Praxis Precision Medicines (NASDAQ:PRAX) & XOMA (NASDAQ:XOMA) Head to Head Comparison

XOMA (NASDAQ:XOMAGet Free Report) and Praxis Precision Medicines (NASDAQ:PRAXGet Free Report) are both small-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, risk, profitability and earnings.

Earnings and Valuation

This table compares XOMA and Praxis Precision Medicines’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
XOMA $4.76 million 61.18 -$40.83 million ($4.04) -6.19
Praxis Precision Medicines $2.45 million 371.18 -$123.28 million ($23.66) -2.25

XOMA has higher revenue and earnings than Praxis Precision Medicines. XOMA is trading at a lower price-to-earnings ratio than Praxis Precision Medicines, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings for XOMA and Praxis Precision Medicines, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
XOMA 0 0 3 0 3.00
Praxis Precision Medicines 0 1 4 0 2.80

XOMA currently has a consensus price target of $57.00, indicating a potential upside of 127.82%. Praxis Precision Medicines has a consensus price target of $105.80, indicating a potential upside of 99.06%. Given XOMA’s stronger consensus rating and higher possible upside, equities analysts plainly believe XOMA is more favorable than Praxis Precision Medicines.

Volatility and Risk

XOMA has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500. Comparatively, Praxis Precision Medicines has a beta of 2.87, meaning that its share price is 187% more volatile than the S&P 500.

Institutional & Insider Ownership

95.9% of XOMA shares are owned by institutional investors. Comparatively, 67.8% of Praxis Precision Medicines shares are owned by institutional investors. 7.2% of XOMA shares are owned by company insiders. Comparatively, 2.7% of Praxis Precision Medicines shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares XOMA and Praxis Precision Medicines’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
XOMA -886.91% -25.17% -17.08%
Praxis Precision Medicines -5,037.88% -151.02% -115.60%

Summary

XOMA beats Praxis Precision Medicines on 10 of the 14 factors compared between the two stocks.

About XOMA

(Get Free Report)

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.

About Praxis Precision Medicines

(Get Free Report)

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.

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