Comparing Prelude Therapeutics (NASDAQ:PRLD) & Neoleukin Therapeutics (NASDAQ:NLTX)

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

Insider and Institutional Ownership

77.7% of Prelude Therapeutics shares are owned by institutional investors. Comparatively, 35.2% of Neoleukin Therapeutics shares are owned by institutional investors. 79.5% of Prelude Therapeutics shares are owned by insiders. Comparatively, 1.6% of Neoleukin Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Prelude Therapeutics and Neoleukin Therapeutics’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Prelude Therapeutics	N/A	N/A	-$115.44 million	($2.35)	-1.60
Neoleukin Therapeutics	N/A	N/A	-$57.56 million	($0.78)	-0.92

Prelude Therapeutics is trading at a lower price-to-earnings ratio than Neoleukin Therapeutics, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Prelude Therapeutics has a beta of 0.34, meaning that its stock price is 66% less volatile than the S&P 500. Comparatively, Neoleukin Therapeutics has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Prelude Therapeutics	N/A	-54.93%	-49.59%
Neoleukin Therapeutics	N/A	-43.55%	-36.13%

Analyst Ratings

This is a summary of recent ratings for Prelude Therapeutics and Neoleukin Therapeutics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Prelude Therapeutics	1	2	1	0	2.00
Neoleukin Therapeutics	1	5	0	0	1.83

Prelude Therapeutics presently has a consensus price target of $9.50, indicating a potential upside of 151.99%. Neoleukin Therapeutics has a consensus price target of $3.75, indicating a potential upside of 421.41%. Given Neoleukin Therapeutics’ higher possible upside, analysts clearly believe Neoleukin Therapeutics is more favorable than Prelude Therapeutics.

Summary

Neoleukin Therapeutics beats Prelude Therapeutics on 7 of the 11 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 PRT811, which is in Phase 1 clinical trials in solid tumors, including glioblastoma. The company is also 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 4/6 inhibitor, 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 2 clinical trial for the treatment of advanced and metastatic solid tumors; and PRT3879, a SMARCA2 selective protein degrader, which is in Phase 1 clinical trial for the treatment of advanced and metastatic solid tumors with loss of SMARCA4 due to truncating mutation and/or deletion. The company was incorporated in 2016 and is headquartered in Wilmington, Delaware.

About Neoleukin Therapeutics

Neoleukin Therapeutics, Inc., a biopharmaceutical company, develops immunotherapies for cancer, inflammation, and autoimmunity disorders using protein design technology. The company's lead product candidate is NL-201, a de novo protein designed to mimic the therapeutic activity of the cytokines interleukin (IL)-2/IL-15 for the treatment of various types of cancer, including renal cell carcinoma and melanoma. The company was formerly known as Aquinox Pharmaceuticals, Inc. and changed its name to Neoleukin Therapeutics, Inc. in August 2019. Neoleukin Therapeutics, Inc. was founded in 2003 and is headquartered in Seattle, Washington.