DURECT Corporation (DRRX) vs. ProNAi Therapeutics (SRRA) Head to Head Review

DURECT Corporation (NASDAQ: DRRX) and ProNAi Therapeutics (NASDAQ:SRRA) are both small-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, institutional ownership, earnings, profitability and risk.

Valuation and Earnings

This table compares DURECT Corporation and ProNAi Therapeutics’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
DURECT Corporation $14.02 million 10.17 -$34.50 million ($0.15) -6.40
ProNAi Therapeutics N/A N/A -$47.86 million ($0.95) -2.02

DURECT Corporation has higher revenue and earnings than ProNAi Therapeutics. DURECT Corporation is trading at a lower price-to-earnings ratio than ProNAi Therapeutics, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

DURECT Corporation has a beta of 1.63, indicating that its stock price is 63% more volatile than the S&P 500. Comparatively, ProNAi Therapeutics has a beta of 2.32, indicating that its stock price is 132% more volatile than the S&P 500.

Institutional and Insider Ownership

46.0% of DURECT Corporation shares are held by institutional investors. Comparatively, 55.7% of ProNAi Therapeutics shares are held by institutional investors. 10.3% of DURECT Corporation shares are held by insiders. Comparatively, 5.7% of ProNAi Therapeutics shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations and price targets for DURECT Corporation and ProNAi Therapeutics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DURECT Corporation 0 2 1 0 2.33
ProNAi Therapeutics 0 0 3 0 3.00

DURECT Corporation presently has a consensus target price of $2.67, suggesting a potential upside of 177.78%. ProNAi Therapeutics has a consensus target price of $4.00, suggesting a potential upside of 108.33%. Given DURECT Corporation’s higher possible upside, equities analysts plainly believe DURECT Corporation is more favorable than ProNAi Therapeutics.

Profitability

This table compares DURECT Corporation and ProNAi Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DURECT Corporation -62.57% -419.65% -45.77%
ProNAi Therapeutics N/A -36.93% -34.96%

Summary

ProNAi Therapeutics beats DURECT Corporation on 7 of the 12 factors compared between the two stocks.

DURECT Corporation Company Profile

Durect Corporation is a biopharmaceutical company with research and development programs. The Company’s products candidates include DUR-928, oral for metabolic/lipid disorders, and DUR-928, injectable for acute organ injuries. Its other product candidates include POSIMIR (controlled release injection of bupivacaine), REMOXY (oral controlled release oxycodone), ORADUR-ADHD, ELADUR (controlled release injection of bupivicane), Relday (risperidone), ORADUR-based opioid (hydromorphone) and SABER-based ophthalmic. The Company’s ALZET product line consists of miniature, implantable osmotic pumps and accessories used for experimental research in mice, rats and other laboratory animals. The Company also manufactures and sells osmotic pumps used in laboratory research and design; and develops and manufactures a range of standard and custom biodegradable polymers and excipients for pharmaceutical and medical device clients for use as raw materials in their products.

ProNAi Therapeutics Company Profile

Sierra Oncology, Inc., formerly ProNAi Therapeutics, Inc., is a clinical-stage drug development company. The Company’s lead drug candidate, SRA737, is orally bioavailable small molecule inhibitor of Checkpoint kinase 1 (Chk1), a key cell cycle checkpoint and central regulator of the deoxyribonucleic acid (DNA) Damage Response (DDR) network. SRA737 is being investigated in approximately two Phase I clinical trials in patients with advanced cancer. Sierra Oncology is also advancing SRA141, an orally bioavailable small molecule inhibitor of the cell division cycle 7 kinase (Cdc7) kinase undergoing preclinical development. Sierra is building a range of pipeline of various oncology assets against targets at the edge of cancer biology. The Company’s SRA737 and SRA141 target the DDR network, a scientifically approach with far-reaching potential across oncology. SRA141 is an orally available small molecule inhibitor of Cdc7.

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