Critical Comparison: Lexaria Bioscience (NASDAQ:LEXX) & Prima BioMed (NASDAQ:IMMP)

Prima BioMed (NASDAQ:IMMP) and Lexaria Bioscience (NASDAQ:LEXX) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, earnings, risk, analyst recommendations, valuation and institutional ownership.

Profitability

This table compares Prima BioMed and Lexaria Bioscience’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Prima BioMed	N/A	N/A	N/A
Lexaria Bioscience	-1,849.19%	-157.22%	-133.69%

Institutional and Insider Ownership

2.3% of Prima BioMed shares are owned by institutional investors. Comparatively, 13.1% of Lexaria Bioscience shares are owned by institutional investors. 3.1% of Prima BioMed shares are owned by company insiders. Comparatively, 26.4% of Lexaria Bioscience shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Prima BioMed and Lexaria Bioscience”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Prima BioMed	$6.69 million	44.00	-$39.78 million	N/A	N/A
Lexaria Bioscience	$615,923.00	33.03	-$5.80 million	($0.67)	-1.37

Lexaria Bioscience has lower revenue, but higher earnings than Prima BioMed.

Analyst Ratings

This is a summary of current recommendations and price targets for Prima BioMed and Lexaria Bioscience, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Prima BioMed	1	0	1	0	2.00
Lexaria Bioscience	1	0	1	0	2.00

Prima BioMed currently has a consensus price target of $7.00, indicating a potential upside of 250.00%. Lexaria Bioscience has a consensus price target of $4.00, indicating a potential upside of 337.06%. Given Lexaria Bioscience’s higher probable upside, analysts plainly believe Lexaria Bioscience is more favorable than Prima BioMed.

Risk & Volatility

Prima BioMed has a beta of 1.87, suggesting that its stock price is 87% more volatile than the S&P 500. Comparatively, Lexaria Bioscience has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500.

Summary

Prima BioMed beats Lexaria Bioscience on 6 of the 10 factors compared between the two stocks.

About Prima BioMed

Immutep Limited, a clinical-stage biotechnology company, engages in developing novel LAG-3 Immunotherapy for cancer and autoimmune diseases. The company is involved in advancing therapeutics related to Lymphocyte Activation Gene-3 (LAG-3), a cell surface molecule that plays a vital role in regulating the immune system. Its LAG-3 immunotherapies are designed to harness and strengthen the power of patients' immune systems to fight cancer and autoimmune disease. Its lead product candidate is eftilagimod alpha (efti or IMP321) for the treatment of different types of cancers. The trials that efi is being evaluated in include TACTI-002, a Phase II clinical trial for the treatment of head and neck squamous cell carcinoma (HNSCC) and non-small cell lung cancer (NSCLC); TACTI-003, a Phase IIb clinical trial to treat HNSCC; and INSIGHT-003, a Phase I clinical trial for the treatment of NSCLC, as well as INSIGHT-005, a Phase I/IIa clinical trial to treat solid tumors. In addition, it offers IMP761, an agonist of lymphocyte activation gene 3 for autoimmune disease; IMP701, an antagonist antibody that acts to stimulate T cell proliferation in cancer patients; and IMP731, a depleting antibody that removes T cells involved in autoimmunity. The company has collaboration agreements with GlaxoSmithKline, Novartis, CYTLIMIC Inc., Merck & Co., Inc., Institute of Clinical Cancer Research, Merck KGaA, and EOC Pharma. The company was formerly known as Prima BioMed Ltd and changed its name to Immutep Limited in November 2017. The company was incorporated in 1987 and is headquartered in Sydney, Australia.

About Lexaria Bioscience

Lexaria Bioscience Corp. operates as a biotechnology company. It develops and out-licenses its patented drug delivery technology, DehydraTECH, which combines lipophilic molecules or active pharmaceutical ingredients with specific long-chain fatty acids and carrier compounds that improve the way they enter the bloodstream, increasing their effectiveness and allowing for lower overall dosing while promoting healthier oral ingestion methods. The company's DehydraTECH is used with a range of active molecules encompassing fat-soluble vitamins, pain medications, hormones, PDE5 inhibitors, antivirals, oral nicotine and its analogs, and cannabinoids. Its DehydraTECH technology evaluates therapeutic indications, including hypertension, heart disease, and diabetes; and is suitable for a variety of product formats, such as pharmaceuticals, nutraceuticals, over the counter, and consumer packaged goods. Lexaria Bioscience Corp. was incorporated in 2004 and is headquartered in Kelowna, Canada.