Financial Comparison: Prothena (NASDAQ:PRTA) versus Cara Therapeutics (NASDAQ:CARA)

Prothena (NASDAQ:PRTA) and Cara Therapeutics (NASDAQ:CARA) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.

Profitability

This table compares Prothena and Cara Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Prothena -13,615.75% -41.97% -26.26%
Cara Therapeutics -360.35% -64.36% -53.22%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Prothena and Cara Therapeutics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Prothena 0 0 6 0 3.00
Cara Therapeutics 0 0 4 0 3.00

Prothena currently has a consensus target price of $28.33, indicating a potential upside of 29.08%. Cara Therapeutics has a consensus target price of $34.50, indicating a potential upside of 71.39%. Given Cara Therapeutics’ higher possible upside, analysts clearly believe Cara Therapeutics is more favorable than Prothena.

Valuation & Earnings

This table compares Prothena and Cara Therapeutics’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Prothena $810,000.00 1,081.81 -$77.68 million ($1.95) -11.26
Cara Therapeutics $19.89 million 50.43 -$106.37 million ($2.49) -8.08

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

Risk & Volatility

Prothena has a beta of 1.71, indicating that its stock price is 71% more volatile than the S&P 500. Comparatively, Cara Therapeutics has a beta of 1.7, indicating that its stock price is 70% more volatile than the S&P 500.

Insider and Institutional Ownership

90.2% of Prothena shares are held by institutional investors. Comparatively, 67.0% of Cara Therapeutics shares are held by institutional investors. 30.4% of Prothena shares are held by insiders. Comparatively, 5.7% of Cara Therapeutics shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Prothena beats Cara Therapeutics on 10 of the 13 factors compared between the two stocks.

Prothena Company Profile

Prothena Corporation plc, a clinical-stage neuroscience company, focuses on discovery and development of novel therapies for life-threatening diseases in the United States. The company is involved in developing PRX002/RG7935 that is in Phase II clinical trial for treating Parkinson's disease and other related synucleinopathies; and PRX004, an antibody that is in Phase I clinical trial for the treatment of ATTR amyloidosis. Its discovery-stage programs include Tau for treating Alzheimer's disease, progressive supranuclear palsy, frontotemporal dementia, chronic traumatic encephalopathy, and other tauopathies; AÃ, or Amyloid Beta, a protein for the treatment of Alzheimer's disease; TDP-43 for amyotrophic lateral sclerosis and frontotemporal dementia; and other products for neurodegeneration. The company has a license, development, and commercialization agreement with F. Hoffmann-La Roche Ltd and Hoffmann-La Roche Inc. to develop and commercialize antibodies that target alpha-synuclein; and a collaboration agreement with Bristol-Myers Squibb to develop antibodies. Prothena Corporation plc was founded in 2012 and is based in Dublin, Ireland.

Cara Therapeutics Company Profile

Cara Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on developing and commercializing chemical entities with a primary focus on pruritus and pain by selectively targeting kappa opioid receptors in the United States. The company is developing product candidates that target the body's peripheral nervous system and immune cells. Its lead product candidate includes KORSUVA (CR845/ difelikefalin) injection, which is in Phase III clinical trial for the treatment of patients with moderate-to-severe chronic kidney disease-associated pruritus (CKD-aP) undergoing hemodialysis. The company is also developing Oral KORSUVA (CR845/difelikefalin), which has completed Phase II clinical trial for the treatment of pruritus in stage III-V CKD patients; in Phase II clinical trial for treating pruritus chronic liver disease; and in Phase II clinical trial for the treatment of pruritus associated with atopic dermatitis. In addition, it is developing CR845/difelikefalin Injection, which has completed Phase II/III clinical trial for the treatment of acute post-operative pain. The company has license agreements with Maruishi Pharmaceutical Co., Ltd to develop, manufacture, and commercialize drug products containing CR845/difelikefalin for acute pain and uremic pruritus in Japan; and Chong Kun Dang Pharmaceutical Corporation to develop, manufacture, and commercialize drug products containing CR845/difelikefalin in South Korea. Cara Therapeutics, Inc. was founded in 2004 and is headquartered in Stamford, Connecticut.

Receive News & Ratings for Prothena Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Prothena and related companies with MarketBeat.com's FREE daily email newsletter.