Proteon Therapeutics (NASDAQ:PRTO) and Gilead Sciences (NASDAQ:GILD) are both medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, risk, institutional ownership, earnings, dividends and analyst recommendations.

Valuation & Earnings

This table compares Proteon Therapeutics and Gilead Sciences’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Proteon Therapeutics N/A N/A -$29.96 million ($2.13) -0.74
Gilead Sciences $26.11 billion 3.65 $4.63 billion $8.56 8.60

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

Profitability

This table compares Proteon Therapeutics and Gilead Sciences’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Proteon Therapeutics N/A -266.77% -72.55%
Gilead Sciences 9.52% 41.57% 13.79%

Dividends

Gilead Sciences pays an annual dividend of $2.28 per share and has a dividend yield of 3.1%. Proteon Therapeutics does not pay a dividend. Gilead Sciences pays out 26.6% of its earnings in the form of a dividend. Gilead Sciences has raised its dividend for 2 consecutive years.

Analyst Recommendations

This is a summary of current ratings and target prices for Proteon Therapeutics and Gilead Sciences, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Proteon Therapeutics 0 1 3 0 2.75
Gilead Sciences 0 9 12 1 2.64

Proteon Therapeutics presently has a consensus target price of $3.00, suggesting a potential upside of 89.87%. Gilead Sciences has a consensus target price of $88.20, suggesting a potential upside of 19.85%. Given Proteon Therapeutics’ stronger consensus rating and higher probable upside, equities analysts clearly believe Proteon Therapeutics is more favorable than Gilead Sciences.

Volatility and Risk

Proteon Therapeutics has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500. Comparatively, Gilead Sciences has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500.

Institutional & Insider Ownership

50.6% of Proteon Therapeutics shares are owned by institutional investors. Comparatively, 78.0% of Gilead Sciences shares are owned by institutional investors. 45.7% of Proteon Therapeutics shares are owned by company insiders. Comparatively, 1.2% of Gilead Sciences shares are owned 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

Gilead Sciences beats Proteon Therapeutics on 12 of the 17 factors compared between the two stocks.

Proteon Therapeutics Company Profile

Proteon Therapeutics, Inc., a late-stage biopharmaceutical company, focuses on the development of pharmaceuticals to address the needs of patients with renal and vascular disease. Its lead product candidate is vonapanitase, an investigational drug intended to improve hemodialysis vascular access outcomes. The company develops vonapanitase, a recombinant human elastase, which has completed Phase II and Phase III clinical trials for patients with chronic kidney disease. It is also evaluating vonapanitase in a Phase I clinical trial in patients with peripheral artery disease. The company was founded in 2001 and is based in Waltham, Massachusetts.

Gilead Sciences Company Profile

Gilead Sciences, Inc., a biopharmaceutical company, discovers, develops, and commercializes therapeutics in the areas of unmet medical needs in the United States, Europe, and internationally. The company's products include Biktarvy, Descovy, Odefsey, Genvoya, Stribild, Complera/Eviplera, Atripla, Truvada, Viread, Emtriva, and Tybost for the treatment of human immunodeficiency virus (HIV) infection in adults; and Vosevi, Vemlidy, Epclusa, Harvoni, Sovaldi, Viread, and Hepsera products for treating liver diseases. It also provides Yescarta, a chimeric antigen receptor T cell therapy for adult patients with relapsed or refractory large B-cell lymphoma; Zydelig, a PI3K delta inhibitor for certain blood cancers; Letairis, an oral formulation of an endothelin receptor antagonist for pulmonary arterial hypertension; Ranexa, a tablet to treat chronic angina; and Lexiscan, an injection for use as a pharmacologic stress agent in radionuclide myocardial perfusion imaging. In addition, the company offers Cayston, an inhaled antibiotic for the treatment of respiratory systems in cystic fibrosis patients; Tamiflu, an oral antiviral capsule for the treatment and prevention of influenza A and B; AmBisome, an antifungal agent to treat serious invasive fungal infections; and Macugen, an anti-angiogenic oligonucleotide to treat neovascular age-related macular degeneration. Further, it has product candidates in various stages of development for the treatment of HIV/AIDS and liver diseases, hematology/oncology, inflammation/respiratory diseases, and others. The company markets its products through its commercial teams; and in conjunction with third-party distributors and corporate partners. Gilead Sciences, Inc. has collaboration agreements with Bristol-Myers Squibb Company, Janssen Sciences Ireland UC, Japan Tobacco Inc., and Galapagos NV. The company was founded in 1987 and is headquartered in Foster City, California.

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