Protalix BioTherapeutics (NYSE:PLX – Get Free Report) and Pharming Group (NASDAQ:PHAR – Get Free Report) are both small-cap healthcare companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, institutional ownership, dividends, risk, analyst recommendations, earnings and valuation.
Earnings and Valuation
This table compares Protalix BioTherapeutics and Pharming Group”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Protalix BioTherapeutics | $80.62 million | 2.54 | $8.31 million | $0.23 | 11.04 |
| Pharming Group | $386.75 million | 2.25 | $2.85 million | $0.32 | 38.41 |
Protalix BioTherapeutics has higher earnings, but lower revenue than Pharming Group. Protalix BioTherapeutics is trading at a lower price-to-earnings ratio than Pharming Group, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Protalix BioTherapeutics has a beta of 0.01, suggesting that its share price is 99% less volatile than the S&P 500. Comparatively, Pharming Group has a beta of -0.05, suggesting that its share price is 105% less volatile than the S&P 500.
Profitability
This table compares Protalix BioTherapeutics and Pharming Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Protalix BioTherapeutics | -21.03% | -30.89% | -11.74% |
| Pharming Group | 6.23% | 8.70% | 4.93% |
Institutional & Insider Ownership
16.5% of Protalix BioTherapeutics shares are held by institutional investors. Comparatively, 0.0% of Pharming Group shares are held by institutional investors. 6.7% of Protalix BioTherapeutics shares are held by company insiders. Comparatively, 2.1% of Pharming Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a summary of current ratings and price targets for Protalix BioTherapeutics and Pharming Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Protalix BioTherapeutics | 0 | 0 | 1 | 0 | 3.00 |
| Pharming Group | 1 | 1 | 3 | 0 | 2.40 |
Protalix BioTherapeutics currently has a consensus price target of $12.00, indicating a potential upside of 372.44%. Pharming Group has a consensus price target of $39.67, indicating a potential upside of 222.76%. Given Protalix BioTherapeutics’ stronger consensus rating and higher possible upside, equities analysts clearly believe Protalix BioTherapeutics is more favorable than Pharming Group.
About Protalix BioTherapeutics
Protalix BioTherapeutics, Inc., a biopharmaceutical company, engages in the development, production, and commercialization of recombinant therapeutic proteins based on its proprietary ProCellEx plant cell-based protein expression system in the United States, Australia, Canada, Israel, Brazil, Russia, Turkey, and internationally. The company offers Elelyso for the treatment of Gaucher disease; and Elfabrio for the treatment of adult patients with a confirmed diagnosis of Fabry disease. It is also developing PRX-115, a plant cell-expressed recombinant PEGylated Uricase which is in Phase I trial for the treatment of gout; and PRX-119, a plant cell-expressed PEGylated recombinant human DNase I product candidate that is in preclinical phase for the treatment of NETs-related diseases. The company has agreements and partnerships with Pfizer; Fundação Oswaldo Cruz; and Chiesi Farmaceutici S.p.A. The company was incorporated in 1993 and is headquartered in Karmiel, Israel. Protalix BioTherapeutics, Inc. is a subsidiary of Protalix Ltd.
About Pharming Group
Pharming Group N.V., a biopharmaceutical company, develops and commercializes protein replacement therapies and precision medicines for the treatment of rare diseases in the United States, Europe, and internationally. The company offers RUCONEST, a recombinant C1 esterase inhibitor for the treatment of acute attacks in adult and adolescent patients with acute hereditary angioedema (HAE); and Joenja (leniolisib), an oral small molecule PI3K? inhibitor for the treatment of activated phosphoinositide 3-kinase delta syndrome. It also develops OTL-105, an investigational ex-vivo autologous hematopoietic stem cell gene therapy for the treatment of HAE. The company has a development collaboration and license agreement with Novartis; and a strategic collaboration agreement with Orchard Therapeutics plc for research, development, manufacturing, and commercialization of OTL-105. Pharming Group N.V. was incorporated in 1988 and is headquartered in Leiden, the Netherlands.
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