ProQR Therapeutics N.V. (NASDAQ:PRQR) shares are up more than 569.77% this year and recently increased 15.82% or $2.95 to settle at $21.60. Bellerophon Therapeutics, Inc. (NASDAQ:BLPH), on the other hand, is down -58.53% year to date as of 09/11/2018. It currently trades at $1.07 and has returned 28.14% during the past week.
ProQR Therapeutics N.V. (NASDAQ:PRQR) and Bellerophon Therapeutics, Inc. (NASDAQ:BLPH) are the two most active stocks in the Biotechnology industry based on today’s trading volumes. Investors are clearly interested in the two names, but is one a better choice than the other? We will compare the two companies across growth, profitability, risk, valuation, and insider trends to answer this question.Cash Flow
The amount of free cash flow available to investors is ultimately what determines the value of a stock. PRQR’s free cash flow (“FCF”) per share for the trailing twelve months was -0.20. Comparatively, BLPH’s free cash flow per share was -0.10.Liquidity and Financial Risk
Liquidity and leverage ratios are important because they reveal the financial health of a company. PRQR has a current ratio of 4.00 compared to 3.20 for BLPH. This means that PRQR can more easily cover its most immediate liabilities over the next twelve months.Valuation
PRQR trades at a P/B of 26.02, and a P/S of 260.24, compared to for BLPH. Given that earnings are what matter most to investors, analysts tend to place a greater weight on the P/E.
Analyst Price Targets and Opinions
Just because a stock is cheaper doesn’t mean there’s more value to be had. In order to assess value we need to compare the current price to where it’s likely to trade in the future. PRQR is currently priced at a -1.82% to its one-year price target of 22.00. Comparatively, BLPH is -64.33% relative to its price target of 3.00. This suggests that BLPH is the better investment over the next year.
Risk and Volatility
Analyst use beta to measure a stock’s volatility relative to the overall market. Stocks with a beta above 1 tend to have bigger swings in price than the market as a whole, the opposite being the case for stocks with a beta below 1. PRQR has a beta of 0.13 and BLPH’s beta is -0.83. BLPH’s shares are therefore the less volatile of the two stocks.Insider Activity and Investor Sentiment
Analysts often look at short interest, or the percentage of a company’s float currently being shorted by investors, to aid in their outlook for a particular stock. PRQR has a short ratio of 0.38 compared to a short interest of 2.84 for BLPH. This implies that the market is currently less bearish on the outlook for PRQR.Summary
Bellerophon Therapeutics, Inc. (NASDAQ:BLPH) beats ProQR Therapeutics N.V. (NASDAQ:PRQR) on a total of 7 of the 13 factors compared between the two stocks. BLPH higher liquidity, has higher cash flow per share and has lower financial risk. In terms of valuation, BLPH is the cheaper of the two stocks on book value and sales basis, BLPH is more undervalued relative to its price target. Finally, SBGL has better sentiment signals based on short interest.