Praxis Precision Medicines (NASDAQ:PRAX – Get Free Report) and XOMA (NASDAQ:XOMA – Get Free Report) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitability.
Institutional and Insider Ownership
67.8% of Praxis Precision Medicines shares are owned by institutional investors. Comparatively, 95.9% of XOMA shares are owned by institutional investors. 2.7% of Praxis Precision Medicines shares are owned by insiders. Comparatively, 7.2% of XOMA shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Praxis Precision Medicines and XOMA’s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Praxis Precision Medicines | $2.45 million | 380.89 | -$123.28 million | ($23.66) | -2.31 |
| XOMA | $4.76 million | 60.60 | -$40.83 million | ($4.04) | -6.13 |
Volatility & Risk
Praxis Precision Medicines has a beta of 2.87, indicating that its stock price is 187% more volatile than the S&P 500. Comparatively, XOMA has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Praxis Precision Medicines and XOMA, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Praxis Precision Medicines | 0 | 1 | 4 | 0 | 2.80 |
| XOMA | 0 | 0 | 3 | 0 | 3.00 |
Praxis Precision Medicines presently has a consensus target price of $105.80, indicating a potential upside of 93.99%. XOMA has a consensus target price of $57.00, indicating a potential upside of 130.02%. Given XOMA’s stronger consensus rating and higher possible upside, analysts clearly believe XOMA is more favorable than Praxis Precision Medicines.
Profitability
This table compares Praxis Precision Medicines and XOMA’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Praxis Precision Medicines | -5,037.88% | -151.02% | -115.60% |
| XOMA | -886.91% | -25.17% | -17.08% |
Summary
XOMA beats Praxis Precision Medicines on 10 of the 13 factors compared between the two stocks.
About Praxis Precision Medicines
Praxis Precision Medicines, Inc., a clinical-stage biopharmaceutical company, engages in the development of therapies for central nervous system disorders characterized by neuronal excitation-inhibition imbalance. It is developing ulixacaltamide, a small molecule inhibitor of T-type calcium channels that is in Phase III clinical trial for the treatment of essential tremor; PRAX-562 for the treatment of pediatric patients with developmental and epileptic encephalopathies (DEE); and PRAX-628 to treat focal epilepsy. The company also develops PRAX-222 for the treatment of pediatric patients with early-onset SCN2A-DEE; PRAX-020 to treat KCNT1 related epilepsies; PRAX-080 for the treatment of PCDH19; and PRAX-090 and PRAX-100 for SYNGAP1 and SCN2A-LoF. It has a license agreement with RogCon Inc.; a research collaboration and license agreement with Ionis Pharmaceuticals, Inc.; a strategic collaboration and license agreement with UCB Biopharma SRL; and collaboration with The Florey Institute to develop three novel ASOs. The company was incorporated in 2015 and is based in Boston, Massachusetts.
About XOMA
XOMA Corporation operates as a biotech royalty aggregator in the United States and the Asia Pacific. It has a portfolio of economic rights to future potential milestone and royalty payments associated with partnered commercial and pre-commercial therapeutic candidates. The company also focuses on early to mid-stage clinical assets primarily in Phase 1 and 2 with commercial sales potential that are licensed to partners; and acquires milestone and royalty revenue streams on late-stage clinical or commercial assets. It has a portfolio with various assets. XOMA Corporation was incorporated in 1981 and is headquartered in Emeryville, California.
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