Innate Pharma (OTCMKTS:IPHYF) & MeiraGTx (NASDAQ:MGTX) Critical Review

MeiraGTx (NASDAQ:MGTX) and Innate Pharma (OTCMKTS:IPHYF) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, risk, earnings and valuation.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for MeiraGTx and Innate Pharma, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MeiraGTx	0	0	2	0	3.00
Innate Pharma	0	0	0	0	0.00

MeiraGTx currently has a consensus target price of $23.50, indicating a potential upside of 279.03%. Given MeiraGTx’s stronger consensus rating and higher possible upside, equities analysts plainly believe MeiraGTx is more favorable than Innate Pharma.

Earnings and Valuation

This table compares MeiraGTx and Innate Pharma”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MeiraGTx	$13.93 million	34.79	-$84.03 million	($1.21)	-5.12
Innate Pharma	$66.71 million	3.49	-$8.19 million	N/A	N/A

Innate Pharma has higher revenue and earnings than MeiraGTx.

Institutional & Insider Ownership

67.5% of MeiraGTx shares are owned by institutional investors. 8.4% of MeiraGTx shares are owned by insiders. Comparatively, 31.9% of Innate Pharma 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.

Profitability

This table compares MeiraGTx and Innate Pharma’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MeiraGTx	-633.05%	-146.38%	-53.05%
Innate Pharma	N/A	N/A	N/A

Risk and Volatility

MeiraGTx has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500. Comparatively, Innate Pharma has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500.

About MeiraGTx

MeiraGTx Holdings plc, a clinical stage gene therapy company, focusing on developing treatments for patients with serious diseases. The company develops various therapies for ocular diseases, including inherited retinal diseases and large degenerative ocular diseases, neurodegenerative diseases, and xerostomia. Its programs in clinical development include Phase I/II clinical stage programs in achromatopsia, X-linked retinitis pigmentosa, and RPE65-deficiency; Phase I clinical trials for radiation-induced xerostomia; and Parkinson's program that has completed a Phase II trial. It has a research collaboration agreement with Janssen Pharmaceuticals, Inc. for the research, development, and commercialization of gene therapies for the treatment of inherited retinal disease. The company was incorporated in 2015 and is based in New York, New York.

About Innate Pharma

Innate Pharma S.A., a biotechnology company, develops immunotherapies for cancer patients in France and internationally. The company's products include Lacutamab (IPH4102), an anti-KIR3DL2 antibody, which is in Phase II clinical trials for the treatment of cutaneous T-cell and peripheral T-cell lymphoma, as well as in Phase II clinical trials to treat refractory sézary syndrome; Monalizumab, an immune checkpoint inhibitor that is in Phase III clinical trial to treat advanced solid tumors comprising colorectal and lung cancer, as well as head and neck cancer; IPH5201, a blocking antibody that is in Phase II clinical trials targeting the CD39 immunosuppressive pathway; IPH5301, an anti-CD73 antibody targeting the immunosuppressive adenosine pathway to promote antitumor immunity; IPH6401, an BCMA-targeting NK cell engager; and IPH6101, a NKp46-based NK cell engager that targets CD123 proprietary multi-specific antibody format; and IPH62, an B7-H3-targeting NK cell engager. Its products in preclinical trials are IPH43, an anti-MICA/B ADC and IPH45, an antibody drug conjugates (ADC); and IPH67, an undisclosed, multi-specific ANKET. The company has licensing and collaboration agreements with AstraZeneca, Novo Nordisk A/S, Sanofi, and Orega Biotech; and co-development and license agreement with MedImmune Limited. Innate Pharma S.A. was incorporated in 1999 and is headquartered in Marseille, France.