Prelude Therapeutics (NASDAQ:PRLD) and CytoDyn (OTCMKTS:CYDY) Financial Analysis

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CytoDyn	0	0	0	0	0.00
Prelude Therapeutics	1	0	2	0	2.33

Prelude Therapeutics has a consensus target price of $4.00, suggesting a potential upside of 0.50%. Given Prelude Therapeutics’ stronger consensus rating and higher possible upside, analysts plainly believe Prelude Therapeutics is more favorable than CytoDyn.

Insider and Institutional Ownership

5.1% of CytoDyn shares are owned by institutional investors. Comparatively, 79.7% of Prelude Therapeutics shares are owned by institutional investors. 1.0% of CytoDyn shares are owned by company insiders. Comparatively, 63.9% of Prelude Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares CytoDyn and Prelude Therapeutics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CytoDyn	N/A	N/A	$3.74 million	($0.01)	-26.26
Prelude Therapeutics	$7.00 million	32.18	-$127.17 million	($1.64)	-2.43

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CytoDyn	N/A	N/A	-132.89%
Prelude Therapeutics	N/A	-106.50%	-79.07%

Risk and Volatility

CytoDyn has a beta of 1.33, meaning that its stock price is 33% more volatile than the S&P 500. Comparatively, Prelude Therapeutics has a beta of 1.37, meaning that its stock price is 37% more volatile than the S&P 500.

Summary

Prelude Therapeutics beats CytoDyn on 9 of the 12 factors compared between the two stocks.

About CytoDyn

CytoDyn Inc., a clinical-stage biotechnology company, engages in the development of treatments for multiple therapeutic indications. The company is involved in the clinical development of leronlimab, a novel humanized monoclonal antibody targeting the C-C chemokine receptor type 5 receptor in the areas of COVID-19, human immunodeficiency virus (HIV), Metabolic dysfunction-associated steatohepatitis (MASH), and solid tumors in oncology, such as metastatic triple-negative breast cancer. Its leronlimab is currently under phase 2 development for the treatment of NASH, HIV- NASH, and solid tumors, as well as under pre-clinical development for the treatment of HIV-PrEP and HIV-Cure. The company was formerly known as RexRay Corporation. CytoDyn Inc. was incorporated in 2002 and is based in Vancouver, Washington.

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 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, 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 1 clinical trial for the treatment of advanced and metastatic solid tumors; and PRT3879, a SMARCA2 selective protein degrader, which is in Phase 2/3 clinical trial for the treatment of advanced and metastatic solid tumors with loss of SMARCA4 due to truncating mutation and/or deletion. The company's CDK9 program is a regulator of cancer-promoting transcriptional programs, including MCL1, MYC and MYB. Prelude Therapeutics Incorporated was incorporated in 2016 and is based in Wilmington, Delaware.