Reviewing Aduro BioTech (ADRO) and Proteon Therapeutics (PRTO)

Aduro BioTech (NASDAQ: ADRO) and Proteon Therapeutics (NASDAQ:PRTO) are both small-cap healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.

Institutional and Insider Ownership

45.2% of Aduro BioTech shares are held by institutional investors. Comparatively, 50.1% of Proteon Therapeutics shares are held by institutional investors. 6.6% of Aduro BioTech shares are held by insiders. Comparatively, 36.3% of Proteon Therapeutics shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Aduro BioTech and Proteon Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aduro BioTech -548.92% -39.28% -21.15%
Proteon Therapeutics N/A -105.58% -77.60%

Valuation & Earnings

This table compares Aduro BioTech and Proteon Therapeutics’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aduro BioTech $50.68 million 12.28 -$91.14 million ($1.36) -5.92
Proteon Therapeutics $2.95 million 11.35 -$28.52 million ($2.22) -0.86

Proteon Therapeutics has lower revenue, but higher earnings than Aduro BioTech. Aduro BioTech is trading at a lower price-to-earnings ratio than Proteon Therapeutics, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Aduro BioTech and Proteon Therapeutics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aduro BioTech 0 0 8 0 3.00
Proteon Therapeutics 0 4 1 0 2.20

Aduro BioTech presently has a consensus price target of $18.50, suggesting a potential upside of 129.81%. Proteon Therapeutics has a consensus price target of $3.43, suggesting a potential upside of 80.70%. Given Aduro BioTech’s stronger consensus rating and higher probable upside, equities analysts clearly believe Aduro BioTech is more favorable than Proteon Therapeutics.

Summary

Aduro BioTech beats Proteon Therapeutics on 8 of the 13 factors compared between the two stocks.

Aduro BioTech Company Profile

Aduro Biotech, Inc. is an immunotherapy company, which focuses on the discovery, development and commercialization of therapies that manage the treatment of various diseases, including cancer. The Company’s product candidates from its Live, Attenuated, Double-Deleted (LADD) Listeria monocytogenes, Stimulator of Interferon Genes Pathway Activator, and B-select monoclonal antibody platforms are designed to stimulate and/or regulate innate and adaptive immune responses, either as single agents or in combination with conventional therapies, as well as other immunotherapies. Its LADD technology platform is being developed as a treatment for multiple indications, including mesothelioma, ovarian, gastric, lung and prostate cancers. Its LADD product candidate is CRS-207, which is being developed as a treatment for multiple indications, including mesothelioma, ovarian and gastric cancers. ADU-214 and ADU-741 are product candidates in development for lung and prostate cancers, respectively.

Proteon Therapeutics Company Profile

Proteon Therapeutics, Inc. is a late-stage biopharmaceutical company, which focuses on the development of pharmaceuticals to address the needs of patients with renal and vascular disease. The Company is involved in research and development activities. The Company’s product candidate, product candidate, vonapanitase, formerly PRT-201, is a recombinant human elastase that it is developing to manage vascular access failure in patients with chronic kidney disease undergoing or planning for hemodialysis, a lifesaving treatment that cannot be conducted without a functioning vascular access. The Company has completed Phase II trial of vonapanitase in patients undergoing creation of an arteriovenous fistula (AVF). The Company initiated the first of two Phase III trials, PATENCY-1, for vonapanitase in radiocephalic AVFs. Its vonapanitase product candidate is a recombinant human elastase under development as a treatment to prevent AVF and arteriovenous graft (AVG) patency loss.

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