ImmunoGen (NASDAQ:IMGN) and Spero Therapeutics (NASDAQ:SPRO) are both small-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, earnings, analyst recommendations and profitability.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for ImmunoGen and Spero Therapeutics, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| ImmunoGen | 0 | 3 | 4 | 0 | 2.57 |
| Spero Therapeutics | 0 | 0 | 5 | 0 | 3.00 |
ImmunoGen presently has a consensus price target of $10.10, suggesting a potential upside of 34.31%. Spero Therapeutics has a consensus price target of $32.75, suggesting a potential upside of 153.29%. Given Spero Therapeutics' stronger consensus rating and higher probable upside, analysts plainly believe Spero Therapeutics is more favorable than ImmunoGen.
Earnings and Valuation
This table compares ImmunoGen and Spero Therapeutics' top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| ImmunoGen | $82.27 million | 18.26 | $-104,130,000.00 | ($0.70) | -10.74 |
| Spero Therapeutics | $18.15 million | 21.02 | $-60,920,000.00 | ($3.35) | -3.86 |
Spero Therapeutics has lower revenue, but higher earnings than ImmunoGen. ImmunoGen is trading at a lower price-to-earnings ratio than Spero Therapeutics, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares ImmunoGen and Spero Therapeutics' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| ImmunoGen | -77.65% | N/A | -26.98% |
| Spero Therapeutics | -768.15% | -93.43% | -72.17% |
Institutional and Insider Ownership
73.0% of ImmunoGen shares are owned by institutional investors. Comparatively, 57.6% of Spero Therapeutics shares are owned by institutional investors. 3.8% of ImmunoGen shares are owned by insiders. Comparatively, 17.4% of Spero Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Risk & Volatility
ImmunoGen has a beta of 1.65, meaning that its share price is 65% more volatile than the S&P 500. Comparatively, Spero Therapeutics has a beta of 1.67, meaning that its share price is 67% more volatile than the S&P 500.
Summary
Spero Therapeutics beats ImmunoGen on 8 of the 14 factors compared between the two stocks.
