Critical Comparison: Dynavax Technologies (DVAX) and Neuroderm (NDRM)

Dynavax Technologies (NASDAQ: DVAX) and Neuroderm (NASDAQ:NDRM) are both small-cap medical companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, valuation, risk, earnings and institutional ownership.

Profitability

This table compares Dynavax Technologies and Neuroderm’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dynavax Technologies -1,177.60% -65.97% -59.47%
Neuroderm N/A -44.69% -42.41%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Dynavax Technologies and Neuroderm, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dynavax Technologies 0 0 5 0 3.00
Neuroderm 0 3 5 0 2.63

Dynavax Technologies currently has a consensus target price of $28.00, suggesting a potential upside of 60.92%. Neuroderm has a consensus target price of $45.86, suggesting a potential upside of 18.04%. Given Dynavax Technologies’ stronger consensus rating and higher possible upside, analysts plainly believe Dynavax Technologies is more favorable than Neuroderm.

Institutional & Insider Ownership

70.6% of Dynavax Technologies shares are held by institutional investors. Comparatively, 52.4% of Neuroderm shares are held by institutional investors. 2.9% of Dynavax Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Dynavax Technologies and Neuroderm’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dynavax Technologies $11.04 million 95.51 -$112.44 million ($1.95) -8.92
Neuroderm N/A N/A N/A ($2.12) -18.33

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

Summary

Dynavax Technologies beats Neuroderm on 6 of the 9 factors compared between the two stocks.

About Dynavax Technologies

Dynavax Technologies Corporation is a clinical-stage immunotherapy company. The Company is focused on leveraging the body’s innate and adaptive immune responses through toll-like receptor (TLR) stimulation. Its product candidates are being investigated for use in multiple cancer indications, as a vaccine for the prevention of hepatitis B and as a disease modifying therapy for asthma. Its products include HEPLISAV-B, AZD1419, SD-101, DV281, DV230F and DV1001. HEPLISAV-B is an investigational adult hepatitis B vaccine. AZD1419 is being developed for the treatment of asthma. SD-101 is an investigational TLR9 agonist designed to elicit a potent and focused immune response to cancer. DV281 is an investigational TLR9 agonist designed specifically for focused delivery to primary lung tumors and lung metastases. DV230F is indicated for the treatment of Liver Tumors. DV1001 targets TLR 7 and 8 agonist for multiple malignancies. DV230F and DV1001 are in pre-clinical stage of development.

About Neuroderm

NeuroDerm Ltd. is an Israel-based clinical-stage pharmaceutical company. The Company is engaged in developing treatments for central nervous system (CNS) disorders, primarily Parkinson’s disease, as well as other CNS diseases. The Company’s Parkinson’s disease product candidates are drug-device combination products, with devices and varying levodopa (LD)/carbidopa (CD) or apomorphine concentrations and dosages. Its liquid LD/CD and apomorphine formulations include ND0612H, ND0612L and ND0701. It is developing ND0612H for the treatment of patients suffering from severe Parkinson’s disease. It is developing ND0612L for the treatment of patients at the moderate stage of Parkinson’s disease that can no longer control motor complications with oral levodopa. It has also designed ND0701, which is an apomorphine-based product. ND0701 is for patients suffering from Parkinson’s disease, may be used mostly by patients suffering from high motor fluctuations and not responding well to LD/CD.

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