Contrasting Praxis Precision Medicines (NASDAQ:PRAX) & Generex Biotechnology (OTCMKTS:GNBT)

Generex Biotechnology (OTCMKTS:GNBT) and Praxis Precision Medicines (NASDAQ:PRAX) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Volatility and Risk

Generex Biotechnology has a beta of -0.07, suggesting that its share price is 107% less volatile than the S&P 500. Comparatively, Praxis Precision Medicines has a beta of 2.66, suggesting that its share price is 166% more volatile than the S&P 500.

Earnings & Valuation

This table compares Generex Biotechnology and Praxis Precision Medicines”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Generex Biotechnology	$2.66 million	0.00	-$33.33 million	N/A	N/A
Praxis Precision Medicines	$8.55 million	70.32	-$123.28 million	($10.27)	-2.90

Generex Biotechnology has higher earnings, but lower revenue than Praxis Precision Medicines.

Analyst Ratings

This is a breakdown of current ratings and price targets for Generex Biotechnology and Praxis Precision Medicines, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Generex Biotechnology	0	0	0	0	0.00
Praxis Precision Medicines	1	0	8	0	2.78

Praxis Precision Medicines has a consensus target price of $123.33, indicating a potential upside of 313.45%. Given Praxis Precision Medicines’ stronger consensus rating and higher probable upside, analysts plainly believe Praxis Precision Medicines is more favorable than Generex Biotechnology.

Insider & Institutional Ownership

67.8% of Praxis Precision Medicines shares are owned by institutional investors. 35.2% of Generex Biotechnology shares are owned by insiders. Comparatively, 2.7% of Praxis Precision Medicines shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Generex Biotechnology and Praxis Precision Medicines’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Generex Biotechnology	N/A	N/A	N/A
Praxis Precision Medicines	-9,409.22%	-54.86%	-50.52%

Summary

Praxis Precision Medicines beats Generex Biotechnology on 6 of the 11 factors compared between the two stocks.

About Generex Biotechnology

Generex Biotechnology Corporation, through its subsidiaries, engages in the administration of formulations of large molecule drugs to the oral cavity using a hand-held aerosol applicator in Canada and the United States. It offers Generex Oral-lyn, an oral insulin product. The company is also developing AE37, a synthetic peptide vaccine, which has completed Phase IIb clinical trial to stimulate a potent and specific immune response against tumors expressing the HER-2/neu oncogene in patients with breast cancer and prostate cancer. In addition, it develops, manufactures, and distributes rapid point-of-care in-vitro medical diagnostics for infectious diseases, such as human immunodeficiency virus, tuberculosis, malaria, hepatitis B, hepatitis C, syphilis, and others; and test kits and cassettes for testing infectious diseases, as well as Excellagen, a wound conforming gel. Further, the company is developing immunotherapeutic products and vaccines; and extracellular matrix hydrogel solution, a tissue engineered therapy for the treatment of Ulcerative Colitis. Additionally, it manufactures and sells foot and ankle surgical kits that include plates, screws, and tools; and distributes surgical supplies, orthopedic implants, artificial joints, and biologics, medical devices, and regenerative medicine products. It also serves as the general partner of the Management Services Organization. Generex Biotechnology Corporation was founded in 1983 and is headquartered in Miramar, Florida. On April 23, 2022, an involuntary petition for liquidation under Chapter 7 was filed against Generex Biotechnology Corporation in the U.S. Bankruptcy Court for the Southern District of Florida. On June 6, 2022, the involuntary petition was approved by the Court.

About Praxis Precision Medicines

Praxis Precision Medicines, Inc., a clinical-stage biopharmaceutical company, engages in the development of therapies for central nervous system disorders characterized by neuronal excitation-inhibition imbalance. It is developing ulixacaltamide, a small molecule inhibitor of T-type calcium channels that is in Phase III clinical trial for the treatment of essential tremor; PRAX-562 for the treatment of pediatric patients with developmental and epileptic encephalopathies (DEE); and PRAX-628 to treat focal epilepsy. The company also develops PRAX-222 for the treatment of pediatric patients with early-onset SCN2A-DEE; PRAX-020 to treat KCNT1 related epilepsies; PRAX-080 for the treatment of PCDH19; and PRAX-090 and PRAX-100 for SYNGAP1 and SCN2A-LoF. It has a license agreement with RogCon Inc.; a research collaboration and license agreement with Ionis Pharmaceuticals, Inc.; a strategic collaboration and license agreement with UCB Biopharma SRL; and collaboration with The Florey Institute to develop three novel ASOs. The company was incorporated in 2015 and is based in Boston, Massachusetts.