Analyzing PainReform (NASDAQ:PRFX) and Unity Biotechnology (NASDAQ:UBX)

PainReform (NASDAQ:PRFX) and Unity Biotechnology (NASDAQ:UBX) are both small-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, earnings, institutional ownership, profitability and dividends.

Volatility & Risk

PainReform has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500. Comparatively, Unity Biotechnology has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500.

Profitability

This table compares PainReform and Unity Biotechnology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PainReform	N/A	-450.64%	-241.33%
Unity Biotechnology	N/A	-119.70%	-45.86%

Earnings and Valuation

This table compares PainReform and Unity Biotechnology”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PainReform	N/A	N/A	-$9.34 million	($147.33)	-0.02
Unity Biotechnology	$240,000.00	87.06	-$39.86 million	($1.31)	-0.95

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

Insider and Institutional Ownership

37.3% of PainReform shares are held by institutional investors. Comparatively, 29.5% of Unity Biotechnology shares are held by institutional investors. 34.4% of PainReform shares are held by company insiders. Comparatively, 5.8% of Unity Biotechnology shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations for PainReform and Unity Biotechnology, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PainReform	0	1	0	0	2.00
Unity Biotechnology	0	0	2	0	3.00

PainReform presently has a consensus target price of $8.00, indicating a potential upside of 187.77%. Unity Biotechnology has a consensus target price of $8.00, indicating a potential upside of 545.16%. Given Unity Biotechnology’s stronger consensus rating and higher probable upside, analysts clearly believe Unity Biotechnology is more favorable than PainReform.

Summary

Unity Biotechnology beats PainReform on 8 of the 12 factors compared between the two stocks.

About PainReform

PainReform Ltd., a clinical stage specialty pharmaceutical company, focuses on the reformulation of established therapeutics and provides an extended period of post-surgical pain relief in Israel. It develops PRF-110, a viscous clear oil-based solution that is instilled directly into the surgical wound to provide localized and extended post-operative analgesia, as well as in Phase 3 clinical trial for pain treatment of patients undergoing bunionectomy and second trial for pain treatment of hernia repair operations. The company was incorporated in 2007 and is based in Tel Aviv, Israel.

About Unity Biotechnology

Unity Biotechnology, Inc., a biotechnology company, engages in the research and development of therapeutics to slow, halt, or reverse diseases of aging. The company's lead drug candidate includes UBX1325, which is Phase 2 clinical trial for the treatment of age-related diseases of the eye, including diabetic macular edema, age-related macular degeneration, and diabetic retinopathy. It also develops UBX1967 for the treatment of ophthalmologic diseases; UBX2048, a Tie2/VEGF bispecific; UBX2050, a human anti-Tie2 agonist monoclonal antibody for the treatment of eye diseases; and UBX2089, a a-Klotho hormone drug candidate for multiple neurology indications. The company was formerly known as Forge, Inc. and changed its name to Unity Biotechnology, Inc. in January 2015. Unity Biotechnology, Inc. was incorporated in 2009 and is headquartered in South San Francisco, California.