DURECT (NASDAQ:DRRX) and Immutep (NASDAQ:IMMP) Critical Contrast

Immutep (NASDAQ:IMMP) and DURECT (NASDAQ:DRRX) are both small-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, profitability, risk, analyst recommendations, institutional ownership, dividends and earnings.

Volatility and Risk

Immutep has a beta of 2.1, indicating that its stock price is 110% more volatile than the S&P 500. Comparatively, DURECT has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500.

Institutional and Insider Ownership

2.3% of Immutep shares are owned by institutional investors. Comparatively, 28.0% of DURECT shares are owned by institutional investors. 3.1% of Immutep shares are owned by insiders. Comparatively, 4.3% of DURECT shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Immutep and DURECT, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Immutep	0	0	1	0	3.00
DURECT	0	2	3	0	2.60

Immutep presently has a consensus target price of $8.50, indicating a potential upside of 195.14%. DURECT has a consensus target price of $27.50, indicating a potential upside of 2,494.34%. Given DURECT’s higher probable upside, analysts plainly believe DURECT is more favorable than Immutep.

Earnings and Valuation

This table compares Immutep and DURECT’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Immutep	$3.50 million	72.35	-$26.86 million	N/A	N/A
DURECT	$8.55 million	3.85	-$27.62 million	($1.22)	-0.87

Immutep has higher earnings, but lower revenue than DURECT.

Profitability

This table compares Immutep and DURECT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Immutep	N/A	N/A	N/A
DURECT	-323.16%	-316.78%	-76.59%

Summary

Immutep beats DURECT on 7 of the 12 factors compared between the two stocks.

About Immutep

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.

About DURECT

DURECT Corporation, a biopharmaceutical company, develops medicines based on its epigenetic regulator program. The company's lead product larsucosterol (DUR-928), an endogenous, orally bioavailable small molecule that is in Phase IIb clinical trial to play a regulatory role in lipid metabolism, stress and inflammatory responses, and cell death and survival to treat alcohol-associated hepatitis, as well as completed Phase Ib clinical trial to treat patients with nonalcoholic steatohepatitis. It also offers ALZET product line that consists of osmotic pumps and accessories used for research in mice, rats, and other laboratory animals. In addition, the company offers POSIMIR, a post-surgical pain product to deliver bupivacaine over three days in adults; and Methydur to treat attention deficit hyperactivity disorder. It markets and sells its ALZET lines through direct sales force in the United States, as well as through a network of distributors in other countries. The company has strategic collaboration and other agreements with Virginia Commonwealth University Intellectual Property Foundation; Indivior UK Ltd.; and Innocoll Pharmaceuticals Limited. DURECT Corporation was incorporated in 1998 and is headquartered in Cupertino, California.