Orchard Therapeutics (NASDAQ:ORTX) and Idera Pharmaceuticals (NASDAQ:IDRA) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, analyst recommendations, earnings, valuation, dividends and institutional ownership.

Institutional & Insider Ownership

68.9% of Orchard Therapeutics shares are held by institutional investors. Comparatively, 25.8% of Idera Pharmaceuticals shares are held by institutional investors. 4.2% of Orchard Therapeutics shares are held by company insiders. Comparatively, 3.5% of Idera Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Orchard Therapeutics and Idera Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Orchard Therapeutics N/A -57.51% -45.05%
Idera Pharmaceuticals N/A -102.25% -41.09%

Analyst Recommendations

This is a summary of current ratings and target prices for Orchard Therapeutics and Idera Pharmaceuticals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Orchard Therapeutics 0 0 5 0 3.00
Idera Pharmaceuticals 0 0 3 0 3.00

Orchard Therapeutics currently has a consensus target price of $24.60, suggesting a potential upside of 371.26%. Idera Pharmaceuticals has a consensus target price of $8.00, suggesting a potential upside of 357.14%. Given Orchard Therapeutics’ higher possible upside, equities analysts plainly believe Orchard Therapeutics is more favorable than Idera Pharmaceuticals.

Volatility and Risk

Orchard Therapeutics has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500. Comparatively, Idera Pharmaceuticals has a beta of 2.13, suggesting that its share price is 113% more volatile than the S&P 500.

Valuation & Earnings

This table compares Orchard Therapeutics and Idera Pharmaceuticals’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Orchard Therapeutics $2.51 million 202.28 -$163.42 million ($1.75) -2.98
Idera Pharmaceuticals $1.45 million 40.76 -$56.51 million ($1.57) -1.11

Idera Pharmaceuticals has lower revenue, but higher earnings than Orchard Therapeutics. Orchard Therapeutics is trading at a lower price-to-earnings ratio than Idera Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Summary

Orchard Therapeutics beats Idera Pharmaceuticals on 7 of the 12 factors compared between the two stocks.

Orchard Therapeutics Company Profile

Orchard Therapeutics plc, integrated biopharmaceutical company, develops gene therapies for serious and life-threatening rare diseases. The company's gene therapy approach seeks to transform a patient's hematopoietic stem cells into a gene-modified drug product to treat the patient's disease through a single administration. Its commercial stage products include Strimvelis, a gammaretroviral-based product for the treatment of adenosine deaminase-severe combined immunodeficiency (ADA-SCID). The company's clinical development products comprise OTL-101 for the treatment of ADA-SCID; OTL-200 to treat metachromatic leukodystrophy; OTL-103 for the treatment of Wiskott-Aldrich syndrome; OTL-102 for X-linked chronic granulomatous disease; and OTL-300 for transfusion-dependent beta-thalassemia. Its preclinical programs include OTL-201 for mucopolysaccharidosis type IIIA and OTL-202 for mucopolysaccharidosis type IIIB. The company was formerly known as Orchard Rx Ltd. Orchard Therapeutics plc was founded in 2015 and is headquartered in London, the United Kingdom.

Idera Pharmaceuticals Company Profile

Idera Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on the discovery, development, and commercialization of drugs for oncology in the United States. It offers Tilsotolimod, a synthetic phosphorothioate oligonucleotide that acts as a direct agonist of TLR9 to stimulate the immune systems and for treating solid tumors, metastatic melanoma, squamous cell carcinoma, and colorectal cancer. The company was founded in 1989 and is based in Exton, Pennsylvania.

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