Larimar Therapeutics (NASDAQ:LRMR – Get Free Report) and Prelude Therapeutics (NASDAQ:PRLD – Get Free Report) are both small-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, valuation, earnings, risk and dividends.
Valuation & Earnings
This table compares Larimar Therapeutics and Prelude Therapeutics”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Larimar Therapeutics | N/A | N/A | -$36.95 million | ($1.30) | -1.73 |
| Prelude Therapeutics | $7.00 million | 5.04 | -$121.83 million | ($1.69) | -0.38 |
Larimar Therapeutics has higher earnings, but lower revenue than Prelude Therapeutics. Larimar Therapeutics is trading at a lower price-to-earnings ratio than Prelude Therapeutics, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Analyst Recommendations
This is a summary of current ratings and price targets for Larimar Therapeutics and Prelude Therapeutics, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Larimar Therapeutics | 0 | 0 | 11 | 1 | 3.08 |
| Prelude Therapeutics | 1 | 0 | 2 | 0 | 2.33 |
Larimar Therapeutics currently has a consensus price target of $20.22, indicating a potential upside of 798.77%. Prelude Therapeutics has a consensus price target of $4.00, indicating a potential upside of 525.49%. Given Larimar Therapeutics’ stronger consensus rating and higher possible upside, analysts clearly believe Larimar Therapeutics is more favorable than Prelude Therapeutics.
Institutional and Insider Ownership
91.9% of Larimar Therapeutics shares are owned by institutional investors. Comparatively, 79.7% of Prelude Therapeutics shares are owned by institutional investors. 3.5% of Larimar Therapeutics shares are owned by insiders. Comparatively, 62.8% of Prelude Therapeutics shares are owned 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.
Profitability
This table compares Larimar Therapeutics and Prelude Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Larimar Therapeutics | N/A | -35.87% | -32.37% |
| Prelude Therapeutics | N/A | -66.89% | -55.59% |
Summary
Larimar Therapeutics beats Prelude Therapeutics on 9 of the 13 factors compared between the two stocks.
About Larimar Therapeutics
Larimar Therapeutics, Inc., a clinical-stage biotechnology company, focuses on developing treatments for rare diseases using its novel cell penetrating peptide technology platform. Its lead product candidate is CTI-1601, which is in Phase 2 OLE clinical trial for the treatment of Friedreich's ataxia, a rare, progressive and fatal genetic disease. Larimar Therapeutics, Inc. is based in Bala Cynwyd, Pennsylvania.
About Prelude Therapeutics
Prelude Therapeutics Incorporated, a clinical-stage biopharmaceutical company, focuses on the discovery and development of novel precision cancer medicines to underserved patients. It is developing PRT1419, a myeloid cell leukemia-1 inhibitor, which is in Phase 1 clinical trial for the treatment of selected relapsed/refractory myeloid or B-cell malignancies; PRT2527, a cyclin-dependent kinase, which is in Phase 1 clinical trial for the treatment of advanced solid tumors; PRT3645, a cyclin-dependent kinase 4/6 inhibitor, which is in Phase 1 clinical trial for the treatment of advanced and metastatic solid tumors; and PRT3879, a SMARCA2 selective protein degrader, which is in Phase 2/3 clinical trial for the treatment of advanced and metastatic solid tumors with loss of SMARCA4 due to truncating mutation and/or deletion. The company's CDK9 program is a regulator of cancer-promoting transcriptional programs, including MCL1, MYC and MYB. Prelude Therapeutics Incorporated was incorporated in 2016 and is based in Wilmington, Delaware.
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