owned by company insiders. Comparatively, 18.5% of NRx Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

Prometheus Biosciences has a beta of 2.63, suggesting that its share price is 163% more volatile than the S&P 500. Comparatively, NRx Pharmaceuticals has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500.

Summary

Prometheus Biosciences beats NRx Pharmaceuticals on 9 of the 12 factors compared between the two stocks.

About Prometheus Biosciences (Get Rating)

Prometheus Biosciences, Inc., a biopharmaceutical company, engages in the discovery, development, and commercialization of novel therapeutics and companion diagnostics products for the treatment of inflammatory bowel diseases (IBD). Its lead product includes PRA023, a humanized IgG1 monoclonal antibody (mAb), which is in Phase IIa clinical trial for the treatment of ulcerative colitis and Crohn's disease, as well as systemic sclerosis-associated interstitial lung disease. The company also develops PR600, an anti-tumor necrosis factor mAb for IBD; PR300, a G-protein coupled receptor modulator small molecule for IBD; PR1100, an anti-cytokine receptor mAb for IBD and other immune-mediated diseases; PR1800, an anti-chemokine mAb for IBD; and PR2100, an anti-inflammatory cytokine mAb for IBD. It has a diagnostics development and collaboration agreement with Takeda Pharmaceutical Company Limited; co-development and manufacturing agreement with Dr. Falk Pharma GmbH; license agreement with Cedars-Sinai Medical Center; and strategic collaboration with Millennium Pharmaceuticals, Inc. The company was formerly known as Precision IBD, Inc. and changed its name to Prometheus Biosciences, Inc. in October 2019. Prometheus Biosciences, Inc. was incorporated in 2016 and is headquartered in San Diego, California.

About NRx Pharmaceuticals (Get Rating)

NRX Pharmaceuticals, Inc., a clinical-stage pharmaceutical company, develops novel therapeutics for the treatment of central nervous system disorders and life-threatening pulmonary diseases. Its products include ZYESAMI, an investigational drug that has completed a Phase IIb/III clinical study for COVID-19 related respiratory failure; and NRX-100 and NRX-101 oral therapeutics for the treatment of bipolar depression in patients with acute suicidal behavior/ideation and sub-acute suicidal ideation and behavior. The company was founded in 2015 and is based in Wilmington, Delaware.

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