Critical Analysis: Protalix BioTherapeutics (NYSE:PLX) versus Adaptimmune Therapeutics (NASDAQ:ADAP)

Protalix BioTherapeutics (NYSE:PLX) and Adaptimmune Therapeutics (NASDAQ:ADAP) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.

Profitability

This table compares Protalix BioTherapeutics and Adaptimmune Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Protalix BioTherapeutics	-38.62%	-45.15%	-16.63%
Adaptimmune Therapeutics	-890.13%	-259.68%	-61.31%

Risk & Volatility

Protalix BioTherapeutics has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500. Comparatively, Adaptimmune Therapeutics has a beta of 2.31, suggesting that its stock price is 131% more volatile than the S&P 500.

Insider & Institutional Ownership

16.5% of Protalix BioTherapeutics shares are held by institutional investors. Comparatively, 31.4% of Adaptimmune Therapeutics shares are held by institutional investors. 5.0% of Protalix BioTherapeutics shares are held by company insiders. Comparatively, 12.4% of Adaptimmune Therapeutics 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.

Valuation & Earnings

This table compares Protalix BioTherapeutics and Adaptimmune Therapeutics’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Protalix BioTherapeutics	$38.05 million	1.73	$8.31 million	$0.04	22.50
Adaptimmune Therapeutics	$141.46 million	2.13	-$113.87 million	($0.74)	-1.65

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

Analyst Recommendations

This is a breakdown of current recommendations for Protalix BioTherapeutics and Adaptimmune Therapeutics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Protalix BioTherapeutics	0	0	1	0	3.00
Adaptimmune Therapeutics	0	0	3	0	3.00

Protalix BioTherapeutics presently has a consensus price target of $10.00, suggesting a potential upside of 1,011.11%. Adaptimmune Therapeutics has a consensus price target of $3.38, suggesting a potential upside of 177.32%. Given Protalix BioTherapeutics’ higher possible upside, analysts clearly believe Protalix BioTherapeutics is more favorable than Adaptimmune Therapeutics.

Summary

Protalix BioTherapeutics beats Adaptimmune Therapeutics on 7 of the 13 factors compared between the two stocks.

About Protalix BioTherapeutics

Protalix BioTherapeutics, Inc., a biopharmaceutical company, engages in the development, production, and commercialization of recombinant therapeutic proteins based on its proprietary ProCellEx plant cell-based protein expression system in the United States, Australia, Canada, Israel, Brazil, Russia, Turkey, and internationally. The company offers Elelyso for the treatment of Gaucher disease; and Elfabrio for the treatment of adult patients with a confirmed diagnosis of Fabry disease. It is also developing PRX-115, a plant cell-expressed recombinant PEGylated Uricase which is in Phase I trial for the treatment of gout; and PRX-119, a plant cell-expressed PEGylated recombinant human DNase I product candidate that is in preclinical phase for the treatment of NETs-related diseases. The company has agreements and partnerships with Pfizer; Fundação Oswaldo Cruz; and Chiesi Farmaceutici S.p.A. The company was incorporated in 1993 and is headquartered in Karmiel, Israel. Protalix BioTherapeutics, Inc. is a subsidiary of Protalix Ltd.

About Adaptimmune Therapeutics

Adaptimmune Therapeutics plc, a clinical-stage biopharmaceutical company, provides novel cell therapies primarily to cancer patients in the United States and the United Kingdom. It develops SPEARHEAD-1 that is in phase II clinical trials with ADP-A2M4 for synovial sarcoma; SURPASS-3 that is in phase II clinical trial with ADP-A2M4CD8 for people with platinum resistant ovarian cancer; and SURPASS that is in phase I clinical trials in patients with head and neck, and urothelial cancers. The company has strategic collaboration and license agreement with Genentech, Inc. and F. Hoffman-La Roche Ltd to develop personalized allogeneic and allogeneic T-cell therapies; research, collaboration, and license agreement with Universal Cells, Inc.; third-party collaborations with Noile-Immune and Alpine Immune Sciences; and strategic alliance agreement with the MD Anderson Cancer Center. Adaptimmune Therapeutics plc was founded in 2008 and is headquartered in Abingdon, the United Kingdom.