Head-To-Head Review: China Health Industries (OTCMKTS:CHHE) & Prothena (NASDAQ:PRTA)

China Health Industries (OTCMKTS:CHHE) and Prothena (NASDAQ:PRTA) are both small-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, earnings, institutional ownership, risk, analyst recommendations and valuation.

Institutional and Insider Ownership

97.1% of Prothena shares are owned by institutional investors. 31.3% of China Health Industries shares are owned by company insiders. Comparatively, 28.1% of Prothena shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares China Health Industries and Prothena’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
China Health Industries	$110,000.00	174.22	-$410,000.00	($0.02)	-14.62
Prothena	$91.37 million	12.35	-$147.03 million	($2.80)	-7.50

China Health Industries has higher earnings, but lower revenue than Prothena. China Health Industries is trading at a lower price-to-earnings ratio than Prothena, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for China Health Industries and Prothena, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China Health Industries	0	0	0	0	N/A
Prothena	0	2	7	0	2.78

Prothena has a consensus price target of $69.63, suggesting a potential upside of 231.55%. Given Prothena’s higher probable upside, analysts clearly believe Prothena is more favorable than China Health Industries.

Volatility and Risk

China Health Industries has a beta of -20.4, suggesting that its share price is 2,140% less volatile than the S&P 500. Comparatively, Prothena has a beta of 0.21, suggesting that its share price is 79% less volatile than the S&P 500.

Profitability

This table compares China Health Industries and Prothena’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
China Health Industries	-89.33%	-5.14%	-4.24%
Prothena	-160.91%	-24.84%	-20.24%

Summary

China Health Industries beats Prothena on 7 of the 13 factors compared between the two stocks.

About China Health Industries

China Health Industries Holdings, Inc., through its subsidiaries, manufactures and sells health products. The company operates through three segments: Humankind, HLJ Huimeijia, and Others. The company offers hemp derivative products, such as hemp oil, hemp protein powder, hemp polypeptides, collagen peptides, hemp essence repair lotions, hemp revitalizing essence products, hemp anti-aging brightening eye creams, hemp frozen age nourishing creams, hemp seed beers, and hemp seeds. It also provides health supplements, including Sailuozhi soft capsule, which is made from frog oil, soybean isoflavone, procyanidine, and vitamin E for freckle removal and skin moisture supplements under the QunLe brand; and propolis and black ant capsule that is made from propolis, black ant, acanthopanax, and astragalus root under the Kindlink brand. In addition, the company offers health products for acne removal, relieving eyestrain, enhancing bone density, enhancing memory, enhancing nutritional anemia and chloasma, relaxing bowels and promoting the discharge of lead, enhancing immunity and relieving physical fatigue, and dispelling chloasma, as well as iron and multivitamin, and mineral supplements. Further, it manufactures and sells various types of medical drugs, such as enema glycerini, umguentumacidi borici camphoratum, ge hong beriberi water, pelvic inflammation suppository, injury and paralysis tincture, indometacin and furazolidone suppositories, injury and rheumatism relieving paste, refining goupi cream, muskiness pain relieving paste, muskiness bone strengthener paste, matrine suppositories, ethacriding lactate solution, iodine tincture, mercurochrome solution, hydrogen peroxide solution, halcinonide cream, compound fluocinonide tincture, and policresulen vaginal suppository. The company primarily sells its products through sales personnel and sales agents. China Health Industries Holdings, Inc. was founded in 1996 and is based in Harbin City, the People's Republic of China.

About Prothena

Prothena Corporation plc, a late-stage clinical biotechnology company, focuses on discovery and development of novel therapies to treat diseases caused by protein dysregulation in the United States. The company is involved in developing birtamimab, an investigational humanized antibody that is in Phase III clinical trial for the treatment of AL amyloidosis; Prasinezumab, a humanized monoclonal antibody, for the treatment of Parkinson's disease and other related synucleinopathies which is in Phase IIb clinical trial; NNC6019 that is in Phase lI clinical trial for the treatment of ATTR amyloidosis; and BMS-986446 and PRX012, which is in Phase I clinical trial for the treatment of Alzheimer's disease. Its discovery and preclinical programs include PRX123, a dual Aß-Tau vaccine for the treatment and prevention of Alzheimer's disease; and PRX019 for the treatment of neurogenerative diseases, as well as TDP-43 for the treatment of amyotrophic lateral sclerosis. Prothena Corporation plc has a license, development, and commercialization agreement with F. Hoffmann-La Roche Ltd. and Hoffmann-La Roche Inc. to develop and commercialize antibodies that target a-synuclein, including prasinezumab; and a collaboration agreement with Bristol-Myers Squibb to develop and commercialize antibodies targeting tau, TDP-43. The company was incorporated in 2012 and is based in Dublin, Ireland.