ProQR Therapeutics (NASDAQ:PRQR) and Avid Bioservices (NASDAQ:CDMO) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, risk and valuation.
Volatility & Risk
ProQR Therapeutics has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500. Comparatively, Avid Bioservices has a beta of 2.36, suggesting that its stock price is 136% more volatile than the S&P 500.
Valuation and Earnings
This table compares ProQR Therapeutics and Avid Bioservices' gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| ProQR Therapeutics | N/A | N/A | $-63,560,000.00 | ($1.55) | -4.02 |
| Avid Bioservices | $59.70 million | 19.76 | $-10,470,000.00 | ($0.27) | -71.81 |
Avid Bioservices has higher revenue and earnings than ProQR Therapeutics. Avid Bioservices is trading at a lower price-to-earnings ratio than ProQR Therapeutics, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent recommendations for ProQR Therapeutics and Avid Bioservices, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| ProQR Therapeutics | 0 | 0 | 5 | 0 | 3.00 |
| Avid Bioservices | 0 | 0 | 3 | 0 | 3.00 |
ProQR Therapeutics currently has a consensus price target of $32.6667, indicating a potential upside of 424.34%. Avid Bioservices has a consensus price target of $17.3333, indicating a potential downside of 10.61%. Given ProQR Therapeutics' higher possible upside, equities research analysts clearly believe ProQR Therapeutics is more favorable than Avid Bioservices.
Institutional & Insider Ownership
55.9% of ProQR Therapeutics shares are held by institutional investors. Comparatively, 58.2% of Avid Bioservices shares are held by institutional investors. 1.7% of Avid Bioservices shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares ProQR Therapeutics and Avid Bioservices' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| ProQR Therapeutics | N/A | -62.92% | -47.69% |
| Avid Bioservices | 0.20% | 0.31% | 0.13% |
Summary
Avid Bioservices beats ProQR Therapeutics on 9 of the 12 factors compared between the two stocks.
