Larimar Therapeutics (NASDAQ:LRMR) & Prelude Therapeutics (NASDAQ:PRLD) Critical Analysis

Larimar Therapeutics (NASDAQ:LRMR) and Prelude Therapeutics (NASDAQ:PRLD) are both small-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, dividends, valuation, profitability, risk, earnings and institutional ownership.

Insider & Institutional Ownership

91.9% of Larimar Therapeutics shares are held by institutional investors. Comparatively, 79.7% of Prelude Therapeutics shares are held by institutional investors. 3.5% of Larimar Therapeutics shares are held by insiders. Comparatively, 62.8% of Prelude 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.

Volatility & Risk

Larimar Therapeutics has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500. Comparatively, Prelude Therapeutics has a beta of 1.43, indicating that its share price is 43% more volatile than the S&P 500.

Earnings & Valuation

This table compares Larimar Therapeutics and Prelude Therapeutics”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Larimar Therapeutics	N/A	N/A	-$36.95 million	($1.15)	-2.18
Prelude Therapeutics	$7.00 million	5.80	-$121.83 million	($1.69)	-0.44

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

Profitability

This table compares Larimar Therapeutics and Prelude Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Larimar Therapeutics	N/A	-35.87%	-32.37%
Prelude Therapeutics	N/A	-66.89%	-55.59%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Larimar Therapeutics and Prelude Therapeutics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Larimar Therapeutics	0	0	10	1	3.09
Prelude Therapeutics	1	0	2	0	2.33

Larimar Therapeutics presently has a consensus target price of $20.13, suggesting a potential upside of 701.79%. Prelude Therapeutics has a consensus target price of $4.00, suggesting a potential upside of 443.11%. Given Larimar Therapeutics’ stronger consensus rating and higher possible upside, research analysts clearly believe Larimar Therapeutics is more favorable than Prelude Therapeutics.

Summary

Larimar Therapeutics beats Prelude Therapeutics on 9 of the 13 factors compared between the two stocks.

About Larimar Therapeutics

Larimar Therapeutics, Inc., a clinical-stage biotechnology company, focuses on developing treatments for rare diseases using its novel cell penetrating peptide technology platform. Its lead product candidate is CTI-1601, which is in Phase 2 OLE clinical trial for the treatment of Friedreich's ataxia, a rare, progressive and fatal genetic disease. Larimar Therapeutics, Inc. is based in Bala Cynwyd, Pennsylvania.

About Prelude Therapeutics

Prelude Therapeutics Incorporated, a clinical-stage biopharmaceutical company, focuses on the discovery and development of novel precision cancer medicines to underserved patients. It is developing PRT1419, a myeloid cell leukemia-1 inhibitor, which is in Phase 1 clinical trial for the treatment of selected relapsed/refractory myeloid or B-cell malignancies; PRT2527, a cyclin-dependent kinase, which is in Phase 1 clinical trial for the treatment of advanced solid tumors; PRT3645, a cyclin-dependent kinase 4/6 inhibitor, which is in Phase 1 clinical trial for the treatment of advanced and metastatic solid tumors; and PRT3879, a SMARCA2 selective protein degrader, which is in Phase 2/3 clinical trial for the treatment of advanced and metastatic solid tumors with loss of SMARCA4 due to truncating mutation and/or deletion. The company's CDK9 program is a regulator of cancer-promoting transcriptional programs, including MCL1, MYC and MYB. Prelude Therapeutics Incorporated was incorporated in 2016 and is based in Wilmington, Delaware.