Prima BioMed (NASDAQ:IMMP) and Insmed (NASDAQ:INSM) Critical Analysis

Prima BioMed (NASDAQ:IMMP) and Insmed (NASDAQ:INSM) are both medical companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, risk, valuation, dividends, profitability, earnings and institutional ownership.

Volatility & Risk

Prima BioMed has a beta of 1.89, indicating that its stock price is 89% more volatile than the S&P 500. Comparatively, Insmed has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Prima BioMed and Insmed, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Prima BioMed	1	0	1	0	2.00
Insmed	1	1	19	0	2.86

Prima BioMed currently has a consensus target price of $7.00, indicating a potential upside of 302.30%. Insmed has a consensus target price of $173.29, indicating a potential downside of 7.27%. Given Prima BioMed’s higher possible upside, equities analysts clearly believe Prima BioMed is more favorable than Insmed.

Profitability

This table compares Prima BioMed and Insmed’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Prima BioMed	N/A	N/A	N/A
Insmed	-259.82%	-195.37%	-49.49%

Insider & Institutional Ownership

2.3% of Prima BioMed shares are held by institutional investors. 3.1% of Prima BioMed shares are held by company insiders. Comparatively, 3.0% of Insmed shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Prima BioMed and Insmed”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Prima BioMed	N/A	N/A	-$39.78 million	N/A	N/A
Insmed	$447.02 million	89.16	-$913.77 million	($6.19)	-30.19

Prima BioMed has higher earnings, but lower revenue than Insmed.

Summary

Prima BioMed beats Insmed on 8 of the 11 factors compared between the two stocks.

About Prima BioMed

Immutep Limited, a clinical-stage biotechnology company, engages in developing novel LAG-3 Immunotherapy for cancer and autoimmune diseases. The company is involved in advancing therapeutics related to Lymphocyte Activation Gene-3 (LAG-3), a cell surface molecule that plays a vital role in regulating the immune system. Its LAG-3 immunotherapies are designed to harness and strengthen the power of patients' immune systems to fight cancer and autoimmune disease. Its lead product candidate is eftilagimod alpha (efti or IMP321) for the treatment of different types of cancers. The trials that efi is being evaluated in include TACTI-002, a Phase II clinical trial for the treatment of head and neck squamous cell carcinoma (HNSCC) and non-small cell lung cancer (NSCLC); TACTI-003, a Phase IIb clinical trial to treat HNSCC; and INSIGHT-003, a Phase I clinical trial for the treatment of NSCLC, as well as INSIGHT-005, a Phase I/IIa clinical trial to treat solid tumors. In addition, it offers IMP761, an agonist of lymphocyte activation gene 3 for autoimmune disease; IMP701, an antagonist antibody that acts to stimulate T cell proliferation in cancer patients; and IMP731, a depleting antibody that removes T cells involved in autoimmunity. The company has collaboration agreements with GlaxoSmithKline, Novartis, CYTLIMIC Inc., Merck & Co., Inc., Institute of Clinical Cancer Research, Merck KGaA, and EOC Pharma. The company was formerly known as Prima BioMed Ltd and changed its name to Immutep Limited in November 2017. The company was incorporated in 1987 and is headquartered in Sydney, Australia.

About Insmed

Insmed Incorporated is a global biopharmaceutical company on a mission to transform the lives of patients with serious and rare diseases. Insmed’s first commercial product is ARIKAYCE® (amikacin liposome inhalation suspension), which is approved in the United States for the treatment of Mycobacterium avium complex (MAC) lung disease as part of a combination antibacterial drug regimen for adult patients with limited or no alternative treatment options. MAC lung disease is a rare and often chronic infection that can cause irreversible lung damage and can be fatal. Insmed’s earlier-stage clinical pipeline includes INS1007, a novel oral reversible inhibitor of dipeptidyl peptidase 1 with therapeutic potential in non-cystic fibrosis bronchiectasis and other inflammatory diseases, and INS1009, an inhaled formulation of a treprostinil prodrug that may offer a differentiated product profile for rare pulmonary disorders, including pulmonary arterial hypertension.