Insmed (NASDAQ:INSM) and Prima BioMed (NASDAQ:IMMP) Critical Analysis

Insmed (NASDAQ:INSM) and Prima BioMed (NASDAQ:IMMP) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.

Volatility and Risk

Insmed has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500. Comparatively, Prima BioMed has a beta of 1.89, indicating that its stock price is 89% more volatile than the S&P 500.

Insider and Institutional Ownership

2.3% of Prima BioMed shares are held by institutional investors. 3.0% of Insmed shares are held by company insiders. Comparatively, 3.1% of Prima BioMed shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Insmed and Prima BioMed”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Insmed	$447.02 million	89.16	-$913.77 million	($6.19)	-30.19
Prima BioMed	N/A	N/A	-$39.78 million	N/A	N/A

Prima BioMed has lower revenue, but higher earnings than Insmed.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Insmed and Prima BioMed, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Insmed	1	1	19	0	2.86
Prima BioMed	1	0	1	0	2.00

Insmed currently has a consensus target price of $173.29, indicating a potential downside of 7.27%. Prima BioMed has a consensus target price of $7.00, indicating a potential upside of 302.30%. Given Prima BioMed’s higher possible upside, analysts clearly believe Prima BioMed is more favorable than Insmed.

Profitability

This table compares Insmed and Prima BioMed’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Insmed	-259.82%	-195.37%	-49.49%
Prima BioMed	N/A	N/A	N/A

Summary

Prima BioMed beats Insmed on 8 of the 11 factors compared between the two stocks.

About Insmed

Insmed Incorporated is a global biopharmaceutical company on a mission to transform the lives of patients with serious and rare diseases. Insmed’s first commercial product is ARIKAYCE® (amikacin liposome inhalation suspension), which is approved in the United States for the treatment of Mycobacterium avium complex (MAC) lung disease as part of a combination antibacterial drug regimen for adult patients with limited or no alternative treatment options. MAC lung disease is a rare and often chronic infection that can cause irreversible lung damage and can be fatal. Insmed’s earlier-stage clinical pipeline includes INS1007, a novel oral reversible inhibitor of dipeptidyl peptidase 1 with therapeutic potential in non-cystic fibrosis bronchiectasis and other inflammatory diseases, and INS1009, an inhaled formulation of a treprostinil prodrug that may offer a differentiated product profile for rare pulmonary disorders, including pulmonary arterial hypertension.

About Prima BioMed

Immutep Limited, a clinical-stage biotechnology company, engages in developing novel LAG-3 Immunotherapy for cancer and autoimmune diseases. The company is involved in advancing therapeutics related to Lymphocyte Activation Gene-3 (LAG-3), a cell surface molecule that plays a vital role in regulating the immune system. Its LAG-3 immunotherapies are designed to harness and strengthen the power of patients' immune systems to fight cancer and autoimmune disease. Its lead product candidate is eftilagimod alpha (efti or IMP321) for the treatment of different types of cancers. The trials that efi is being evaluated in include TACTI-002, a Phase II clinical trial for the treatment of head and neck squamous cell carcinoma (HNSCC) and non-small cell lung cancer (NSCLC); TACTI-003, a Phase IIb clinical trial to treat HNSCC; and INSIGHT-003, a Phase I clinical trial for the treatment of NSCLC, as well as INSIGHT-005, a Phase I/IIa clinical trial to treat solid tumors. In addition, it offers IMP761, an agonist of lymphocyte activation gene 3 for autoimmune disease; IMP701, an antagonist antibody that acts to stimulate T cell proliferation in cancer patients; and IMP731, a depleting antibody that removes T cells involved in autoimmunity. The company has collaboration agreements with GlaxoSmithKline, Novartis, CYTLIMIC Inc., Merck & Co., Inc., Institute of Clinical Cancer Research, Merck KGaA, and EOC Pharma. The company was formerly known as Prima BioMed Ltd and changed its name to Immutep Limited in November 2017. The company was incorporated in 1987 and is headquartered in Sydney, Australia.