Protagonist Therapeutics (NASDAQ:PTGX) and Hutchison China MediTech (NASDAQ:HCM) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, dividends and analyst recommendations.
Insider and Institutional Ownership
97.5% of Protagonist Therapeutics shares are held by institutional investors. Comparatively, 33.5% of Hutchison China MediTech shares are held by institutional investors. 14.2% of Protagonist Therapeutics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares Protagonist Therapeutics and Hutchison China MediTech's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Protagonist Therapeutics | -252.03% | -54.00% | -35.38% |
| Hutchison China MediTech | N/A | N/A | N/A |
Analyst Ratings
This is a breakdown of recent recommendations for Protagonist Therapeutics and Hutchison China MediTech, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Protagonist Therapeutics | 0 | 0 | 7 | 0 | 3.00 |
| Hutchison China MediTech | 0 | 0 | 2 | 0 | 3.00 |
Protagonist Therapeutics currently has a consensus target price of $38.00, indicating a potential upside of 44.93%. Hutchison China MediTech has a consensus target price of $40.00, indicating a potential upside of 36.52%. Given Protagonist Therapeutics' higher probable upside, analysts plainly believe Protagonist Therapeutics is more favorable than Hutchison China MediTech.
Risk & Volatility
Protagonist Therapeutics has a beta of 1.56, suggesting that its share price is 56% more volatile than the S&P 500. Comparatively, Hutchison China MediTech has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500.
Earnings & Valuation
This table compares Protagonist Therapeutics and Hutchison China MediTech's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Protagonist Therapeutics | $230,000.00 | 4,994.11 | $-77,190,000.00 | ($2.98) | -8.80 |
| Hutchison China MediTech | $204.89 million | 20.81 | $-106,020,000.00 | ($0.80) | -36.63 |
Protagonist Therapeutics has higher earnings, but lower revenue than Hutchison China MediTech. Hutchison China MediTech is trading at a lower price-to-earnings ratio than Protagonist Therapeutics, indicating that it is currently the more affordable of the two stocks.
Summary
Protagonist Therapeutics beats Hutchison China MediTech on 8 of the 13 factors compared between the two stocks.
