Analyzing Prothena (NASDAQ:PRTA) & Century Therapeutics (NASDAQ:IPSC)

Prothena (NASDAQ:PRTA) and Century Therapeutics (NASDAQ:IPSC) are both small-cap healthcare companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, earnings, valuation, risk and dividends.

Valuation & Earnings

This table compares Prothena and Century Therapeutics”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Prothena	$9.68 million	43.10	-$244.09 million	($0.48)	-16.60
Century Therapeutics	$109.16 million	2.79	-$9.58 million	($0.93)	-1.81

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Prothena	-45.44%	-9.78%	-8.78%
Century Therapeutics	N/A	-49.51%	-38.09%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Prothena and Century Therapeutics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Prothena	1	1	4	1	2.71
Century Therapeutics	1	2	4	0	2.43

Prothena currently has a consensus target price of $20.00, indicating a potential upside of 150.94%. Century Therapeutics has a consensus target price of $4.75, indicating a potential upside of 182.74%. Given Century Therapeutics’ higher probable upside, analysts plainly believe Century Therapeutics is more favorable than Prothena.

Institutional and Insider Ownership

97.1% of Prothena shares are owned by institutional investors. Comparatively, 50.2% of Century Therapeutics shares are owned by institutional investors. 10.4% of Prothena shares are owned by insiders. Comparatively, 2.4% of Century Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Prothena has a beta of -0.2, indicating that its share price is 120% less volatile than the S&P 500. Comparatively, Century Therapeutics has a beta of 1.78, indicating that its share price is 78% more volatile than the S&P 500.

Summary

Prothena beats Century Therapeutics on 8 of the 14 factors compared between the two stocks.

About Prothena

Prothena Corporation plc, a late-stage clinical biotechnology company, focuses on discovery and development of novel therapies to treat diseases caused by protein dysregulation in the United States. The company is involved in developing birtamimab, an investigational humanized antibody that is in Phase III clinical trial for the treatment of AL amyloidosis; Prasinezumab, a humanized monoclonal antibody, for the treatment of Parkinson’s disease and other related synucleinopathies which is in Phase IIb clinical trial; NNC6019 that is in Phase lI clinical trial for the treatment of ATTR amyloidosis; and BMS-986446 and PRX012, which is in Phase I clinical trial for the treatment of Alzheimer’s disease. Its discovery and preclinical programs include PRX123, a dual Aß-Tau vaccine for the treatment and prevention of Alzheimer’s disease; and PRX019 for the treatment of neurogenerative diseases, as well as TDP-43 for the treatment of amyotrophic lateral sclerosis. Prothena Corporation plc 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 a-synuclein, including prasinezumab; and a collaboration agreement with Bristol-Myers Squibb to develop and commercialize antibodies targeting tau, TDP-43. The company was incorporated in 2012 and is based in Dublin, Ireland.

About Century Therapeutics

Century Therapeutics, Inc., a biotechnology company, engages in the development of genetically engineered allogeneic cell therapies for the treatment of solid tumor and hematological malignancies. Its lead product candidate is CNTY-101, an allogeneic, induced pluripotent stem cells (iPSCs)-derived chimeric antigen receptors (CAR)-iNK cell therapy, under Phase 1 trials targeting CD19 for relapsed, refractory B-cell lymphoma. The company is also involved in the development of CNTY-102, a bi-specific CD19 + CD22 CAR-iT product candidate for relapsed, refractory B-cell lymphoma and other B-cell malignancies; and CNTY-107, a Nectin-4 CAR-iT targeted product candidate for Nectin-4 positive solid tumors. In addition, it has a strategic collaboration with Bristol-Myers Squibb Company to develop and commercialize up to four iNK or iT programs, including CNTY-104, a multi-specific collaboration program targeting acute myeloid leukemia; and CNTY-106, a multi-specific collaboration program for multiple myeloma. The company was incorporated in 2018 and is headquartered in Philadelphia, Pennsylvania.