Financial Survey: Prelude Therapeutics (NASDAQ:PRLD) & Larimar Therapeutics (NASDAQ:LRMR)

Prelude Therapeutics (NASDAQ:PRLD) and Larimar Therapeutics (NASDAQ:LRMR) are both small-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, risk, valuation, institutional ownership, analyst recommendations and earnings.

Analyst Ratings

This is a summary of current recommendations and price targets for Prelude Therapeutics and Larimar Therapeutics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Prelude Therapeutics	1	0	2	0	2.33
Larimar Therapeutics	0	0	10	1	3.09

Prelude Therapeutics currently has a consensus target price of $4.00, indicating a potential upside of 462.90%. Larimar Therapeutics has a consensus target price of $20.13, indicating a potential upside of 692.32%. Given Larimar Therapeutics’ stronger consensus rating and higher possible upside, analysts plainly believe Larimar Therapeutics is more favorable than Prelude Therapeutics.

Earnings and Valuation

This table compares Prelude Therapeutics and Larimar Therapeutics”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Prelude Therapeutics	$7.00 million	5.60	-$121.83 million	($1.69)	-0.42
Larimar Therapeutics	N/A	N/A	-$36.95 million	($1.15)	-2.21

Larimar Therapeutics has lower revenue, but higher earnings 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.

Profitability

This table compares Prelude Therapeutics and Larimar Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Prelude Therapeutics	N/A	-66.89%	-55.59%
Larimar Therapeutics	N/A	-35.87%	-32.37%

Risk and Volatility

Prelude Therapeutics has a beta of 1.43, meaning that its stock price is 43% more volatile than the S&P 500. Comparatively, Larimar Therapeutics has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500.

Institutional & Insider Ownership

79.7% of Prelude Therapeutics shares are held by institutional investors. Comparatively, 91.9% of Larimar Therapeutics shares are held by institutional investors. 62.8% of Prelude Therapeutics shares are held by company insiders. Comparatively, 3.5% of Larimar Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Larimar Therapeutics beats Prelude Therapeutics on 9 of the 13 factors compared between the two stocks.

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.

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.