Praxis Precision Medicines (NASDAQ:PRAX – Get Free Report) and Liquidia (NASDAQ:LQDA – Get Free Report) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, risk, profitability and institutional ownership.
Valuation & Earnings
This table compares Praxis Precision Medicines and Liquidia”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Praxis Precision Medicines | $8.55 million | 91.14 | -$123.28 million | ($10.27) | -3.76 |
| Liquidia | $14.00 million | 91.97 | -$78.50 million | ($1.67) | -9.04 |
Liquidia has higher revenue and earnings than Praxis Precision Medicines. Liquidia 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.
Risk and Volatility
Analyst Recommendations
This is a summary of recent ratings and target prices for Praxis Precision Medicines and Liquidia, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Praxis Precision Medicines | 1 | 0 | 8 | 0 | 2.78 |
| Liquidia | 0 | 1 | 6 | 2 | 3.11 |
Praxis Precision Medicines currently has a consensus target price of $123.33, suggesting a potential upside of 219.02%. Liquidia has a consensus target price of $26.63, suggesting a potential upside of 76.44%. Given Praxis Precision Medicines’ higher possible upside, equities research analysts plainly believe Praxis Precision Medicines is more favorable than Liquidia.
Profitability
This table compares Praxis Precision Medicines and Liquidia’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Praxis Precision Medicines | -9,409.22% | -54.86% | -50.52% |
| Liquidia | -765.38% | -163.21% | -67.14% |
Institutional and Insider Ownership
67.8% of Praxis Precision Medicines shares are held by institutional investors. Comparatively, 64.5% of Liquidia shares are held by institutional investors. 2.7% of Praxis Precision Medicines shares are held by company insiders. Comparatively, 30.1% of Liquidia shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Summary
Liquidia beats Praxis Precision Medicines on 8 of the 15 factors compared between the two stocks.
About Praxis Precision Medicines
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.
About Liquidia
Liquidia Corporation, a biopharmaceutical company, develops, manufactures, and commercializes various products for unmet patient needs in the United States. Its lead product candidates include YUTREPIA, an inhaled dry powder formulation of treprostinil for the treatment of pulmonary arterial hypertension (PAH) and pulmonary hypertension associated with interstitial lung disease (PH-ILD). The company also offers Remodulin, a treprostinil administered through continuous intravenous and subcutaneous infusion. The company also a license agreement with Pharmosa Biopharm Inc to develop and commercialize L606, an inhaled sustained-release formulation of Treprostinil for the treatment of PAH and PH-ILD. Liquidia Corporation was founded in 2004 and is headquartered in Morrisville, North Carolina.
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